I consider that the news media have been somewhat remiss in determining that full negative impact of costs to the taxpayers when the Liberal Government introduces an HST sometime in August 2010.

Although there have been numerous reports pertaining o some concessions that the government would apply to purchases related to real estate and other specific items that are designed to pacify some taxpayer concerns, no one has bothered to determine the true negative impact when it is applied to commercial rental properties.

For example, most businesses and office operations in the province rent their premises from other owners or companies who are required to collect and pay the present 5% GST to the government. With the introduction of a harmonized GST/PST, all these business operations will be required to pay a further 8% for a total of 13% on their premises.

Furthermore, the province recently conducted and introduced a complete reevaluation of all properties which will substantially increase most values and municipal revenues without increasing the existing MIL rates over the next few years.

Furthermore, when these municipalities determine that expenses require another MIL rate increase, then property taxes will again be applied to the new evaluations.

As a result, most property owners will probably increase the rents to compensate them when they pay these additional taxes. This in turn will result I a substantial and further increase in the price of most products and services within the province and provide the McGuinty Government with even more tax revenues, which could probably exceed another billion dollars in this one area alone.

It is interesting to note and question the reasons why this new tax is proposed for August 2010 when the provincial election is called shortly after in 2011.

I suggest that his will enable the Liberal government to introduce more campaign giveways in their quest for re-election.

Since this government was elected we have all been subjected to numerous tax increases, which they originally promised would not occur if they were elected. Naturally, circumstances have changed in recent years, especially during this time of recession, resulting in government costs and tax increases, but surely there must be some constructive limitations on further tax increases when people are already struggling to make ends meet.
M. Bradshaw
Proton Station