Quote:
Originally Posted by 1overcosc
Called it... Wynne announces removal of provincial portion of HST from hydro bills. And pretty quickly too... taking effect in three and a half months despite having to go through the legislature and the regulatory system first.
The cost of this in lost tax revenue is estimated at $1 billion. The government says they can still present a balanced budget this spring in spite of that, and given how soon that is, I doubt they're lying.
What this means is that through some combination of the ongoing positive effects of low dollar/low oil and ongoing spending restraint, the government was actually headed towards posting a surplus of at least $1 billion this spring.. and decided to throw that at hydro consumers. Very much an indication of where the Liberals electoral priorities are right now.
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Removing the provincial portion of the HST on Hydro is a strategy to implement one of the major planks in the NDP platform. The weird thing is that the ON NDP issued a press release yesterday calling on the Liberals to removed the HST on hydro! Um, it's been announced! Here is the press release and its link:
http://www.ontariondp.ca/throne_spee..._good_jobs_ndp
Throne speech does not go far enough to lower hydro costs, improve healthcare and support good jobs: NDP
September 12, 2016
Ontario NDP Leader Andrea Horwath said that the throne speech must commit to actions that will make a real difference in people’s lives when it comes to hydro costs, healthcare, and jobs. It’s now clear that the Liberal plan does not go far enough to in any of these key areas.
“We’re at a tipping point in this province. In today’s throne speech New Democrats hoped to see big changes so that the next generation will have more opportunity and a better future.” said Horwath. “Today’s throne speech could have done so much more to give immediate relief to families, to improve the quality of work in this province, to stop the sell-off of Hydro One, and to make sure everyone has health care they can count on. After listening to the Throne Speech, I can tell you New Democrats will keep working for the real action that people need to see.”
HST was added to Ontario residential electricity bills by the Liberals in 2010. Prior to that there was no provincial sales tax on electricity. Today’s speech from the throne indicated the government will introduce a rebate for Hydro instead of removing HST. There was no mention of how long this rebate would remain in place.
“For six years, New Democrats have been calling on the Liberals to take the HST off hydro as just the first step to lower hydro bills. Instead we see a bit of welcome relief, but nobody in Ontario knows how long it will last. Let’s make it easy. My message to the Premier is this: just take the HST off hydro, once and for all. Just get rid of it,” continued Horwath. “By refusing to stop the sell-off of Hydro One, the Liberals have shown that they still aren’t listening. Premier Wynne is still not interested in taking action to control the long-term rise in electricity costs.”
The NDP Leader said that the first step to improving healthcare in Ontario is for the Liberals to stop the cuts in our hospitals and to get wait times and overcrowding under control.