DEATH TAX HARD TO LIVE WITH PDF Print E-mail
Monday, 06 April 2009 06:23
Monday 6 April 2009

 

Ms. Lisa MacLeod: To the Minister of Small Business and Consumer Services: Death and taxes might be inevitable, but thanks to the Liberals' HST plan, your government is putting a 13% death tax on all funeral service costs, from caskets to tombstones. Will you exempt the bereaved and dying from this 13% death tax, or will you favour the much lower 5% GST: yes or no?

Hon. Harinder S. Takhar: Let me say this: I am very proud of the budget that was presented by the Minister of Finance. It strikes a very exact balance that we need to keep our economy moving at this point in time. This budget has actually $10.6 billion worth of tax savings for Ontarians, and out of that, $4 billion in cash payments to 6.5 million Ontario families and individuals. Families making less than $160,000 will get about $1,000 in the HST rebate in the transitional year and about $260 worth of tax credits going forward as well. These are some of the measures that are being taken in order to offset the impact of the HST harmonization, or the single tax, as we call it-

The Speaker (Hon. Steve Peters): Thank you. Supplementary?

Ms. Lisa MacLeod: What I got out of that is that your government is going to tax us to the grave and now you want to tax us to death. On July 10, 2010, Ontarians will be paying a 13% tax on funeral services, a 13% tax on caskets, a 13% tax on flowers and, yes, a 13% tax on final resting places. Under the Liberal HST plan, the bereaved and the dying will have to dish out 8% more on their funeral services. That could be at least $1,200 per bereaved family. Since you won't exempt the dying and the bereaved from paying a 13% increase in death taxes, will you commit to Ontarians today in this chamber that you will grandfather at the 5% GST funeral home contracts that have been sold or will be sold by July 1, 2010?

Hon. Harinder S. Takhar: What we really need right now is to make sure that our province becomes very competitive and we can get out of this global challenge that we are facing at this point in time. The single tax system that is being supported in this budget is actually a step in the right direction to make our province competitive as we move forward. It's not only that we are advocating it; the federal government is supporting us in this. They are giving us some of the transition money so that we can help consumers to do that. The other provinces have done it, and all have actually reaped benefits of that. So I really want to encourage the member on the other side to really see the benefits of the single sales tax as we move forward and make our province more competitive.