the survey - Research by dfsdf224s


									  Research                                                                                   September 2009

        Look Before You Leap!
        Results of CFIB’s Ontario Member Survey on the HST

        Satinder Chera, Director of Provincial Affairs

        As part of the 2009 Ontario Budget, the province announced a federal-
        provincial agreement to combine Ontario’s Retail Sales Tax (RST) with the
        Goods and Services Tax (GST), creating a federally-administered Harmonized
        Sales Tax (HST) that will take effect July 1, 2010. The lack of public
        consultation has, in part, generated mixed reviews about the harmonized tax.
        A recent CFIB survey of small and medium-sized businesses points to growing
        concerns about the lack of information and the impact on consumers.

                                                                … the increase of eight percent will affect
        CFIB’s involvement in the debate over value-            every single item and service associated with
        added taxes (VATs) spans more than 25                   my business. Currently there are no provincial
                                                                sales taxes that apply to our business. Our
        years. In 1986, the CFIB commissioned                   customers will be hit and hit hard!
        groundbreaking research on the impact of
                                                                                                CFIB Member
        VATs on small businesses around the world
        (VAT and Small Business: European
        Experience and Implications for North
        America). Many of the findings are every bit
        as relevant today as they were then – a two-
        tiered sales tax system is bad for small
        business and the broader economy.
                                                         CFIB articulated several principles of what a
        Prior to the passage of the Goods and
                                                         “properly harmonized” sales tax system
        Services Tax (GST) in 1990, CFIB mobilized
                                                         would look like, but warned that even if
        its members to fight the proposed separate
                                                         “perfect” harmonization was achieved, a
        federal sales tax, including a legal challenge
                                                         large number of small businesses would
        at the Supreme Court of Canada. Concerned
                                                         continue to oppose the GST. These
        about the inevitable tax and paper burden
                                                         principles included:
        increase on consumers and businesses, CFIB
        subsequently recommended the lesser of           a) One sales tax system across Canada;
        two evils - harmonizing the GST with             b) A lower rate than simply combining the
        provincial sales taxes at a lower rate.             GST with the respective PST;
 Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                            2

c) One set of rules, one set of audit                      A recent survey of small and medium-sized
   procedures, a single remittance                         businesses highlights the lack of
   requirement and one tax collector.                      information and the growing concern about
                                                           the impact of the harmonized tax on
The more open and transparent process
                                                           consumers. CFIB hopes that both levels of
and lower combined tax rate that shaped
                                                           government will use this feedback to
the debate over harmonization in Atlantic
                                                           rework the final agreement, limit the
Canada in the late-1990s helped to
                                                           negative impact and increase the benefits of
galvanize support for an agreement that
                                                           whatever tax that is ultimately implemented
included these fundamental principles.
                                                           on July 1, 2010.
The decision to include consultation with
small business and other stakeholders prior
to finalizing the agreement to harmonize
the GST with the provincial sales tax in
Nova Scotia, New Brunswick and
Newfoundland and Labrador continues to                                 We are actually pleased about merging the
stand as a model for how to initiate “sales                            two as RST is extremely difficult to apply as
                                                                       there are so many exceptions to the rules.
tax reform” in Canada.
                                                                       We can call and get 3 different rulings from
It should be no surprise that the recent                               the RST office.

decision to conclude the agreement to                                                                 CFIB Member
harmonize Ontario’s Retail Sales Tax (RST)
with the GST behind closed doors has
generated anger and mixed reviews about
the new tax here.

Sales Tax Collection

Most small businesses already collect both
the GST and PST from their customers (see
Figure 1). As a result, the benefits of a                  Figure 1:
harmonized sales tax are more
                                                           Sales Tax Collection
straightforward here – higher input tax
                                                           Which sales taxes does your firm currently have to
credits, less paperwork.
                                                           collect from your customers? (% response)
For the more than one-third of businesses
who only collect the GST, the potential
benefits are the furthest thing from their                          Both                                       57%

mind when they have to add 8 per cent to
the cost of their goods and services. This is                          GST                          40%

particularly relevant in the service sector.

At a time when consumers have seen their                       Ontario RST    3%

savings wither away, additional taxes on
some goods and most services is another
                                                           Source: CFIB, Ontario Sales Tax Reform Survey, 2009
reason to stop them from opening their
    Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                                               3

  Anticipated Compliance Burden
                                                              Figure 2:
  Most businesses will not be sad to see
  Ontario’s Retail Sales Tax go. It is a                      Rating the GST
  hopelessly complex and poorly                               Given the new single sales tax is to be modeled on
  administered sales tax regime.                              the GST, how simple or difficult is it to deal with the
                                                              following aspects of the current GST? (% response)
  Modeling the harmonized sales tax on the
  GST, however, carries its own challenges. In                 Handling zero-rated products or special
                                                                                                                                  38                    31

  fact, a recent CFIB study pegged the annual
  cost of complying with the GST/HST at $3.1                       Properly identifying Input Tax Credits                          38                    22

  billion (CFIB: The Hidden Tax Burden).
                                                                               Customer reluctance to pay                         33                    25
  Nearly two decades after it was first
  unveiled, various aspects of the GST                          Properly identifying taxable products or
                                                                                                                                       31                    15
  continue to pose challenges for small
  businesses (see Figure 2). The most                                                                                Moderate               Difficult

  problematic include handling zero-rated
  products or special exemptions and                          Source: CFIB, Ontario Sales Tax Reform Survey, 2009

  customer reluctance to pay.

  Businesses often struggle to understand
  which goods and services are taxable and
  this confusion can lead to errors, audits and
  appeals. The extent to which the                            Figure 3:
  exemptions already slated for the new tax                   Exemptions
  will create confusion for small and mid-
                                                              Which of the following do you sell? (% response)
  sized firms (see Figure 3) will depend upon
  the support that businesses receive from                       Books, children’s clothing and footwear, child car seats
                                                                   and car booster seats, diapers, or feminine hygiene       7%
  the Canada Revenue Agency (CRA).                                 Energy, small vehicles, telecom services, meals or
                                                               entertainment to large businesses (i.e. those with taxable    5%
                                                                  sales above $10 million) and/or financial institutions

  Here the government can head off potential
                                                                                             Prepared meals under $4.00     4%

  hardships, and correct existing issues, by
  implementing a robust code of conduct for                                                          Alcoholic beverages    3%

  small businesses. Based on British                           Newly constructed houses priced at $500,000 and higher       2%

  Columbia’s Taxpayer Fairness and Service
                                                                                                           Not Applicable                                         83%

  Code, the federal government can ensure
  that businesses that are required to collect
                                                              Source: CFIB, Ontario Sales Tax Reform Survey, 2009
  the new tax are treated fairly by the CRA
  and have access to timely information and
  services that allow them to comply with
  their obligations under the new single sales
  tax with fewer problems.

  For example, the BC code gives small firms
  the ability to request interpretation in
  writing and will honour those
  interpretations even if they turn out to be
  wrong later.
 Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                                     4

HST – Beneficial Aspects                                   Figure 4:

                                                           HST – Beneficial Aspects
While less paperwork (35 per cent) and the
increase in input tax credits (22 per cent) were           What are the beneficial aspects of this single sales tax
                                                           for your business? (% response)
identified as the most beneficial aspects of
the new tax, given the dearth of information it
                                                                                     None that I can think of                                       57%
is no surprise that most small firms remain
                                                                   Single sales tax system will be simpler to
skeptical of the benefits (see Figure 4). Also,                      understand from the standpoint of…

                                                             Firm’s bottom line will be improved because of
given the anticipated increase in the price of                 input tax credits increased to 13% from 5%

goods and services that are currently exempt                 My prices will be more competitive as result of
                                                                       increased input tax credits
from RST, many see the potential loss of sales                 My firm’s exported products will not contain
                                                                        embedded retail sales tax
as wiping out any savings
                                                                                        Other (please specify)         3%
Strangely, Ontario has been less than                       It will provide an advantage over competitors in
                                                                              other provinces
forthcoming about certain details, including
savings to businesses from input tax credits.
                                                           Source: CFIB, Ontario Sales Tax Reform Survey, 2009
While negotiating the agreement behind
closed doors was bad enough, not being
upfront about benefits will do even less to get
Ontario entrepreneurs to sign-on to the HST.

Moreover, the province has been largely silent
on how much it will save from the move to a
harmonized tax. Given that the HST will be
federally-administered, one would expect
significant savings to the provincial treasury
from eliminating the current RST bureaucracy.

HST – Harmful Aspects
                                                           Figure 5:
The increase in the sales tax burden on
consumers (75 per cent), and growth in the                 HST – Harmful Aspects
underground economy (44 per cent) were                     What are the harmful aspects of this single sales tax
identified as the most harmful aspects of the              for your business? (% response)
harmonized sales tax (see Figure 5).
                                                                         ers ill
                                                               Custom w not like higher tax rates on som of     e
With Ontario’s economy on the mend,                                              y ’s
                                                                               m firm goods/services
business owners cannot afford to raise their                               ill                  th
                                                                       It w encourage grow in the underground
                                                                                            y y
                                                                                    econom in m sector
prices. Also, any potential savings from the                         ill
                                                                 It w provide a disadvantage w com   ith petitors in
                                                                                     other provinces
new tax to businesses could be offset by
                                                                                  s ith
                                                               Possible problem w converting cash registers to
government agencies looking to fill their own                                  the newsingle sales tax
                                                               Cost of changing the price of pre-priced item (e.g.
depleted coffers. Instead of removing                                       advertising flyers, catalogues)
purchasing power from the economy,
                                                                                             O (please specify)               16%
government should consider lowering the
                                                                                           None that I can think of          12%
combined rate to spur economic growth.

Moreover, rather than implementing policies
that pick the pockets of law-abiding                       Source: CFIB, Ontario Sales Tax Reform Survey, 2009
businesses to fight the underground economy
(i.e. mandatory WSIB coverage in
construction), the government should be
looking for opportunities to work with small
firms to go after the real cheats.
    Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                               5

  Transition Period                                           Figure 6:
                                                              Changes that Business expect to make
  As with any change in sales tax policy, the                 What type of changes do you expect to make to your
  burden for implementing change largely                      business to prepare for the new single sales tax? (%
  falls on small and medium-sized                             response)
  businesses. Accordingly, the government                       I expect to have to make only simple
                                                                  changes to manual practices or to                                        34%
  has a responsibility to ensure that affected                                 software

  businesses have the information and                            I expect to have to make moderate
                                                                 changes to my accounting or retail                                  28%
  resources to implement the plan.                                             systems

  When asked about the types of changes that                    Don’t know, I require more details
                                                               about the new single sales tax system

  will become necessary, a third reported
  changes to manual practices or to software                     I expect to have to make significant
                                                                         changes or upgrades

  and changes to accounting or retail systems
  (See Figure 6). A quarter of the                            Source: CFIB, Ontario Sales Tax Reform Survey, 2009
  respondents were unable to specify due to
  lack of details about the new tax.
                                                              Figure 7:
  In fact, one CFIB member wrote: “I really do
                                                              Long-term Contracts
  not know enough about the single sales tax
                                                              Does your firm typically do contracts such that
  system to comment completely. I would be
                                                              delivery of your products or services will straddle the
  interested to know how it would impact                      July 1, 2010 implementation date? (% response)
  contractor pricing… What happens with the
  new system?”
                                                               Yes                                                                         55%
  With over half the respondents reporting
  that some of their contracts straddle the July
                                                                No                                                             45%
  1, 2010 implementation date, the lack of
  available information about how these and
  other cases will be handled is also feeding                 Source: CFIB, Ontario Sales Tax Reform Survey, 2009
  concerns about the new tax (see Figure 7).

  On some of the more specific changes that                   Figure 8:
  businesses will be expected to make, on                     Readiness to Adjust to New Sales Tax
  average, one in three firms say that they                   Approximately how long do you expect it would take
  will need at least a month to make the                      your business to adjust to each of the following? (%
  necessary changes to cash registers,                        response)
  accounting software, taxable benefit
  calculations, published materials, online                      Respond to changes in input tax
                                                                        credit methods
                                                                                                                41                 29

  payment software, input tax credit methods                            Change taxable benefit
                                                                                                               34             20
  and pre-authorized payment transactions
                                                               Update accounts payable software                34             19
  (see Figure 8).                                                  Adjust existing pre-authorized
                                                                                                           26            15
                                                                       payment transactions
  Having dedicated resources (websites, help                       Update price lists, catalogues,
                                                                                                           23            21
                                                                           sales materials
  lines) that allow businesses to obtain the                     Update new single rate in sales
                                                                                                          18        8
  information they need, including grace                         equipment such as cash register
                                                               Update website or online payment
  periods for more difficult adjustments                                   software
                                                                                                          17        14

  would be a step in the right direction.                                              Month        More than a Month

                                                              Source: CFIB, Ontario Sales Tax Reform Survey, 2009
 Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      6

Adjustment Costs                                           Figure 9:

                                                           Adjustment Methods
Owners of small businesses cope with the
                                                           In preparation for the new single sales tax, how
requirements of government primarily on
                                                           would you make the necessary changes?
their own. Small firms often do not have the               (% response)
resources to hire outside consultants and
professionals, making the transitional                        Combination of internal and external
challenges that much more difficult.                                      resources

                                                                   I would make the changes with
Thirty-seven percent of respondents expect                             internal staff resources

to make the necessary changes to the new
harmonized sales tax through internal                                                  Don’t know         11%

resources, while only eight percent will rely
                                                              I would need to seek external help to
exclusively on external resources; forty-five                          make the changes

percent will use a combination of the two
(see Figure 9).                                            Source: CFIB, Ontario Sales Tax Reform Survey, 2009

While the Ontario Government has set aside
funding to help small businesses make the
necessary changes, the $300 to $1000 Small                 Figure 10:
Business Transition Credit will not come                   Average adjustment costs per employee, by size
close to matching the true cost of                         of business
implementing the required changes.
                                                           Approximately how much would you estimate it
When asked about the cost of transitioning                 would cost your business to make the transition to
to the new sales tax, business owners, on                  the new single sales tax system?
                                                           (% response)
average, expect to spend approximately
$3,845. On a per-employee basis, the cost of
making the adjustments will be highest for                         $957 

the smallest firms (see Figure 10).

Given the critical role that small firms play
in collecting and remitting sales taxes to the
government, providing them with the                                                                   $236 

appropriate financial resources to carry out                                                                     $76 

that task is the very least the government                          0‐4                5‐19           20‐49     50‐499
can do.
                                                                                   Number of Employees

                                                           Source: CFIB, Ontario Sales Tax Reform Survey, 2009
    Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                  7

  Vendor Compensation
                                                              Figure 11
  The one silver lining to an otherwise poorly
                                                              Vendor Compensation
  administered provincial RST system is
  vendor compensation. It is a small payment                  Should vendors be compensated for collecting and
  to businesses in recognition of the                         remitting the new single sales tax? (Select one)
  painstaking work they do to collect and
  remit the tax. Under the harmonization                              Yes                                 83%

  agreement, the current vendor
  compensation, which provides up to $1,500
  in compensation to businesses a year,                               No    7%

  would be eliminated.

  By an overwhelming margin, small                             Don’t know   10%

  businesses would like to see the
  compensation regime continue under the                      Source: CFIB, Ontario Sales Tax Reform Survey, 2009
  new sales tax (see Figure 11). As one CFIB
  member put it: “It costs small business
  owners to collect tax on behalf of the
  government… I feel that we should get
  compensated for tracking sales tax owing,
  collecting the funds and remitting them.”

  Moreover, Premier McGuinty made the
  following commitment to CFIB members in
  the last election: “…we’re willing to work
  with you and other sectors to make sure the
  system [vendor compensation] is helping
  Ontarians help themselves and their

  At the very least, small businesses should
  be able to count on their government to
  honour the commitments they make.


  The approach by the Ontario and Federal
  Governments to combine the RST with the
  GST has led to mixed reviews about the new
  harmonized sales tax.

  The results of CFIB’s special survey on the
  HST clearly shows that both levels of
  government have “dropped the ball” on this
  important issue. The lack of public
  consultation, the dearth of information and
  the growing concern about the impact of
 Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                              8

the new tax on consumers has fuelled the                       CFIB is pleased that governments have
scepticism about the benefits of the HST. If                   indicated their intention to maintain the
government is serious about regaining the                      visibility of the tax. However, the lack of
trust of the province’s job creators, they                     information on the value of input tax
can start by showing that they are listening.                  credits and projections of future HST
                                                               revenue is an ongoing concern.
CFIB hopes that both levels of government
will use the findings in this report to make               3) Ongoing vendor compensation for tax
the harmonized sales tax a win for both                       collection work. One of the few
consumers and businesses.                                     aspects of provincial sales tax
                                                              administration that businesses support
We therefore strongly recommend that the                      is the recognition from governments
following measures be included in the final                   that they are tax collectors for the
agreement on harmonization:                                   public. As current plans would mean the
                                                              end of vendor compensation, CFIB
1) A win for consumers through a lower                        recommends that the Ontario
   combined rate. A great deal of the                         government either work with the federal
   concern for business owners is based on                    government to introduce a national
   the impact on consumers. A rate                            vendor compensation regime under the
   reduction would offer a clear benefit to                   GST or create a parallel provincial
   both consumers and businesses who are                      program to do the same.
   struggling to see the direct advantages
   of harmonization.                                       4) Increase the Small Business Transition
                                                              Credit. The current planned tax credit
   Accordingly, the clause in the current                     falls short of matching the cost of
   agreement that prohibits any change to                     implementing the new tax. Given the
   the RST or GST portions of the new                         critical role that small businesses play
   sales tax for the next two years should                    in collecting sales taxes, the government
   be changed to what really matters to                       should provide them with the
   consumers and businesses – a                               appropriate resources to make the
   commitment not to increase the                             transition. Therefore, CFIB recommends
   combined rate. In addition, strong                         a larger credit and higher eligibility
   measures should be considered to                           threshold to help firms make the
   ensure that Ontarians have a final say                     transition to the new tax.
   over any future proposal to increase the
   overall rate (i.e. referendum).                         5) Introduce a Fairness Code for Small
                                                              Business. After a great deal of solid
2) Visibility of the tax and associated                       work between CFIB and the BC
   revenue stream. One of the principles                      government, a Taxpayer Fairness Code
   of fair taxation is to ensure that all tax                 was introduced. While other
   rates are visible to consumers. CFIB                       government agencies, including the
   members oppose imbedding sales taxes                       Canada Revenue Agency, have codes,
   in the prices of goods and services                        the BC code offers some important
   (CFIB: 2007 Tax Competitiveness                            benefits such as the ability to request
   Survey). In addition, full and detailed                    interpretation in writing, having those
   information on projected tax revenues                      interpretations supported even if they
   associated with harmonization should                       turn out to be wrong, and having
   be made public.                                            outside parties involved in determining
                                                              how a reasonable party would interpret
    Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                               9

      such advice in disputes. A robust                       Research Notes:
      fairness code should be part of the                     This report is based on the findings of a survey of
                                                              CFIB members in Ontario. The survey was
      Canada-Ontario agreement on sales tax
                                                              conducted online between June and August 2009.
      harmonization.                                          Results are based on 2991 responses and are
                                                              considered accurate to within +/- 1.8 percentage
                                                              points, 19 times out of 20.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       10

                     Appendix A – Member Comments
       Please provide CFIB with any additional comments on how the new single sales tax system should be
                                designed to minimize its impact on your business.

 First , get rid of WSIB, then lets streamline

 Currently professional services and prescription drugs for animals are subject to GST only. Under the new system all of our
 billings would be subject to the new RST. As very few of our input costs are currently subject to PST, our savings in terms
 of ITCs would be minimal, but the cost to our clients would increase by 8%. Veterinary Medicine should be considered a
 family health care service, and therefore be exempt.

 All insurance products should be sales tax exempt in my opinion!

 Lower the combined rate to 10%

 I personally think it is a tax grab. The combined rate should be no higher than 11%.

 I am leaving it up to our association to discuss and negotiate with the powers to be in designing a sales tax system that is
 fair to all the needs of the public and not necessarily to the advantage of the government and bureaucrats

 As an accounting firm with services not currently subject to RST and with over 60% of our expenses labour related,
 insurance etc and therefore without any input credits, the cost to our customers of our services will rise 8%. Probably
 about half of them will not be eligible to claim ITC's as individuals, not for profit entities etc so they will either absorb the
 cost or look to us for a reduction in our fee. This change to a harmonized tax is of no benefit to us and will likely just cause
 us problems.

 The implementation of the HST in Ontario at this time in our economic cycle will only extend our 'depression' for the
 province. McGuinty has no clue of what to do with the money; he will only waste it on eHealth, child care. Will not put a
 penny into Universities and Schools other than give raises to the teachers. It is sinful the way he is running this province.
 The Province is going to have a flood of new money that our Premier will simply 'waste'. Like a school just for one race but
 other contributing races are not allowed a public school of their own. Well if that is not racism or prejudice then what is??
 The people of this province outside of the 905 area code have NO CONFIDENCE in this premier.

 Rather than deal with higher tax and higher ITCs - going to a lower single sales tax would be beneficial.

 The Goods and Services Tax to a minimum six months to a year to overcome financially after the Government
 implemented the tax. The additional 8% tax that we currently do not pay will have similar impact on our business.

 I really do not know enough about the single sales tax system to comment completely. I would be interested to know how
 it would impact on contractor pricing. Currently our contracts include pst in quoted price plus GST is extra. Gst is then
 remitted. What happens with the new system?

 This sales tax will destroy the petroleum business as we know it today and create a great deal of losses in revenue to the
 federal and provincial government through native tax except sales on and off the reserve of gasoline, organized crime I am
 sure are rubbing there hands together to sell gasoline off the reserve and have a thirteen cent a litre advantage on reserve
 service stations. There are 127 reserves in the province of Ontario that house 164 stations on these reserves. The
 government stands to loose an enormous amount of tax revenue. This problem is all over north America and has been
 studied to death. The consensus is to move these taxes to the manufacture level through the excise tax and provincial
 road tax collection saving our tax base and losses from tax paying businesses.

 Please do whatever you can to prevent this terrible new tax burden to take place. It will our business and potentially will
 increase the underground economy overall.

 My customers pay both taxes now. So not much will change. We will loose the 1500.00 per year.

 Only 10% of our business is currently GST and PST applicable. The other 90% is GST services only. Will we have to charge
 everyone 13% instead of 5% and does the province get that for no good reason?

 I can't answer that other than there will be items that were exempt before but now will be charged. The list is long, from
 what I have been told.

 Ontario will be collecting a lot more total PST and not paying businesses $1500 to collect it. They should be reducing the
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                   11

 PST to make it revenue neutral. Otherwise this smells of a huge tax grab.

 Stop collecting GST/HST on neutral transactions such as property rental between the owner of the business and the
 business - the business pays the GST/HST and gets the ITC and the owner remits it to the gov't - this is a waste of time.
 They need to expand exemptions of the tax and mirror the current PST system to save us all time and money.

 Should be reduced and the exemption list should be more considerate of mandatory items such as home heating fuels.

 I own a ladies fitness centre. Monthly membership is now $48 per month, putting up the price to over $50 will guarantee a
 loss in membership, just because of the optics.

 Not impressed with the new single sales tax idea.

 Distinct disadvantage to my business. My clients would have to pay an additional 8% on my services that are now exempt.
 I see no valid reason to change from the current method.

 Change the RST portion to 6% to compensate for all the items not under RST now that will be charged the tax after

 This tax as it stands will destroy the housing market. This needs to be looked at. The 13% is too high and will drive the
 underground economy.

 Exemptions and special cases and different rates should be kept to a minimum. The proposals already contain too many
 special rates, cases and exemptions. This adds unneeded complexity and confusion to the system in my opinion.

 I'm a Registered massage Therapist HST means raising my prices by an extra 8% I've already felt a loss due the current
 economic situation, and if I raise my prices it will only get worse. I suggest that with the harmonization of taxes, keep
 those that were PST exempt at 5%

 Our business is exempt from the PST According to my view this proposed single sales tax is the biggest tax increase
 Ontario ever tabled.

 VERY concerned about impact on sales of real estate and professional services for individuals

 Housing should be exempt - the additional tax will help kill the economy when it is predicted to be coming out of the
 recession. If not exempt, the exemption level should be substantially increased ($700K to $1M, for example).


 We are going to get screwed some way or another!

 Currently, the monument industry charges 5% GST & 55% of the 8% RST (because it is considered real estate), which
 comes to 4.4%. I need to know if the harmonized tax is still going to be a total of 9.4% for our industry or if it will now be

 The underground economy is already a problem with people wanting to pay cash. With this new tax reform the problem
 will be a thousand times worse. I have a sales person who saw this personally in the Maritimes and the underground
 economy escalated rapidly .Installed services should not have to pay as much tax or there will be a lot of people trying
 desperately not to pay the tax for the services

 We sell online to other provinces. We sell a lot in Quebec because they don't have to pay the RST through our online
 ordering system. We expect to lose $300,000 in business because of this.

 Fully explain to businesses what rates will be charged and paid to and from wholesale accounts. Like GST will it be the
 balance between charged and spent that is payable. Like GST will there be the tremendous waste of paper every month or
 will it switch to the greener method used for PST.

 I am one of the few businesses that the increase of eight percent will affect every single item and service associated with
 my business. Currently there are no provincial sales taxes that apply to our business. Our customers will be hit and hit

 The new rate should be something less than the proposed 13%. I would think a rate closer to 10 or 11% would be more

 In these economic times this will devastate our business sector. Cash under the table will become more the norm & we
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       12

 cannot legitimately compete. Our sector is hurting from the economic slow down & stiff competition already so this will
 have negative results. Consumers will not pay an increased 8% in costs plus increases due to inflation, higher supply costs
 as well as higher minimum wage levels occurring next year. We have not received any official information pertaining to this
 tax implementation which should be provided ASAP. There should be a covering of all business costs to change accounting,
 paperwork, software for small businesses. Our accountants, lawyers & technicians will benefit. I would hope that if our
 service is GST/RST chargeable that we get complete input tax credits for all RST/GST we pay on business expenses. Will
 need to seek legal advice on contracts which are signed before single tax is implemented otherwise we are out of pocket
 8% on all of our contracts??!!

 There is very little RST embedded in our costs and prices owing to the fact that we and our suppliers use a Provincial Sales
 Tax license. This measure will have a negative effect on our cash flow because the tax is payable in 15 - 45 days after
 invoicing but payments from customers are often received much later than that. The cost of increased bank financing, if
 available, will increase. When the GST was introduced, it was at 7%, a reduction from the previous rate of 13% for F.S.T.
 because it applied to a wider of goods and services; the same should apply to any new H.S.T. I do not agree that, as
 currently proposed, the new tax will be revenue neutral.

 Implement it during the winter months when business is probably slower for most small businesses. July 1 is a very busy
 time of year, and would not be a good time to reprogram the cash register or shop for a new one.

 We provide nursing care currently subject to GST. I have seen no mention of an exemption and worry that it is an
 unnecessary additional 8% when care is expensive already. It will be viewed as a price increase.

 Of course you know this means that the GST will never go away as it is now a provincial matter too. By combining the two
 taxes the federal government will never have to face the GST issue again.

 How does this affect the acceptance of a native status card, my guess is it wipes that out? Presently we record the
 numbers on the picture cards as well as all the transaction information. If it eliminates that and reforms the abuse of that
 system go ahead and make the change!

 Clear & concise warnings/guidelines...reminders of what has to be done to transition to new tax. I've been waiting for this
 to happen for over 15 years! The RST is a nightmare.

 We do not collect GST or PST as it is built into our product. We cannot get GST or PST rebates on anything we purchase. I
 work in the Mutual Fund and Life Insurance Industry. This will add greatly to the cost of our products for our clients. I am
 not happy about this at all. I hope that the savings received due to the streamlining of these two taxes will help to ease
 the burden to my clients.

 Exclude the tax on legal services since they are not taxable for pst now.

 The HST is a fair tax (the rich pay more the poor pay less), it is transparent and it should go ahead as quickly as possible.

 What about rental and lease costs. Will the 13% figure apply and if so it will have a dramatic impact on overall lease costs.

 We collect only PST on parking. Administration is not a problem. Now our costs at the apartment buildings will go up by
 5%. Just like when GST came in Landlords get hit hard.

 While HST will simplify tax collection for my industry, I strongly believe it does not benefit our economy. Technical Support
 will only be further outsourced. It also increases costs and will further impact the purchase of services my company

 Compensation should be provided to cover the administrative costs for collecting and submitting the sales tax for the
 government. The end cost to the consumer will be that much higher now that the additional 8% has been added to all
 services related to our field of work. Adjustments in other taxes should be made to compensate for this increase.

 On the surface, it appears to be a benefit to business, but if consumers are the big spenders to get us out of this
 recession, then implementation timelines is inappropriate. Certain exemptions will need to be incorporated into the system
 and this will make the system as confusing as the old FST I used to have to deal with many years ago.

 Newspaper advertising should remain exempt from the additional tax (RST)

 Property/Liability insurance is now subject to PST only. Insurance is GST exempt and the additional tax that we will have
 to pay for rent, supplies and equipment cannot be offset against taxes collected. The effect will be very negative and costly
 for us.

 This "harmonized tax is a tax grab plain and simple. Many of our customers are currently PST exempt. Many
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    13

 products/service not previously taxed will not be taxable. Zero consultation with business and taxpayers is typical of the
 attitude of governments not considering who pays their way and not caring how many times and ways they can tax the
 population. It's disgusting.

 I really wonder whether the policy makers have any idea as to the impact these changes have on small business and the
 reality of operating a small business.

 This tax grab is unbelievable and to present it as an administrative benefit to business is crap. I will do everything in my
 power to help defeat the government if it is allowed to go forward. I will even consider closing my business if it goes thru.
 First it is 8% then it will be 9 then 10. Are we all so stupid that we can not see this? Are we so stupid that we can be
 bought by the Province for some silly little one time rebate? I could go on and on but this is the straw that breaks this
 camel's back!

 We are an accounting firm, and many of our clients will be affected. Please keep the rules simple with minimal, if any
 exemptions. Allow as much as possible to be done automatically by the computer program. In my experience people make
 mistakes, or forget the rules. Forget about the large corp. exemption.

 It costs small business owners to collect tax on behalf of the government and normally when you provide a service for
 someone (in this case the government) compensation is made. I feel that we should get compensated for tracking sales
 tax owing, collecting the funds and remitting them. Especially since the banks charge a fee (Scotia bank) for making any
 remittances to the government.

 Big tax grabs - Lower the rate to 11% or whatever level to make it revenue neutral.

 The single tax on new home construction should be eliminated. It is one of biggest industries and adding 8% cost increase
 will be extremely damaging to the industry especially in our current economic state and one I personally think will be hard
 to rebound from. At least raise the limit from 500,000.00 to 1,000,000 as I do not think 500,000 is a realistic number.

 It shouldn't be implemented at all. It should be scrapped. There is nothing wrong with the system we presently have.
 Consumers are having enough trouble trying to keep up with things without burdening them with this thing.

 Provide precise details on which items are exempt or are ITC applicable. This was a problem with the GST.

 This is good for business and the economy as long as it doesn't get messed up and complicated with special interest
 exemptions, rebates, etc. I came from NS and this was a relatively painless and great transition. Given how poorly the
 implementation of the GST was done in terms of public understanding leading to acceptance, I believe this to be the
 biggest risk here - misinformation and special interest pontifications rather focusing on the benefits - more equitable tax
 collection, simplified systems, less administrative burden. All assuming, of course, that the exemptions, point of sale
 rebates, etc. don't end up wasting all the benefits. Deal with the potential of hardship through other existing mechanisms
 such as rebate programs to low income families and leave the harmonized system to work as designed - universal and

 This combined tax would've been a great idea when the GST was launched. Now, so many years ago, we already made all
 the process and software changes and absorbed the costs to work with a dual tax system. To change now is just a
 pointless distraction. Hopefully it will benefit somebody other than the government bureaucrats.

 Scrap the idea completely

 Does it really matter? They are going to do whatever they want to do. BEND OVER AGAIN!

 In a time of an economic downturn this latest tax grab from the Ontario Government is appalling. One only needs to talk to
 the residents of New Brunswick to hear how expensive it is for the people. However this government makes it very clear
 that it has no respect or regard for the people of Ontario. Hopefully the next election will show them.

 It should not go into effect

 It should correspond as closely as possible to the GST

 Estimated cost to implement is unknown at this time.

 The membership overwhelmingly approved the single tax during the debate over the introduction of the GST.

 1. Start at year end. Mid year is crazy! 2. More details on how it will work well ahead of implementation 3. Raise $30k
 minimum for small business or underground economy will grow rapidly
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                        14

 I don't like this tax change being introduced without having it approved by the electorate. If the Liberals were planning this
 change, they should have campaigned on it as a key platform.


 Will affect the sales of products currently being installed by our operation. Previously only GST was charged on
 installation... with the change GST and PST not only applies to materials but also the labour costs associated with
 installation. This will equate to an overall increase of approximately 3% on total sales. This will be born by the customer.

 If we have to have single tax system it needs to be transparent, meaning it should be on customer invoices. NOT HIDDEN.

 Pure cash grab. When GST implemented, MST went from 13% to 7%. Where's reduction for PST given they have
 broadened the base significantly. This is not well thought out. Who raises taxes during a recession?

 When GST came in excise taxes on Gasoline were decreased by 7%, so the new tax did not raise the price of gas. Ontario
 has not indicated it will reduce its excise taxes. This will result in an 8% increase in the price of gas. This is new revenue
 for our tax and spend Liberal government. It is not fair.

 Try to clarify sales and purchases to and from other provinces without harmonized tax. I am getting many concerns from
 my Alberta customers.

 we do not need change in current times we are in a recession do not need extra expense

 The new Provincial tax should be modeled exactly after the GST to avoid any confusion on what it should apply to.

 The country should have a flat tax for every dollar that changes hands with no rebates. This would make the simplest and
 fairest way to do it. I think there should be more reform in how our dollars are spent.


 It is going to cost me business. My prices will have to increase at a time people can't afford an increase. Very bad idea for
 many reasons, at this time.

 I remit GST on gift certificates when they are redeemed, not when they are sold. I'm curious as to how the remittance will
 be handled after the new changes (@13%) for certificates purchased before the changes (@5%).

 I always have resented being an unpaid tax collector and always will. If the government wishes to compensate me for my
 time then I will have a more cooperative attitude.

 Don't know enough about it.

 There should be a large tax incentive to all companies that collect this tax. One that is collected monthly, not on annual tax
 returns. Collection and remittance should be made as simple as possible.

 It should be totally eliminated and included with the cost of the product - this would totally eliminate the underground

 It should be accompanied with a one percent tax decrease.

 Forget how it should be implemented. It should NOT be implemented. Period. I am very angry about this. I will never
 support that government again. Ever.

 Have reasonable resources in place to manage the change - telephone support/web articles etc.

 How does it relate to currently exempt retail customers and exempted business operations? How would this work example
 Vehicle warranty claims etc? Is this double or triple tax or does it only apply to the end user.

 We currently only charge 5% for our services... this effectively increases our rates to the customer by 8%!

 Raise the new home construction limit by at least 200,000. There is not many homes built today that are less than
 400,000, this is going to impact my new construction sales

 Needs to deal with the exempt provision of rental apartments appropriately by allowing increase in rents or zero rate the
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      15

 product. Also take into account the increase in cost of new housing either rental or bought in light of the current economy
 and Ontario's ability to provide cost effective housing to allow competitive wages in other jurisdictions.

 It's elementary. Doing one thing is always going to be easier than doing two things.

 We sell to Natives that are currently Provincial Sales Tax exempt. What provisions will be made for them?

 I’m not impressed with the premier ramming this down our throats. He won't get my vote next election

 Firstly we should be compensated fairly for the administration of the tax. GST gives us nothing and PST compensation is
 not enough. Secondly a fair amount of tax credit should be implemented for the start up of this new tax system. Cash
 registers, computers, software costs all come from our own pockets, and therefore we should be compensated accordingly.
 I spend more time administrating taxes, laws, and all of their bureaucracies instead of running my own small business.
 This is not right. Please let them know what we're faced with. Thank-You.

 Overall I believe this new system will be much simpler to deal with, however I strongly agree that the Government should
 continue to compensate fro the collection of the taxes.

 First of all, if this is to be the undertaking of one agency ... the tax rate should be less ... as two agencies will not be
 required to manage it and overheads from one of the agencies should extend a benefit to the contributors. Refunds of GST
 expenditures for goods and services that retailers are expected to pay now take up to 6 months to filter back to us. It is
 scary to think that it will now take this sluggish agency twice as long to forward the refunds. I think it is pretty arrogant
 that this 'change' was 'sprung' on all of us. Bureaucratic mumbo jumbo ... putting these slower than time lazy assed civil
 servants in charge of my 1/2 million dollar investment in my business which is almost going down the tube.

 It doesn't sound as bad as I thought it would be. We produce farm produce, don't charge GST and are PST exempt on
 most inputs. The new ITC refund would be about the same for us.

 An exemption should be given for professional services/fees derived from labour.

 I think changing is a big mistake for everybody all round

 More information required about RST exemption for those buying our goods for retail.

 We are an agri-business. Presently are except from collecting or paying PST. Concern with impact on customers having to
 pay additional 8% on all purchases and wait months for reimbursement.

 We do a lot of shipping. At this time, we charge GST only on shipping. Also, we ship out of Province all the time, Does this
 mean now that we will have to charge HST in these 2 situations? If this happens, it will be a rip-off for the consumers.
 They should leave it the way it is. The reason the Ontario Gov. wants to implement the HST, is because it will be a cash
 cow for them, taxing things that were not RST'd before.

 I am concerned that you haven't asked about how I think this change will affect consumers buying habits since they will
 have to pay 8% more for many good and services, or to the government in lost taxes to what will certainly be an increased
 underground economy.

 We should have been asked for input as citizens it does not effect me as much as others who are finding difficult during
 these tough financial times cost of homes, food, clothing are they going to be affected by the new tax grab? if they are
 God help those that are struggling now and they are mostly middle income and small business owners like ourselves which
 the govt. has ignored and or forgotten for a long time.

 DEFINETLY will hurt seniors on fixed income. Good for business - bad for people Increase on utilities (heat/hydro/etc) is

 My agricultural business will decrease-horse stables will have to charge 8% more after tax and this will decrease their
 clientele, therefore reducing my Ag. sales. Complications and increased tax-in prices will slow down and decrease in store
 sales. This also comes at a time of rising prices due to weather problems.

 Keep it simple.

 The overall rate should be reduced. It's ridiculous to maintain the provincial sales tax portion at 8% when it will apply to
 many more products and services.

 All businesses should be fully informed of items exempted and/or included in the new sales tax structure. We should be
 compensated for the time involved in record-keeping and determining amount of tax to be remitted. This can become a
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      16

 very time consuming aspect of small businesses.

 as a massage therapist it is rumored again that we are the only health care providers that will as usual have to collect this
 tax, we are a female dominated profession that are going to be directly impacted if we have to collect this tax.. I am ready
 to give up on my small business as I feel it is so unfair for my clients that pay good money for this service to be taxed on it
 even though they are trying to prevent becoming a tax burden in the future by receiving massage therapy..(Most small
 businesses that do not have coverage for drugs etc) use our services to self care instead of self is a direct hit
 on them...and it is taking away from people that do have coverage. They will simply have to come less as now more will be
 going towards taxes for these services. I am very opposed to this tax as are my colleagues

 I don't like this idea one bit. Our customers will be even more upset paying an extra 8%. I hope CFIB takes a stand
 against this idea! This is one of the main reasons I joined this organization.

 I think it shouldn’t happen I feel its a bad move for Ontario We are already taxed to the maximum

 I don't sell anything. Charges should not apply.

 I believe that the single tax system should not be implemented at all. It will turn into a huge tax grab. I do not believe that
 it will be beneficial. The measly bribe paid to low income individuals will not make up for the huge increase in taxes paid by
 individuals and will affect direct-to-consumer service businesses negatively. Furthermore, it will dramatically increase the
 underground economy. It is a vast and massive tax grab put in place by a premier who promised not to raise taxes and
 then implemented the health premium (not a tax!). I do not believe a word he says.

 Would be better for us if it didn't happen. currently our service is pst exempt

 Just charge for items and services already subject to PST. We provide services that add GST only. An 8% increase in our
 fees is monstrous. If I thought I could get that I would have increased the fees already! This is an undisguised tax grab by
 a spendthrift socialist government.

 Over 95% of our sales are outside of the province... yet our manufacturing and suppliers are usually from within the
 province... This harmonized single tax does not seem simpler. We currently do not levy the PST on over 95% of our
 customers; now we will be expected to?

 I have a farm and would like the new tax to be applied like the PST so that the item that I buy as inputs into my farm
 would be zero rated so that I would not have to pay the tax and then apply to get it back like I do now with the GST.

 We will pay the taxes on materials we purchase which will be an increase of 8% of additional cash flow consumed for
 approx 30 days. My opinion of the single tax is the only benefit will be to the government ANOTHER TAX GRAB in the worst
 economic climate in history. Total greed to pay for incompetence

 While I recognize the political inevitability of this tax harmonization stemming from the seemingly endless need for money
 by the Ontario provincial government, there is no way to reduce the impact on our business. We will be dealing with
 unhappy customers who are being forced to pay an additional tax.

 This government is killing the retail business. I do not expect to be able to continue operating.

 Ample advertising to prepare consumers.


 A single GST is bad enough, now we will have to collect even more tax for nothing in return.

 Big uncertainty with regards to sale of insurance!

 I am completely opposed to this single sales tax. This must be stopped. It will hurt many businesses in a time when the
 economy is already hurting. I don't see why I should collect more taxes just to be reimbursed later. It doesn't make sense
 to me. If the government wants the businesses to collect more taxes, the businesses should be compensated with a
 percentage of the amount collected.

 Should have been done long ago. There is legislative confusion around whether some of our services should be PST
 taxable. This will increase our prices but cut the confusion and hassle.

 With an all time high unemployment rate, I can't believe that the government is putting this extra tax load on consumers
 and expense to implement it with small business. It really makes the "common folk" realize that government has no idea
 what go on in the "real" world!!!
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     17

 Given the nature of our business, I expect it will be simple to implement the new sales tax - effectively, it will be merely a
 rate change (from current 5% - we don't collect PST - to new 13% rate). As a result, we have no suggestions or comments
 that would minimize the implementation impact on our business. In other words, for us, I believe implementation will be
 very simple.

 Feel strongly that tax should be priced-in to all retail products. The price you see on the shelf is the price that is collected
 at the cash. If mandated across the board this would remove a lot of the pressure that we get from customers wanting to
 "pay cash and not pay any tax".

 This harmonization is nothing more than smoke and mirrors to line the government's pocket by bleeding more tax dollars
 from individuals and families, who are already suffering from the current economic crisis in Ontario. I oppose it completely.
 It will kill the already suffering retail sector. I hope Dalton is planning to funnel his winnings into the EI fund.

 I cannot think of a constructive way to minimize the impact. I have been asking customers what they think of it and the
 general response is that if they are paying tax on more items, and at a higher rate, the bottom line is that the money the
 gov't gives them to help is a one time benefit and the tax goes on forever. Bottom line: much less to spend on things that
 are not necessities. Retail will go down due to the psychological impact even if we are given rebates.

 Give it some thought before actually implementing, if changes are made after implementation notice should be sent to all
 businesses. Make it simple to understand.

 13% on my product sold will be an impediment to sales since the old system worked out at 10%

 That would be simple.... just eliminate the damn thing!

 This is going to help business given that it is simpler. Also, it will decrease costs in the short term.

 I feel in the first two years, the new HST should maintain the existing GST exemptions, such as tax on services and
 repairs, housing, professional fees. These items are not PST taxable presently. I feel the biggest impact is on the private
 consumer. Once the transition is in place than start to add the new HST on various items that are appropriate. I believe it
 will be a huge problem in the private sector and lead to a bigger underground economy.

 The new single sales tax system should NOT be designed at all. This is just another tax grab to pay for all the blundering
 errors of our government.

 We are a commercial printer. The RST is very cumbersome for us as some things we print are exempt and some are not.
 Sometimes things are exempt if resold and other things are not exempt if customer the end user. The best system would
 be to have the HST charged on all goods without any exemptions to keep things simple. My understanding if that the
 existing exemptions would continue which just makes things harder to administer.

 This single sales tax will make accounting much simpler (& more understandable for the consumer) but it will create more
 "underground economy"...which in my opinion is the demise of government!

 Presently most of our customers provide us with a PST exemption certificate as our products are used to help in their
 manufacturing process - will something like that be implemented with the single tax system?

 I'm not sure how the new system will control the underground economy. This new tax in my opinion will just send more
 small businesses underground especially in my the renovation business it is already quite a serious problem for us to
 compete this will only make it worse.

 There is minimal RST collected in our industry. Will likely add confusion for customers. Could not read background - file

 I am in the personal service industry. We have already been hit with the downturn of this economy. This is going to
 increase my services that I offer to my clients by 7 percent. I see our business losing income because of this tax

 This will end up being a tax grab by the provincial government. Items that weren't taxable before i.e. hair cuts dry
 cleaning will be taxable with the GST portion. Dalton do we really need another tax? You said you wouldn't raise taxes!!!!!

 I feel that this new tax will have a severe impact on our sales. I also think that several businesses in our industry (funeral
 services) will close because of this new tax.

 This will cause a serious affect with the consumers. It will amount to an 5-8% tax grab
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                          18

 As a hair salon owner, I would have to increase the price for my services to cover the cost of business and my clientele will
 not appreciate the increase especially in these economic times. I am not impressed by this new tax.


 As a large manufacturer of supply only and supply and install contracts, having gone through 2 RST audits at a cost of
 $150,000. I have been dreaming about this day for 20 years

 a single tax rate is a very good idea, but 13% would hurt our already suffering economy, a 10% tax rate on everything
 without the extra costs of rebates and the use of only one tax collector would really boost the economy

 What the common family does not realize is that this combination tax will cost everyone plenty of money! Great timing to
 implement it, in the middle of an economic crisis when people are just barely hanging on. Another bold faced lie from
 McGuinty. How the Ontario people were stupid enough to vote him in a second time is beyond me!

 Keep the rate the same as GST, we are currently pst exempt. Our customers will pay more for the same service.

 Currently for farm use purchase RST point of sale exemptions allowed but GST ITC 1/4ly claimed - how will HST work
 (cash flow worry for small farmers)

 Consumer price resistance will be extreme and could hurt sales of service and service plans and products that we sell.
 Depending on the product the consumer will generally be paying $200 - $1500 more in tax and on large projects even
 more. This could hurt company sales quite significantly.

 What about our current pst exempt. We have many wholesale accounts.

 In my business I have to charge GST and PST on all parts and labour transactions. How do I handle customer's who are
 currently PST exempt does it work the same way? I can see this as another tax grab for the government.

 Currently, we use a bookkeeper to remit RST; the $1500 annual compensation pays for them to collect the gov'ts tax. Our
 costs would go up, since we would no longer be compensated. Also, we run an ISP, the internet rates would increase by
 8%, which can hurt local business. As well, since most of our payments come to us from credit cards, our fees for them
 will also increase, leaving us with less profit. It will cost us another 3% on top of the 8% to collect their tax, and the gov't
 doesn't want to compensate us? The actual changeover is not all that complicated, it is the costs of these credit card fees,
 and the man hours to change all automatic payments, as well as explaining to the customer why they now have to pay so
 much more for internet. It is not difficult for us to send in 2 returns, one for the GST, and one for the PST. We are not sure
 what businesses are clamoring for a blended tax, but it isn't us, or anyone we know of.

 As a mechanical contractor in the residential, commercial, institutional, industrial field this puts an 8% price increase on all
 our invoicing because RST was not applicable before on real property work but will be going forward. Labour makes up a
 good portion of that work and is now taxable. For the commercial, institutional and industrial it becomes an input credit, in
 and out transaction. However for the residential customer it becomes an 8% increase in their cost of living with no
 recourse to recapture.

 This is another tax grab & gov't is certainly securing their jobs with many more pension $ & health care dollars then a hard
 working individual will ever receive.

 My business is a service industry only. No products change hands. This should be built into the system to allow the one tax
 charge only.

 We do not totally understand what will be required. We have two different customers that we manufacture our products
 for. The agricultural and industrial sectors. Pst is exempt from agricultural and we collect both taxes on industrial. We are
 also currently exempt from Pst when we purchase equipment for our plant. It will mean we tie up more cash until the
 money is refunded. We also higher business from the outride, to do our electrical and plumbing needs. This will be an
 additional cost for us doing business in Ontario.

 I am currently awaiting (for the past 9 months) a ruling on GST changes for charges in my sector from last June 2008.
 Since we don't even have this ruling yet it makes the ruling all that more critical for the upcoming changes.

 When FST was in effect it was possible to get a tax exemption certificate on products for resale. It might be an idea to re-
 visit the same scenario to reduce the cash flow impact on any company that purchases product for resale. Example - YTD
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    19

 2009 - I have paid out $111,057.50 in GST on products for resale, With the new HST System - I would have paid out
 $288,749.50 - That's $177,692.00 extra that will come straight out of my bank account, which is where I pay my Vendors,
 Employees etc... You get my drift. A Resale Tax Exemption certificate would eliminate the direct impact on my monthly
 cash flow.

 The focus of this survey is mainly on the implementation of the new tax system. Our real concern is the increased costs for
 services that are currently not charged RST. We are actually pleased about merging the two as RST is extremely difficult to
 apply as there are so many exceptions to the rules. We can call and get 3 different rulings from the RST office. Our
 company handles many types of transactions and the costs to our business to comply with RST are very high due to so
 many case by case situations of how the RST is applied or not applied.

 Information sharing of how the new system will work and to make keep it simple because it's not just the accountants and
 business people who are affected it's everyone.

 Love it long awaited.

 Best way would be to just eliminate one of the taxes all together... do not add the two together.

 I now have 2 tax rates. 1 for retail sales and 1 for installed products for own use. How will this change. More info is

 The current exempt products need to remain exempt from both taxes; it will be too expensive for consumers & families.

 Because I am a supplier of a product that sometimes is a fixture and sometimes it is not, and that the consumer is also
 confused, this will significantly help in simplifying our sales transaction process. I expect a huge savings and an increase in

 Compensation needs to be reinstated

 Why should it cost me to be a collection agent for the government? I have to Pay someone to administer the collection, set
 up a new tax account to ensure that when the government want to be paid, I have the cash flow, or I will be fined, and I
 have to pay to administer the payment....Once again , tax grab, with no compensation for collecting or administering
 ..........where to I sign up

 Keep the system as it is. A single tax is a crock.

 We are a mom & pop operation - this tax change means a lot of work in a short amount of time (literally overnight as we
 are retail) - very time consuming & confusing - so far we have had no direct correspondence from any government agency
 such as RST or GST - will this be left until the last minute? Will there be penalties for improper/late reporting if the new tax
 is implemented? It also means more UPFRONT costs as we purchase from our suppliers before we can recoup an ITC - we
 can't afford this delay in cash output/cash sales receipts.

 Have no positive input for this additional burden of tax. We are totally opposed to it. We have no choice but to co-operate.
 Let's make damn sure this tax is totally visible and hopefully some day there will be an outcry against government
 mismanagement of our tax dollars.

 Business; Will likely not make much difference Personal; Other than big ticket items there will not be much difference.

 Reduction of 2% in the overall tax i.e. 11% tax instead of 13%.

 I anticipate more customers wanting to do "cash" business thinking they will save the taxes. In construction that is
 currently 5% GST only, which we sometimes have to "eat" to get a job. We are too big not to claim the "cash" deals so the
 customer wins and we lose. The 13% tax will drive the underground construction economy even further, customers
 perceiving they will get a better deal with the little guy working under the table. We can't compete with someone who
 doesn't charge or collect sales taxes, pays no WSIB premiums, no source deductions and has carries no insurance. The
 government should make the customer/owner (who technically becomes the constructor?) accountable for the taxes
 owing, same as they do with businesses for WSIB, for instance. That will make people think twice before hiring under the

 This would add increased costs to people selling a home, there are enough costs already for the seller to pay in order to
 transfer ownership of their largest asset.

 In our business we are at the level of activity where the gain from the deduction of tax inputs more or less equals the
 compensation amount we currently receive and will now lose. For larger businesses the gain from inputs will be much
 greater because of the fixed ceiling on the annual amount of compensation and that will enable them to be more
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                         20

 competitive. Small business will lose out again unless the compensation is continued.

 Huge negative impact on our business and customers!

 I strongly disagree with the proposed sales tax as it proposed as it is a tax grab against the end the consumer. Many
 services now only charge 5% GST and are not required to charge PST. For most condominium corporations, this will
 necessitate an increase of fees of 8% to cover the increased tax. In these economic times a tax grab of 8% is excessive.

 Negative impact on cash flow as more tax owed on receivables.

 I wonder how it will affect farmers, status Indians, etc. who are PST exempt now for certain products. I would like to see
 EVERYONE pay, then claim it back themselves, rather than us being responsible for policing it.

 How do we treat out of province and out of country customers?

 I don’t believe that there will be any benefit, incentives, etc for retailers to do this for government to hide tax increases. As
 for retailers hiding the tax on product prices, that would be immeasurable dollars and hours of labor to perform, and brings
 the impression of a price increase, which will harm sales at a time when retailers can ill afford it. Why should retailers take
 the fall for the appearance of a price increase, for the sake of government saving face?

 It will greatly affect the real estate industry. Adding more costs to an already suffering industry.

 Detailed information on how the new single sales tax system will affect my firm directly, and on what products, if any, my
 firm will be exempt from this new single sales tax system. This is the least the government can do for my firm before they
 start collecting more money!

 We are in the funeral industry and this will add an additional 8% to all of our charges to families. In the funeral industry it
 is a total tax grab because everyone dies.

 This is a tax grab pure and simple. The rhetoric the govt. is pushing is false. This will cost dollars and jobs and once again
 prove that this govt. is more interested in consolidating its own power at the expense of those of us who earn the money
 they grab. We are making plans to move our head office and the 100+ jobs attached from Ontario as quickly as we can do

 As far as I am concerned the current system works fine and should not be changed - it appears to simply be another
 McGuinty "sneaker" tax grab

 It is my understanding that the single tax will capture more items (such as the cost of labour in construction products now
 excluded from the RST); therefore increasing revenue. This means that to avoid this being an indirect tax increase, the
 new rate should not simply be the sum of the present rates, but a lower one: say 12%.

 I have no idea what the cost will be to make the accounting changes but I suspect it won't be significant. I think our
 compensation in the form of ITC's may be adequate payment for collecting the tax. I feel sorry for our customers
 purchasing new furnaces for example and having to pay the additional tax. Currently we don't charge RST on the sale price
 as long as we do the installation. I need further clarification as to how the system might work -

 Although I sent an email to the Premier's office re this tax I received a nice letter some 6 weeks later that did not respond
 to the question I specifically asked. I'm afraid I have little faith in governments because they are only out to make money
 for themselves. My question to them was: As a business purchasing supplies and now having to pay both taxes on
 purchases are we going to be allowed to subtract our purchases from our collections when we submit our tax to the
 government or are they expecting us to pay the full PST collected like now.

 It already has a minimum impact as I would expect that it would elsewhere. If the government would spend more money
 flushing out the underground economy our whole economy would grow exponentially

 Change is good for improvements. How many people will the government remove from its roll by this implementation?
 What issues will this create from the different levels of government try to split the money from one pot? Every day we here
 about the money not getting to where it is suppose to. Positive results should be seen or heads should roll. Change for the
 sake of change brings know value with only expenses in it wake.

 The only reason this is being done is because the Ontario gov't. Figures they can get their hands on more of our money.
 I'm sick to death of taxes and public sector workers at all levels who make astronomical amounts of money. 400K a year
 to run a lousy little hospital, millions to run Hydro One, this whole thing is so out of hand I'm surprised the country hasn't
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     21

 I am strongly opposed to the notion of a combined tax system that adds any new costs to the consumer. Implementing
 this system during the current economic meltdown could not come at a worse time and is irresponsible.

 with a lot of cash business people the underground will benefit--additional sale tax will hurt our business

 Working in the manufacturing sector, most of our material purchases are PST exempt. We have not seen any indication as
 to what will happen here. Adding an additional 8% tax to these items will certainly force an increase in price to the end

 exempt professional services or labour-intense businesses

 First of all, the Liberal government claims that CFIB supports the HST - they also claim the CME supports the HST - I have
 personally spoken with both organizations and neither supports it at this time in its current form. I think it is shameful and
 irresponsible that both the CFIB and CME are not fighting tooth and nail to INSURE that if the HST is going to be
 implemented that there are ABSOLUTLY ZERO ITC restrictions because I will promise you that the gutless and disgusting
 Liberal government will try to limit as many ITC's as possible because they have no idea how to run a fiscally realistic
 business. This HST issue is a ticking time bomb and I hope and expect that the CFIB show some courage to and bring to
 light the shameful nature of McGuinty’s pathetic cronies and their inability to show a modicum of truth when presenting
 HST. It is a tax increase pure and simple in it current form.

 A simple, transparent and universal VAT is the best tax of its kind. I would prefer a lower rate and no exemptions at all. As
 an exporter, this is a winner for us!

 Get rid of it

 Labour is a big concern! I feel the transition will not be easy for us

 The harmonized sales tax is a significant threat to the travel industry. Not only will it result in decreased sales, it will make
 Ontario based travel businesses less competitive viz-a-viz out-of-province and international Internet vendors.

 The additional funds needed to pay the tax will come at the expense of clients existing budgets which will not increase
 which effectively means we take home less for doing the same work.

 Although this plan is okay for our small business personally, this is a bad move at a worse time in Ontario. Expect the
 Liberals to lose big in the next provincial election.

 Support all programs that makes government simpler. They should simplify income taxes to just one tax rate and no
 deductions and grey areas.

 More specific details need to be released. For companies in large industrial/commercial construction there are specific PST
 treatments for attachment to real property (projects quotes PST included, GST extra) and for change in use rules (self
 assessment) in manufacturing/processing. Is it to be assumed these difficult PST issues disappear with the proposed one
 tier tax with tax charged and ITC’s? If this is the case it appears that this is an exceptionally good change for construction
 and manufacturing?

 Simpler is better, as long as they don’t waste money splitting the pie between the province and feds, I'm all for it.

 It is a cash grab by the Province and service industries such as ours (real estate sales) previously having no provincial tax
 will have a public backlash at us for the additional costs.

 I am 100% opposed to the HST. This province is in difficult economic times, and such a massive tax increase is the last
 thing we need right now. I encourage the CFIB to lobby the Federal Government to delay the transfer of funds the province
 would require to implement this change until after the next provincial election - thereby delaying the implementation of the
 HST and letting Ontarians decide at the polls whether or not they will accept this massive tax grab.

 Keep it simple! Who gets the tax credits? Right now pst goes to minister of finance, and GST goes to revenue Canada, will
 business have to pay both taxes for inventory when they only pay GST now? Need more information on how this will work
 for business first

 Going to add 10-13% to our costs due to inclusion of additional taxable services for our insurance business

 Harmonization is just a tax grab; it screws consumers, takes their money and then gives it back to them just before an
 election. Don't do it.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     22

 not sure how this new tax will relate to Indian Status being exempt - to me if no longer exempt this would be the only
 positive I would see in this new tax

 definitely need to be compensated in the way that we are for RST at present

 This combined tax will be more costly to ad minister. We don’t collect RST only GST which is simple.

 There should be few or no differences between the rules for GST and HST...differences can make the collection process
 much more onerous and require much more significant changes to systems

 We are currently PST exempt on the purchase, rental, repairs & maintenance of our equipment (used in manufacturing
 logs), so with the HST we will be charging our customers more tax (currently only charge GST), and really not have any
 additional Input Tax Credits to claim. Also of big concern to us, is that we will now be required to remit 13% sales tax
 (quarterly in our case), and often times we are remitting tax for invoices that we haven't been paid for yet.

 Unless I do not understand it correctly, this will be horrible for our business (custom picture framing). We only pay GST on
 our inventory when we buy it. We'll now have to pay 8% more on each item. It will be absolutely devastating because we'll
 have to mark up customer order that much more.

 This is going to adversely affect real estate sales in many ways. Sellers currently pay ONLY GST on commissions’ they will have to pay an increased amount. Sellers AND Buyers currently pay ONLY GST on Lawyers' fees.
 Now they will have to pay both. This is going to encourage more people to go For Sale By Owner and also encourage
 Sellers to relentlessly attempt to save money by cutting the percentage of our commissions. I am completely and totally
 against this new initiative.

 This is the biggest tax grab in recent history

 Severe cost to our business- do not charge PST on installed products we sell now-- Instant shock by homeowners at price

 Set up the system so that items which are now exempt should stay exempt. Don't treat this as additional money grab by
 the government.

 It should be dropped.

 It should not be implemented. This is a tax grab by the Ontario government to cover up their inability to control costs and
 the timing, trying to recover from a severe recession, could not be worse.

 The province should be prepared to compensate us for our out of pocket costs in time, money and lost business to make
 the transition. Alternatively, the province should relieve us from the duty to be tax collectors.

 What about our GST payment/refund that we report quarterly? Or, like PST, will we report (and pay) monthly. It is already
 very difficult for our small business to come up with the money every month when in fact, we have not yet collected what
 we have billed to our clients. Currently, fuel in Ontario is PST exempt. Is it going to remain so? Or, is this just another tax
 grab for the Province. (Who am I kidding)? Currently, the premium on our Insurance is GST exempt. Is everything going to
 go up in price? Currently, Labour billed out in the construction industry is PST exempt. Is our business is going to owe
 more tax (PST) at the end of the day? Will we, like Newfoundland (currently on the HST system) get to claim back all of
 our HST paid? Please feel free to contact me as I am very interested in further discussing this issue. If you are looking for
 representatives of small business to sit on a panel, I am definitely interested.

 First, the total rate of 13% is far too high. The GST should be completely eliminated as it was introduced as a temporary
 measure and has outlived its purpose. The PST should be decreased so that the general public has more disposable income
 to stimulate the economy instead of padding the pockets of our wasteful governments, which only encourages them to be
 less accountable instead of being responsible. My other concern is that if they say there will be $500 million in
 admin/compliance savings, then they need to be held accountable to that and need to cut costs accordingly. An
 independent audit committee needs to monitor this and ensure it happens. If it doesn't, those who have made these
 statements need to be removed from office.

 As a medical product importer, we are required to pay all taxes prior to entry into Canada. In Ontario medical products are
 not provincially taxed nor do hospitals pay provincial taxes. It should be interesting as to whether the hospitals will make
 the change on existing contracts. At this time with all the different challenges businesses are facing, the implantation of
 HST can only increase those challenges. The true costs are hidden within the companies. Our company is growing but we
 have placed on hold the hiring of 3 new employees. Instead, we have hired 2 short term contracts. One full time employee
 to be hired has been delayed to the fall and the other 2 full time positions have been placed on hold indefinitely. To sum
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                 23

 things up; I do not believe under today's current economics situation that there is any easy way to minimize the impact
 the HST will have on our business.

 Any change is a cost that we can not recover!

 Currently colleges buying and paying GST cannot claim any Input tax credits but cannot recover the tax from students in
 the form of GST, since these are exempt - this is not a fair practice and will be worse with the HST

 CRA should allow 60 days (from the applicable period end) to make HST remittances rather than the current 30 day GST

 The single sales tax will be more efficient and simple, BUT 85% of my business is B2B. That means we are moving cash
 from one company to another with no economic gain to the Government, my client or my self. The PST was exempt on
 B2B if goods were resold. The remaining 15% of my clients will now see an increase of 8% on my fees. My input tax
 credits are so insignificant because I am a labour based organization. 95% of current costs have no RST. The only benefit
 is if I spend money on new computer equipment. My costs will go up. I am always late with GST now, so my int. &
 penalties instead of being on 5% will now be on 13%. I will also loose 3% of the 13% collected to the banks in card fees
 when clients pay by cc. Recommendation 1) get rid of the B2B charges & only charge to the non-GST registrants.
 Ultimately they are the only ones paying in the 1st place. 2) I would prefer that they drop the whole system completely
 both PST & GST.

 I would need much more information to know exactly how this will affect our business. I would like to have answered "I
 don't know" to the question asking how much I think it will cost to implement this new system.

 No comment. I abhor a tax on advertising of any kind. The tax makes it's way into the products being sold helping to put
 prices out of reach to the most vulnerable

 Based upon what we have heard and read, we only see disadvantages to changing the system.

 I am still for proper explanation on how it will work What it applies to

 Our company is in the consulting business and the new harmonized tax system means we will need to add 13% instead of
 5% to our invoices. Because of the competitive nature of our business, we cannot raise our fees enough to cover the extra
 8% we will have to charge our clients. This means the extra 8% cost will go directly to our bottom line and reduce margin.
 It will also put us at a great cost disadvantage when bidding jobs, especially against other consultants not based in Ontario
 and for clients in other provinces and countries, where a lot of our business comes from.

 This is a tax grab and should be stopped. The EXTRA tax on services and other areas that are currently pst exempt will
 really be hurt

 As I understand it, GST is supposed to be submitted on the basis of a billing date as opposed to when the cash is received.
 The time of billing relative to the receipt of cash normally takes a minimum of two months. The greatest time difference
 between billing and receiving cash related to a federal government contract where payment took slightly more than a year.
 There are times when I cannot afford to pay the GST in advance of receiving payment -adding an additional 8% to that
 payment requirement is more than onerous.

 There are a great many under-the-table competitors in my business (house cleaning) that will have a big advantage in
 their pricing once I have to add another 8% to my customers' bills. Since there are so many additional services that will be
 adding the tax, why is it staying at 8% and not going down to reflect the increased taxes that will be collected?

 This is the biggest tax grab since the introduction of the Health tax Premium - both done by the worst premier in Ontario
 history. When Atlantic Canada made the change, they at least reduced the combined rate to make the system (relatively)
 tax neutral. There is no talk abut that now. His comments about taxing items that are GST free (such as insurance) are
 absolutely insane.

 Do NOT implement it!!!!!!!!! It is going to have a detrimental effect on the service industry. We are paying too much tax in
 Canada as it stands!

 I am a lawn care business. Not only had DNC list affected our business, pesticide ban and now this will also hit us. Is
 Ontario trying to lose all small businesses that hire seasonally thus causing much more unemployment???

 The main problem for us is that we provide pst exempt riding at our indoor track and unless we change the pricing the
 addition of pst will be a significant price increase

 "Ontario portion only: For 5 years and phased out over next 3 years, limited or no ITCs for spending on energy (except
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       24

 where purchased by farms or used to produce goods for sale), small vehicles, telecom, meals and entertainment for firms
 with taxable sales above $10m" this is a huge problem for any transportation company such as ours, and for our
 customers (we distribute petroleum). Any restriction on ITC claims is inherently unfair! This also adds complexity. The
 GST at present is relatively straight forward while the ORST is quite convoluted. But full ITC claims must be protected!

 Not having had the time to really take a close look at this I cannot be specific, however in reality this is not a time to
 increase taxes at all, and no government anywhere in the world makes such changes without there being a real bottom
 line benefit to the tax removed from society and business. I believe the CFIB should present its members with a clear
 verdict on the proposed reform, as I am certain that individual business owners like myself are not politically motivated
 enough, nor have the in depth skills to determine such facts.

 As long as the same rules apply to all businesses in Ontario and some groups are not allowed to have special signing for
 tax exemption as farmers are now I think the new tax would work. If farm groups were able to sign for partial exemption
 as they are now for provincial tax the system would not be fair to the rest of businesses in Ontario everyone should pay
 the same tax.

 we currently have up to 30 days to remit GST on invoices, as the economy slows, clients are taking longer to pay us but
 we have to pay the GST regardless - if would be nice to have a deferral mechanism for slow paying accounts

 Unless the rate is adjusted down to be revenue neutral (accounting for any additional rebates and tax credits) this is just a
 huge tax grab. As well, the entire PST system and all related staff must be terminated as a condition of the PST program
 being stopped to assure that there is some benefit to the tax payers.

 Why not do away with exceptions charge flat rate on everything and reduce the overall tax. I know too simple some
 government people might loose their jobs.

 Any rationale that says the single tax will lower costs to the consumer is false. The increased ITC will only help businesses
 cover the cost of collecting and administration involved. The consumer is the one that will carry the burden and because of
 that, an industry like ours will likely see decreased sales

 Security business is stuck in between both taxes. Sometimes we pay PST on certain items for resale & others we don't.
 The question is Real Property or tangibles. What will happen with the one tax system? Do we as Security product installers
 pay both taxes on purchases & not charge our client or vice versa. We will need directions before the change comes into

 This a poorly thought out tax for the service industry and what moron would do this during the worst economic downturn
 since the 30's?

 The Government needs to compensate business for being their tax collector. This is an extra time burden that we as
 business people take on for the government. There needs to definitely be a compensation plan to cover off necessary
 expenditures required to make the system changes to properly collect the new tax.

 Tax harmonization is good...adding items to be taxed is not... Do the former, but only include the items that are currently
 included in PST. If we want to add items to be taxed, we need to deal with that on it's own. The Provincial Govt. is trying
 to slip in extra taxes. Most people in the province do not see this extra tax grab, and the government is being dishonest in
 its presentation of their initiative...

 Will not have a great impact on my business. Primary concern is that businesses will use this change as an opportunity to
 increase contribution margins and will not lower prices to fully reflect the removal of the PST. The RST rate should be les
 than 13% (i.e. the provincial portion should be reduced from 8%) reflecting the fact that the tax is levied on a wider rang
 of goods and services and the fact that the tax change will not be revenue neutral because prices will not be lowered to
 fully offset the added tax burden.

 A reduction in the blended rate to 11-12% might make it more palatable.

 My main concern is with the legislated DMF for the hotel industry. Their initial report estimated that a 3% province wide
 DMF would create a $100 million marketing fund, now they have cut this to $40 million. This new found money was
 presented as a direct benefit for the Tourism sector to drive tourism revenue in all sectors. We have always paid the same
 8% tax that every other business in Ontario pays and will receive the same input tax credit as every other business. To
 say that the additional 3% collected must be offset by the input tax credits, really amounts to nothing more that a tax
 increase and cash grab by the province. If they really are sincere about the need to develop the Tourism industry as an
 economic driver for many business sectors, then they should ensure that the full amount of the legislated tax increase
 intended for the DMF does in fact go to the Tourism fund. If not, leave the Hotel tax at 5% and let us collect and
 administer our own fund which we can ensure will be properly utilized.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       25

 Stop the Presses, as this will be far more expensive to both Business and clients than exposed. IF this costs my ON based
 business big money, I will re-locate quickly, as my business is National.

 It shouldn't be implemented period! Along with Mr. McGuinty having his hands in our pockets with the tire stewardship
 program, it's like he wants more people on welfare.

 At present Property insurance both personal & commercial are subject to 8% RST. The harmonized tax will increase their
 Insurance cost by an additional 5% in an insurance market that is already facing significant increases.

 1. I believe it will promote more underground economy particularly in the Construction, Vehicle repair, Renovations. etc. 2.
 As an Income Tax accountant, most of my clients will not be able to write it off. 3. Famine hygienic products, children's
 clothing and other items currently exempt should remain so. 4. The LCBO, Brewers warehouse are definitely going to take
 advantage of this when it comes to sales to licensees (I also happen to be one) and raise their basic prices. Any time
 Government Controlled items get a chance, they always do. The Bars & Restaurants will also use it to gouge the public as
 they did when GST came out when in actual fact; booze became cheaper because of the input tax credit. If this bill is
 implemented as I think it will be in the Food & Beverage industry I feel that the harmonized tax should be 8%+5% NOT
 10%+5%. Let the Province bite the bullet on the extra 2% they will not get. After all, they won't have to pay Audit staff
 will they. Look at the money they will save there.

 Why do those Feds and Prov not just have a consumption tax and get rid of the PST-GST forever. That way the
 underground economy will end up paying tax as they spent their income. A single tax on every transaction would make a
 lot more sense than the bureaucracy we have to put up with now.

 The Harmonized Tax should be reduced to 10% maximum. If they're collecting it from a lot more sources, the percentage
 should drop.

 At the moment, I still don't know enough about it. We are in the renovating and building business and we fear it will slow
 our business down even more than this recession if we have to add another 8% on the total price.

 Ontarians are the ones really getting screwed, as they will now have big tax increases on services.

 It’s not only the time it will take to get set up. The major cost is in the business I will lose for a time it take for people to
 get comfortable with the new tax they will have to pay. I only charge GST now so that means my prices go up 8% across
 the board. People are not going to like that. It’s hard enough for bigger company to compete with business out of the
 home they just made it even harder. We appreciate it very much thank you.

 Ontario government should not have created new exemptions and should have reduced tax rate (especially in recession)

 Ample and appropriate compensation for calculating and preparing all the paperwork associated with the collection of the
 harmonized taxes. Losing the RST compensation would not be fair or just for doing the paperwork on the government's
 behalf. Clear and concise instructions/guidelines, expectations, rules & regulations in the hands of the retailers (in print
 form and not just "available online" on a self-service basis) well-before the implementation date. Easy access to CRA
 personnel, via a telephone system that is easily accessed, to directly and personally deal with any questions or concerns
 regarding the harmonized tax system and reporting paperwork questions or problems. Compensation for the changeover
 for the retailer that is fair and equitable for the inconvenience of changing internal systems and paperwork.

 This idea comes at a very bad time in this countries economic climate. At a time when we are struggling to keep and/or
 build our businesses we are hit with additional tax burdens and administration that distract us from working on our

 The tax should be reduced to a total of 10% to compensate for changes to be made and the system to be maintained.

 I have a painting business and it is difficult to price against the underground and this will make it more difficult to get
 residential painting so I am against this new tax grab

 Insurance premiums are high enough without adding additional costs of GST -

 I believe the decision to replace the RST with a VAT is a good decision and hope CFIB will support it.

 I think it could be a lot of work to get ready for this change. I think the consumers will be unhappy. Taxes are way too
 high already; I guess will be working until August now before our taxes are paid.

 Currently, we pay GST every three months and pst monthly. The biggest problem would depend on the time factor to pay
 RST as receivables stretch over 60-90 days and would seriously limped cash flow.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      26

 Rather than find ways and means to raise taxes yet again, why don’t we cut the cost of delivering services? It might be a
 novel concept but it might work.

 This tax is moving in the wrong direction from a public policy perspective by extending tax to services, which generally
 speaking are better for the economy and environment than goods.

 We sell our products (potted plants) to grocery stores and garden centers. We charge only GST at this time. I'm not sure if
 the higher tax rate will hinder sales or not but my assumption is that it probably will be a factor in how much consumers
 decide to spend for our products at store-level and obviously not helpful to us. My other concern is that the government at
 all levels but particularly the provincial government is just terrible about getting information out to businesses about any
 kind of changes. There are so many questions about how this tax 'reform' is going to work. Where am I going to get
 answers? I guess my biggest concern is for consumers, myself included. I am particularly concerned about the added tax
 burden especially on gasoline. We will now be paying a full 8% more on most of our purchases and a small rebate cheque
 is not going to compensate for that. To be doing this is the middle of a recession is pure stupidity.

 We often buy products PST exempt for resale and some of our products are sold PST exempt for Example products used in
 manufacturing or shipping. How would we handle this in Future?

 Everything should work the way the GST currently works.

 Because previously RST exempt products will be now be taxed, the provincial tax rate should be adjusted accordingly.
 Decide on a taxation system and rate and stay with it. I'm a small business so I can more easily adapt to these changes,
 but each change presents a significant amount of work and costs for the larger businesses.

 Do not imbed the tax in the selling price. Separate line item

 We have no details of what is happening; at this point it is all speculation! Details of the change are required.

 Both governments know how much money they want to collect using the GST. Exemptions are for political reasons only
 and only serve to complicate the system. The governments should lower the tax rate and tax everything. Why an
 exemption for children's clothing or food under $4? Politics!!! Lower the rate and tax everything, Canadians would see as
 many price reductions as increases and the net amount of money out of Canadians pockets and into government coffers
 would be the same. There would be no confusion and the cost of compliance would be drastically reduced. The cost of
 government compliance police would also be reduced.

 The tourism industry has already been hit hard by all of the economic, health issues, passports and add to that that we are
 now no longer an affordable destination!

 Rather than adding an additional tax to categories that only have one tax now, go the other way: remove all taxes from
 categories that currently only have one tax. For example, rather than imposing RST on services which is only currently
 subject to GST, make services non-taxable.

 We sell training programs which are currently exempt from the PST. Adding an additional tax will only make it harder for
 the people who need training to be able to afford it. To help my business training services should be exempt.

 I think we are bogged down enough with paperwork that is in many cases ridiculously time consuming and make work
 projects for govt employees. Is this how McGuinty keep people in Ontario working? Did he see this as an opportunity for us
 to pay for his mistakes with e-health? It's frustrating...


 It'll be bad for the economy as far as the timing is concerned. Its additional taxes for many people to bear unnecessarily.
 It amounts to a tax grab.

 Don't have it! My rates will go up by 8% which could result in less business. Correspondingly, if I try to maintain my rates
 with this tax, I lose 8%. Can't win.

 While I grew up in the Netherlands the taxes where all in the retail price. It was much more pleasant for consumers and
 tourists because the sticker price was the price they paid.

 I do not know how this will affect other provinces, but I do know that I will lose Canadian customers, therefore revenue
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    27

 and taxable income because of it. I am a consultant and only have to charge 5% GST. When my rates go up to 13% I
 expect that the customers I have out of province will stop seeking my services and it will be equally as hard to attract new
 customers. I cannot estimate the dollar value to convert over, as it will include lost revenue. I am totally against this single
 tax system, and feel once again, it is the government making things easier for them at the expense of small business.
 Thanks Mr. Harper and Mr. McGuinty.

 At least bare minimum Funeral Services are a necessity not a discretionary cost. A minimum amount i.e. $3000.00 should
 be tax exempt to assist those unable or unwilling to spend more on funeral arrangements because they do not have a
 choice as to whether or not to deal with the basic costs related to a death and disposition of the body. At $3000.00 the
 consumers cost will jump from $150.00 to $390.00 with no increase in value for the consumer. For those choosing
 traditional funeral arrangements, i.e. $7500.00 the tax will jump from $375.00 to $975.00. We all know that the GST
 brought in revenues far in excess of the old FST and the same will happen for the Ontario PST moving to the HST. The
 reasonable actions of a compassionate government would be to: 1) Have a reasonable minimum cost that is tax exempt;
 2) reduce the Provincial Tax rate from 8% to 5%.

 The underground economy is fed by illegal immigrants and unscrupulous "ghost" consultants. As licensed immigration
 consultants with the Canadian Society of Immigration Consultants (CSIC), Canada's regulatory body, we have tremendous
 additional expense. No doubt, this will put a lot of legal immigration consultants out of work. We will have to pay more to
 CSIC to support that Society and have fewer clients. It will have a tremendous negative impact on our business, our
 industry, and the economy as a whole.

 I believe this is a big tax grab and I believe in the end it will make a larger government to manage this and refund people.
 Why not lower the tax level to make us more competitive with other provinces and countries. I believe in the end it will
 cost businesses more. What happens to the RST exempt status for horticulture and agriculture? We should be given a
 credit for the work we do collecting taxes for the government.

 We should fight this single tax. It will cost more for businesses to buy and to sell. Customers already complain bitterly
 about paying so much tax and this will look like more and in some cases will be more. We will all pay more tax!!!!

 I don't understand why the government thinks this will be easier. It's just a tax grab so that they can get 8% on a lot of
 items and services that aren't currently taxed (labour, etc).

 Please be sure that no changes are made until the system is in place and complete. Also, auditors should be very flexible
 the first year so that businesses are not penalized for honest errors.

 The Labour portion of our jobs to date is not subject to PST. Nor is our Labour to provide Service to correct a problem. The
 new Tax is simply going to Increase costs to the Customer by 8%! At least that is my understanding.

 The government lowered the GST to end the underground economy and now they are just making it worse with this new
 tax. Charging on food under $4.00? Come on are we that destitute as a country? If we are I say stop foreign aid!!!

 Bad for small business-just another tax collection gimmick by the Government.

 For minimal impact, scrap the new tax plan. Increasing provincial tax revenues has me convinced we have the wrong type
 of government.

 We don’t like this tax for all service sectors as it will increase costs across the board for end users and we in effect become
 tax collectors for no real compensation.

 Our business, which is Professional Service, will be a huge increase in the amount of tax collected (a new tax revenue
 stream) as we have not collected Provincial taxes on our services. In my opinion the tax rate should be adjusted
 downwards to make it Revenue neutral due to the broader tax base. Also from a Cash flow perspective, in our business,
 financing monthly operations will become more difficult as our Cash Reserve for taxes will have to be increased and
 without corresponding increases in Operating Line Credit we will have a more difficult time expanding. Any business which
 extends credit to its customers, as we do with builders, developers, contractors will be faced with this problem. Although in
 principle we may be extending credit for 30 days, we are often not paid for 60 to 90 days, and longer. When there is a
 Credit Crunch with the banks our operations can be greatly hampered.

 We are a mid-sized seasonal campground and this single tax will not only further harm tourism in Ontario with the
 additional 8%, it is another tax grab by the McGuinty government - in this time of economic hardship where everyone is
 watching their spending can only hurt the small businesses even further!! An election to get him out of office would be

 This is going to hurt my business as we were exempt from the provincial tax before my clients see this as a price increase
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                        28

 and some have already indicated that they are going to cut back on their advertising because of it. This is just a money
 grab by the provincial government.

 I have a lot of problems with small purchases (made by us) where the required information is not on the cash register
 receipts. The scale for what is required needs to be revised especially as gas prices keep increasing.

 I believe the single tax is going to be harmful to our business and economy

 We leave next to the American border our Gasoline is all ready taxed way higher the Americans if we add another 8 % to
 out gas WE will just send more people over there to buy there gas

 As we are a service provider with only a GST requirement, this places an unwanted additional tax burden on all of our

 The remittance process should be streamlined so that it is easy to calculate. The GST process currently for our business is
 very complicated and requires 2 to three days of effort each quarter. The government should pay us for collecting it on
 their behalf. The PST will add additional effort to an already frustrating process for which we receive no benefit.

 I have always thought that vendors should be compensated for collection of all taxes, including GST, PST and source
 deductions. Also, books should never be taxed as these amounts to a tax on self-education and personal improvement.

 I hope all farming will be exempt from this as without them we have to import all of our vegetables, etc. Why does the
 single tax = the total of the RST and GST when now we are exempt. Shouldn't the combined tax be less?

 Very curious how this affects the agricultural sector. I am concerned that what farmers were exempt for in the past will not
 be under the HST.

 I am a Retailer in the Cycling Industry and there are a number of Exemptions of the RST for complete bikes under $1000,
 and for related safety equipment. It took years to get these exemptions, and less that two to end them. Very Sad. Do
 bicycles not count as a small vehicle?

 Keep it simple!

 I do not believe that service based businesses should have to charge sales tax.

 No idea - I run a health clinic, so some services are tax exempt and others are not, so this tax could have a negative
 impact on my sales and customers.

 The industry that services manufacturing in Ontario should be exempt. WE are already struggling to survive and adding
 5% to our charge out rates could spell disaster for most of us. We will have to eat the difference in our rates which have
 already been reduced during this difficult time. That 5% represents more than half of our projected profit margin for the
 next several years.

 The inclusion of wide services that were previously exempt from RST creates big problems for businesses selling
 professional services online. The majority of revenue goes into wages and margins are slim. We will face a 13% price
 disadvantage, because international competitors are able to sell online to Ontario consumer’s tax free. Forcing
 international businesses to collect local sales taxes would start a round of retaliatory extraterritorial tax enforcement that
 would make exporting online more difficult, so we would like to see human-provided consumer services exempted -
 including legal advice, editing services, ESL and language services, private tuition and tax preparation. The services sector
 is providing the strength Ontario needs to cope with the auto crisis. Penalizing success and innovation to bail out
 multinationals that failed to innovate and only have themselves to blame is very bad for morale, both for our staff and for
 the culture of innovation in the province as a whole.

 What about native Indian exemption, are we to assume they will be exempt from this new tax and if so how will the
 government make up for the shortfall in GST.

 At this time in this economy status quo would be the thing to do, the business environment is very unstable and I don't
 think anyone knows what the future holds so I feel this is dangerous tax implication timing until we see what the future

 It is still not clear. What tax (5% or 13%) will I charge customers that order in other Provinces - Alberta for instance?

 Ensure that homeowners for new homes are compensated with an appropriate tax rebate for the extra 8% that builders
 and contractors are required to charge on services they render for building new homes. If this is not provided, the new
 single tax system will cripple an already depressed market.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     29

 We purchase pst free, because 99 % of our clientele are farmers. I'm waiting to see how it will affect farmers, as this will
 hugely impact us.

 Single Sales Tax will harm business. Services we provide currently are GST only. Adding an additional 8% will drive
 customers to purchase services online from out of province where they won't be charged any tax.

 I am still not clear on the impact. I think they should make it very simple for businesses doing under $10M business per
 year. We are a rental and service business with ongoing issues/battles/interpretations regarding current RST. "Anxious" is
 probably an accurate state I/we are in.

 Very disappointed that the government would bring this tax in as we are in the midst of a tough recession. Now is not the
 time to say the least! The fact that this was a surprise is further puzzling.

 Our cost of services which represents 50 % of our business will go up 8% to the consumer. I say leave well enough alone.
 The system is working as is. If it isn’t broke, don't fix it! It becomes another huge tax grab and that is the only reason
 politicians want this change. It has nothing to do with saving money for business. Thanks.

 It would be nice to think that a reduction in the Ontario portion [8%] to a lower number would be desirable and more
 helpful to the Ontario economy than this combining of already high tax rates.

 This is an extremely bad time to increase the amount of taxation-any increase in taxes means less money that consumers
 have available to spend. A purchasing consumer will help to bring us out of this economic downturn.

 We do not pay pst on items we purchase for resale. Now we would have to pay 8% more. That is a serious impact on cash

 we should be going to tax included pricing - just got back from the UK and it was great to see a price and know it's the
 price - plus a lot less change, most things were 4, 10, 25 pounds.

 Require details i.e. gasoline/fuel/natural gas/electrical/freight/taxes (property) Services(industrial) Food/Clothing etc.

 Since we are a service based business the single tax will increase virtually ALL our prices!

 I do not like the transition period of 5 years for ITC's such as energy costs. First we have to develop systems to identify
 these, which defeats the purpose of simplifying things Secondly I worry the Provincial Gov't will not live up to their
 commitments and like Quebec will extend these temporary exceptions to being permanent.

 Compensation for collection should be mandatory - and the $1500. Limit is not sufficient. I believe we should be
 compensated for collecting all of the taxes - withholding included. The unfairness of collecting these forms of taxes for free
 and being penalized an exorbitant rate for late filing strikes me as barbaric. We recently filed withholding taxes late by a
 clearly defined and explainable oversight but absolutely no consideration was given. If I dealt with my clients in this
 fashion I’d be out of business!!

 healthcare shouldn't be taxed, nor should any kind of preventative medicine supplementation

 The nature of my business requires me to post the total price of my service including taxes. Most of my competitors do not
 need to do this. This new Tax makes my product appear that much more expensive than before, as they can price it before
 taxes. I fear this will affect me and a very negative way as my prices will reflect an increase and my competitors will not.

 Although there are minor advantages for my business in harmonizing the taxes (slight increase in ITC's), this
 harmonization will have a major negative impact on my sales as well as my bottom line. 90% of our clients are currently
 RST exempt. This 8% additional cost that we must charge will lower our sales as they will refuse more estimates for our
 services. Also, our cash flow will be significantly reduced as we will have to remit these taxes before we get paid from our
 corporate customers. I anticipate that I will have to find a way to float an additional $4,000.00 per month (based on
 $50,000 of sales that are currently exempt from PST). For this reason, it is imperative that the due date for remitting
 these taxes be increased from the current 30 days for GST to 90 days for the proposed HST.

 Eliminate exceptions

 There should be a longer grace period to submit the tax, perhaps 2 months instead of one. If payments are late only
 interest should be fined NOT a "penalty". It is hard enough to survive in business without the government gouging us with
 extravagant fines.

 Cash flows would be my biggest concern. We pay PST now before we even collect it. Our receivables are avg. 60 days plus.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       30

 GST is only every 3 months so if it gets moved ahead it will put further strain on cash flow. I suggest remitting taxes after
 60 or 90 days in a business that is mainly done on account.

 We sell service and postage and this will add cost to our clients and may force them to find another way to conduct there
 business. Therefore reducing our sales.

 Clearly state what products would be except form the tax. I run an agricultural business and most of my clients are
 farmers who don't like to pay tax and now I have to argue a lot of times about the pst because all of my products are used
 for agricultural purpose but still sometimes they have a dual purpose.

 To early to tell the full impact. The major impact will be the price increase on my cost & reselling of products & services,
 and the effect that will have on my sales. Obviously the increased costs in operating a business will also have a negative

 You have not considered the impact on exempt businesses like ours which is education and also insurance. Exempt
 businesses as far as I know will only see their costs rise but will see no ITC's. I am strongly against harmonization not only
 as a business but also as a consumer.

 As I do not deal with the provincial tax now, the additional 8% tax will make my products and services out of reach for
 many of my current customers. To minimize its impact for me would be to continue to not to have charge the 8%.

 Still think it is going to cause a lot of headaches.

 We don't agree to this system in current circumstances as it will increase price when many don't have the job.

 This will be the largest tax grab in Ontario's history. It is going to hurt my business. I will be paying 8% more for
 everything we use, which will make me less competitive with suppliers from Western Canada and the US.

 Shouldn't be implemented at all

 It will be a huge benefit to us!

 General Comment: Tax is more broadly based; which in the long run should generate additional tax revenue. Why have we
 not heard any suggestions about lowering the provincial portion of the rate from 8% to 7% or less? Would this not be
 more palatable to the electorate, and provide better optics for the government? We haven't heard too much about revenue
 neutrality in this campaign. Perhaps this is not the goal of the exercise!

 How will this help MY business? It won't. It will increase my costs, simply because my re-sellers have NO incentives to sell
 my products. Adding 8% to our purchasing bottom line is terrifying.

 Increased tax on accommodation will cause further damage to the already weak tourism industry. The PST portion should
 not be raised, and/or out of country tourists should not have to pay any retail sales tax like it used to be up until a few
 years ago.

 There should be compensation for the remittance work

 If they make submitting the tax as similar as possible as the tax we remit now, paperwork gets difficult when it comes to

 The biggest impact will be customer’s reluctance to pay increased taxes on services my company provides, and it will
 definitely fuel the underground economy in my sector. I may have to go underground myself in some instances in order to
 compete - not something I do now, or wish to do in the future.

 In my business, sale and installation of water treatment equipment, RST is not charged to consumer. After, I will see an
 8% increase in prices to consumer. Ouch!!!!

 If in the future province (or federal) wants to lower the tax it will be difficult to implement

 The most positive effect would be the removal of all "Merchant Administered" exemptions. Such as Native, Farm, Resellers,
 etc. We all pay, and then claim our exemptions from Revenue Canada.

 My personal opinion is that if they would just apply the tax evenly across all items it would be simplified.

 The best way to minimize its impact on our business is to not switch to HST and leave them both separate. Note: our
 business provides services that are only GST taxable and does not have to remit for PST
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                   31

 It should be voted down. It is nothing but a huge tax grab and will negatively affect our sales!!! We are not in favor of this
 tax and cannot imagine why any business would want or support it. This will not get the Liberal govt. re-elected!

 1. All businesses should be compensated for the collecting and paperwork, as the current RST does. 2. All businesses
 should get a better remittance period than the 23rd of the month following as the government is also effectively borrowing
 from us with no compensation.

 We should not go to a single tax system; it will be a nightmare when dealing with other provinces. Don't like the idea at
 all. As it stands I could stager my remittances GST one month PST the next, and this was affordable. Now with both
 together, it will be hard to budget the amount, especially in these hard economic times. Don't like the idea

 I don't think this tax is necessary, even if we currently do sell using GST and PST. Our personal items will go up, gas, food
 and other items that were not dual taxed. We are taxed like crazy in this country. Lets just leave well enough alone.

 As my business provides mostly services that are not currently taxed this will have a net impact of an 8% increase in cost
 to clients- I anticipate that in these tough economic times I will suffer a decrease in business and therefore a loss of
 income! Great planning for a further economic blow!

 Not only is this hard on some business' but I think this will affect our economy as well. It’s already bad it doesn’t need to
 get worse. I don’t understand how hard this is going to affect children’s wear and all of the items that are exempt form
 RST right now. (This is all my business sells.)

 My American customers will have to pay the extra 8% which could affect my future business with them.

 In my sector, we shouldn't even have to charge the combined tax, only retail stores, etc.

 I have a small janitorial services business that will cost my customers alone an extra $500,000 from the RST portion of the
 harmonized tax. Most of these clients are condominium home owners. This is a tax grab for the provincial government that
 is not being addressed. A large portion of consumer spending is on services which will have this additional 8% tax. CFIB
 should talk about this. This will hurt the economy.

 It should be reduced so our fees are not raised to our clients by 8%.

 Gasoline and all Homes should be exempt. Otherwise it is simply a veiled tax increase. It will be easier than the current
 system for business, but having more money flowing out of the private to the public sector is not acceptable.

 This tax change is another example of Canadians being "taxed to death". We should not be paying additional tax on things
 that were not previously taxed. Does the government think that we won't notice??

 If they want to combine the rate should go down, especially since the GST was only supposed to be a temporary tax

 1. Must have Export manufacturers exempt 2. If not exempt, offer credit towards identified manufacturers. 3. If not either
 1 or 2, Charge the Government 3% interest from the day the excess money is forced to be paid out. 3. One of your
 questions is not accurate, as my current export products do not contain embedded retail sales tax, but they will contain
 the HST that I will have to request from the government to give back, costing my small business money and time. -- "what
 are the beneficial aspects of the single tax for you business"...”My Firms exported products will not contain embedded
 retail sales tax"

 We are looking forward to it. Will simplify our practices greatly. Only concern would be the transition and how to deal with
 work in progress.

 I currently lease a lot of production equipment which is PST exempt. With the new tax it will increase my lease costs by
 8% which is a direct loss business unless I can increase pricing and stay competitive.

 The CFIB should do everything in it's power to squash this unfair tax grab. It is not a benefit to businesses like By the
 scope of the products planning to be included in this bill it put an even further burden on the end users, the citizens of
 Ontario. We do not need more taxes. If this is to go ahead the rate needs to be reduced to at maximum, a revenue neutral
 position and even better it should be reduced much like the feds have done under the Harper government.

 We currently sell a product line to churches which receive RST exemption. There has been no indication as to how this will
 play out a year from now. Also, the GST, when introduced, proved to be real windfall for government. That's why the
 provincial Liberals are choosing to switch to a value added tax. Therefore, we don't see why the provincial portion cannot
 be lowered to 7% from 8%.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       32

 It can't be minimized. We currently do not need to charge RST and we will have to do so. Our ITCs will go up, but so will
 our remittances. It will impact our cash flow since remittances may be due prior to payment being received from the

 abolish this idea I think its wrong

 We estimate loss of sales to be about 20 %.

 I am hoping that contracts that extend the implementation date are still accepted as valid for my customers. Our contracts
 can last up to 6 years and adding 8% to that would be a real loss in business.

 I would like some facts regarding food sales, ice cream cones, frozen yogurt, specialty coffees, fudge and candy. The cost
 of serving one ice cream cone with increased taxes and the minimum wage is a worry I may have to close my business.

 Claims of embedded layers of RST cannot be substantiated for my business and I do not anticipate any input cost decrease
 only an increase in paperwork and oversight for export sales

 I am concerned with the PST portion of my inventory. Will I get credit for it?

 The months approaching the transition date will affect overall sales because customers will want to wait until July 1, 2010
 to make purchases so they can receive a 13% ITC rather than a 5% ITC.

 It's a good idea for business, more expensive personally. Overall it is a good idea to get rid of the PST auditor as they are
 a difficult group to work with. GST auditors are great to work with.

 PST assumes that in 23 days all PST owing has been received. Some of the unpaid amounts are significant. Ontario
 government should move to less frequent collections or longer periods such as 3 months for GST. Vendors should not be
 funding the government especially when there is no payment for collecting the tax.

 Have Retail Customers submit their purchase receipts for HST collection by CRA?

 I am very disturbed that we will be having an 8% increase in our pricing in this economy. Currently my customers pay no
 PST on their services. This will negatively impact my business and make it one more year that I can't increase pricing to
 make up for increased expenses. It is really hard to make a living with the government taking all of our money.

 Given that services will be tax for the first time, thereby increasing revenues, the combined rate should be reduced to 7%
 from 13%. Limited exemptions should be available to reduce the impact on low income individuals.

 The net additional cost to our renovation clients will be approximately 5% - for exactly the same services as now. That's a
 tax grab!

 Minimize earned income and maximize spending to reduce consumptions and go greener for future generations.

 Does this mean the Status Indians are now tax exempt? You will be taking another 7% out of my operating cash if you are
 modeling everything after GST. On $2mil in inventory between my stores you are taking $140,000 in my working capital.
 This is undue financial pressure as I would have to borrow the money, if I am able, to make this adjustment. With all the
 "savings" the government should be able to lower the tax rate to 8-9%. They should not get an increase in taxes under the
 guise of cost savings. We are now collecting their Eco tax...I see no accountability for it or where it is being spent. It has
 turned out to be another big tax grab that is being dumped down a "big black hole".

 We are a real estate brokerage and currently only charge 5%GST on our service to customers. This will have a huge
 impact. On an average $500,000 home this new tax will cost our client an additional $1,250 per transaction. Businesses
 that provide only a service should be EXEMPT!!!!

 Question - How will this affect manufacturing since production related equipment is presently PST exempt?

 I do not have to charge PST on labour currently with HST, prices would jump 8% this certainly will not improve sales and
 will increase the underground economy if people can save 13% on work being completed

 How often is the RST remitted? If not monthly, the amount of the cheque would be quite large, resulting in a cash-flow
 problem for our small businesses.

 It should be known with some accuracy the impact on revenues this single sales tax system will have and reduce the base
 of taxable items accordingly.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     33

 All of my comments were made on a previous question regarding the rates of the tax. Other than the rate, I am very
 happy with the new tax system. Personally, when the GST was brought in to replace the old FST, I was in favor of taxing
 groceries, and having the initial rate at 5% instead of the 7% we ended up with. Then we could have gone down to 4%
 later. Then the bleeding heart liberals got wind of taxes on groceries, and they had to raise the rate up to 7% to make up
 the lost revenue. I would be OK with doing that now, and having a new tax in Ontario of say 10%-11% on EVERYTHING -
 no exceptions, zero ratings, or exceptions.

 Services should not have the added burden of an additional 8% tax. It will be very hard to initiate inflation rates for
 services provided as well - in order to keep a small business financially stable in this economic climate. People will start to
 cut back on non-essential services which is what many businesses, like mine (primarily) are. The single tax system makes
 me very angry and frustrated with what I consider to be a "money grab" by the government. The dual tax system
 currently in place is NOT a burden in terms of paperwork and administration. The government should leave well enough
 alone. To now require every food item or service provided to have an additional 8% "overall" price increase to consumers
 is ridiculous, insensitive and cruel.

 This will probably put me out of business. I struggle now because in this economy my business is seen as something that
 people can do without. The extra 8% will probably be the turning point.

 As an agricultural enterprise we presently only charge GST and now we have to charge the whole tax and it will increase
 the cost to our customers. Can we claim back the provincial portion of the tax? Can our customers claim back or can we be
 100% from GST and PST. Maybe we should be.

 Keeping it the same as is it is now is the best answer

 Don’t implement it!!!!! I currently only charge GST for my service and product and the cost increase will make a huge
 negative impact on my business because my clients won't want to spend extra.

 Leave it as it is.

 Forget about it. It is not welcome in our industry, and I am not pleased as a consumer about having to pay 13% on
 everything I purchase! We are in a recession; the last thing we need is higher taxes at the register every time we make a
 purchase. Can you kill us any slower???

 It should come in at 12% to ease the blow and to be able to calculate it more easily. 13% is difficult to calculate and

 Change the programming in two cash registers and make one change in our accounting software. I really don't see any
 major difficulties.

 The now system should be based on the current PST system


 The new RST should be applied to all vehicle sales regardless wither they are purchased from a registered dealer or private
 consumer otherwise you strongly favor consumer to consumer trading and penalize the consumer if he buys from a dealer.

 As veterinarian my prices will have to increase across the board 8% with a significant impact on the cost of services, much
 the same impact as the implementation of the GST in the beginning. I would like to see vet services exempted much as
 other professional services will be exempted from this tax.

 They should eliminate the combined sales tax.

 Should only be sent in 1 or 2 times per year.

 We sell used goods and structural products and at this time do not add PST as they are used or fixed to building. This is
 just a cash grab form the government. It will NOT help my business as we already re competing against the states and
 other provinces that do not charge the PST.

 I believe for our business it will eventually be better. But as a consumer, it will cost significantly more to live at the same
 level that I do now.

 Should be compensation to merchants for collecting, as well as a one-time relief for converting cash registers, POS
 systems, software, training staff, updating accounting packages, etc.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       34

 Cancel it- this tax affects 90% of the sales that run our business. With the recession, competition for sales has become so
 tight that another unavoidable 8% in cost to our customers is ridiculous- I'm not sure that the few people who are buying
 will be willing to pay the extra 8%. I worry that it will cause another slump in sales as consumers adjust to the fact that
 many goods and services will cost more, no matter what. I know this doesn't answer how to make it better- I'm just so
 frustrated I could scream.

 I understand new products will be subject to tax: such as groceries. In view of the recession, I feel that necessities should
 not be taxed. If more things are being taxed the tax rate should be reduced to 10 % or so not 13%

 Are we going to be Charging HST on sales in Alberta? If Yes we just lost 100,000/ year in business

 more paperwork

 This is another example of an additional tax grab by our Provincial Gov't!!! (& it is a great idea to do this during a

 It should not be implemented

 Antiquated, sanitary napkins-their wives should wear rags.... children’s shoes????? Class, an education, how barbaric Ann

 The considerable shortcomings of the single sales tax with regard to items under the current system not being taxed while
 being taxed under the new system should be considered and explored. Essentially, it would appear that the impact of
 government is increased and monetary freedom is decreased.

 Minimize exemptions and exceptions.

 Am totally against this new tax grab! Mr. "I will not raise taxes" McGuinty should not proceed with this. The only design
 should be a cancellation of this plan.

 Will impact our sales to house contractors, and all goods currently installed in customer's houses. They will have to pay
 more to compensate for the new harmonized tax rate.

 This is a totally unfair tax grab; I hope that the CFIB will fight this with all vigor!

 it is critical clear instructions are provided at least 6 months before July 1st 2010

 The new combined tax rate should be lower and governments (both) should learn how to survive with less.

 Tourism establishments need exemptions. HST plus possible Destination Marketing Fee adds up to 16% tax on
 accommodations. Out of country visitors will revolt on these new taxes.

 Keep Provincial Government members from dictating how tax will be shown at retail level. IE- statement that tax be
 included in prices shown on price tickets. They want us to accept responsibility for the negative impact of their decisions.

 Placing additional tax on food supplements and drugs that are currently PST exempt will place a burden on the consumer
 and our business. The 8% is a tax grab of immense proportion and should be carefully reconsidered.

 The impact of the HST on the administration of my business is negligible. I do expect there to be a decline in overall
 business in late 2010 as consumers realize that they have less money due to the significantly expanded scope of products
 and services that will now attract an additional 8% in cost. I believe that it will be enough to extend this recession an
 additional 3 months or more if we have not fully recovered by then (which we will not).

 The transitional rules should be released as soon as possible so businesses understand the impact of agreements that are
 made before July 1, 2010.

 We are a custom cabinet making shop. Having one tax would benefit us by not having to calculate our portion of the RST.
 We have to pay for it monthly right now and the formula is complicated. We have heard of cabinet making shops not
 remitting enough and having to pay in the thousands of dollars in back taxes. As we hope we would have to pay from the
 amount on the invoice.13% or less we hope.

 For businesses it will decrease their costs. For the end user and organizations that do not qualify for GST ITC's it will
 increase costs. It appears that the Gov't is in favor because it will increase income. The simplification argument is only
 minimally correct.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                   35

 For me, it just seems like it will increase the costs of doing business & the amount I remit to the government. I don't see it
 being of any benefit.

 I am concerned about the tax as a primary food and live stock producer.

 This "one-tax" is going to kill the small business. Competition with cheap cash in hand business in my industry is hard
 enough without adding an additional 8% to the bill. I also do not know how we are going to handle the PST exempt, GST
 exempt and our international customers. Its really just a bigger headache then the small business needs right now.

 Allow farm purchase exemptions by showing farm business registration as is the current PST system.

 We call it a liberal tax grab again

 The last survey I informally conducted compared Alberta pricing to Ontario pricing on both taxable and exempt consumer
 goods. I found that exempt grocery prices in Ontario were overall lower in Ontario while taxable items in Alberta where no
 sales tax exists were overall 8% higher. In other words, savings were not passed along by businesses to the consumer. I
 speculate that the CPI will jump with the implementation of a Harmonized Tax.

 We are in auto repair sector; change will certainly re-start another underground economy, just when it was starting to exit
 from it. We provide a service to numerous USA based manufacturers; and this has already been looked at as a cost
 increase/cash layout. Along with dollar differential, this is another impediment to "sell the Canadian manufacturing base" if
 volumes warrant down the road.

 Virtually all our customers are PST exempt.

 I believe it should be brought into line with the GST. Going from 5% to 10% is something I might get away with but going
 from 5% to 13% as a consultant is suicide!

 This will have a sign fact negative impact on our business. We are a small counseling agency that provides service to many
 lower income individuals. AT $20.00, GST included, the families we serve find it difficult to pay this amount and it is
 discouraging to find that our government will now expect them to do more!

 This single tax will be a rip off on the consumer.

 I am in the health care under the regulated Heath act there is only 3 heath care services that have to charge GST I am one
 Registered Massage Therapist, by adding another 8% I have many confirmed clients that cannot pay the increase.
 Therefore will not come. On an hour Massage a Client pays 65.00 including GST with the 8% the price changes to 72.00
 big hikes I lose clients and receive less money for the increase.

 We are still unaware if the blended tax rate will affect the insurance products that we sell. Presently Auto Insurance is tax
 free for RST

 Under the present system 99.99% of our Sales charge GST only. Most of our materials are exempt RST. Our customers will
 see a much larger tax component plus an increase to cover all the RST on materials. I believe it seems like a double

 Should be a full rebate on the goods/services that were previously exempt from PST. No reason tax could not be
 harmonized but not expanded to additional items...

 I really like the idea of a single tax. Right now we provide both services and products and we look forward to the single tax
 to help simplify our process.

 Children's services such a sports should be exempt in order to ensure that parents are able to keep their kids active and

 Due to the move from 5 to 13% I expect to lose personal tax clients due to cost. I also believe the timing on this change
 to be insane. Just the same as when GST was implemented.

 I am not well enough informed to know the far reaching effects yet whether good or bad, but I m sure not interested in
 paying more tax.........

 If it's similar to remitting GST, not so bad to look after. It is just going to cost us all more money when the economy
 doesn't need it.

 Another hic-cup to running your own business
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       36

 I am very, very concerned about the impact on the underground economy. We own a marina and have experienced first
 hand the reduction in business due to this. I fear that this will escalate as everyone tries to save a buck.

 It's just another tax grab that only benefits the government

 Transition on companies with inventories will need to be explained.

 As a retailer, I am nervous about the "Point of Sale Rebate" on children's clothing, books, etc. I'm afraid of how this might
 be implemented and if my cash register system will be able to handle it and how difficult it will be to train staff. Also, we
 currently struggle with having different rules for PST & GST. One of the huge benefits of combining the taxes, for us, would
 be having only one set of rules. But if there are still going to be exceptions, then we lose that benefit.


 Veterinary medicine-not taxed by Ontario for service-will increase price of animal health care by 8%-will be difficult for
 veterinary clinics to increase fees due to normal increased cost of business on top of a new 8% tax.

 It will substantially increase underground economy. Legitimate businesses who do not participate in the underground
 economy will suffer.

 The rate is to high, the combined rate should be less than 10%; this is a major tax grab as the base is broadened

 Scrap it entirely

 We should be compensated for submitting this tax.

 Don’t change it from current system!

 If we knew all the details, it would be easier to answer, but I think it is just another tax grab by the governments.

 need more specific information about the process as soon as possible

 Do not change it in the middle of the year or better yet, do not change it at all.

 We are in the hospitality industry and this new tax is going to be a significant extra cost for customers that are already
 cutting back. This is definitely NOT the time to add taxes to businesses that are hurting. Plus there is a cost to implement
 the new tax and we are already struggling to stay alive. We are extremely upset by this.

 Currently we provide a service that can be delivered electronically so we don't have to charge PST. This will impact our
 service because all of our clients will have to pay the PST. This is quite simply a tax grab and not fair that we didn't have
 any input because it will impact us negatively possibly lose clients over it.

 if both taxes are harmonized you can bet the GST will never go away

 The increase in taxes on camping, accommodations and GST products like charcoal and wood etc. will affect our
 customers. Also, the timing is terrible for Canada and will be a huge inconvenience on our resort business. The
 implementation should happen in the wintertime, after Christmas season.

 In general the system will be a huge win fall for the province as they will be improving their cash flow position by collecting
 tax all through the develop and ultimate product sale cycle. It is pushing more tax on the consumer, as they will be paying
 the tax on services they previously were not required to pay it on. It will be an unpopular tax for that reason.


 As the base is broadened, taxes should be reduced. Instead of (5%Everything) + (8 % of some things) = (13% of
 everything), it should be lowered to a flat 10% of everything. It might be more palatable then.

 it should not be implemented, will reduce bottom line

 Is a greenhouse operation which buys its bulbs for the whole year in 1 1/2 months? When these shipments come in must
 pay GST right away and wait for remittance, if that amount goes from 5 to 13% will have a huge impact on cash flow

 I am in the financial sector and the GST has been a hidden tax on Investors that I totally disagree with. As well, I am
 amazed there isn't more of an uprising on the increased tax this will create for everyone, particularly seniors.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                   37

 Clients already struggle with legal Costs. The Ontario Government has a strong vocal position on "Access to Justice".
 Clearly identified as an issue is the cost of Legal Services, which the Government is now adding this tax to!

 This is NOT about "harmonizing” it is simply another Tax grab by the Prov. gov't disguised, as always, as NOT being a tax
 increase. I own a mini storage facility and I expect a large percentage of my customers will empty their units when they
 find out the storage space is going to cost an additional 8%. CFIB must fight this TAX INCREASE - because that is what it
 really is!!!!!

 We need compensation for collecting the taxes as well as a simple way to get refund on input credits.

 The single sales tax should be applied to every thing, except for all food and food ingredients, to make it simple even
 though some of the essential things will cost more but consumers will get used to it will get stabilized.

 I don't know enough about the new system to make meaningful comments.

 I plan to never vote Liberal again when this passes

 I am a bit unclear about this new system. Currently we buy our inventory PST exempt but pay PST on office supplies and
 equipment however with this new system would we get to claim that "PST" portion back as well as the "GST" portion then?

 It should be tapered, so it will easily be shoved up........

 I don't have 1 associate that believes this to be a good idea; it's just another large tax grab!

 The cost to consumers would be increased 8% which is considerable especially in an economy which is down. It will
 definitely be detrimental to my business and I will DEFINITELY take this into consideration when I VOTE!

 Our prices would increase at least 5% because we do not currently collect GST. I question if the government will use the
 extra revenue wisely from businesses that currently do not collect GST. In a lot of ways it seems like another money grab.
 Please remember the more we ask from the government the more it costs taxpayers and business.

 I am SOOOOOOO opposed to this tax!! If the general public only knew the impact on home repairs and upgrades alone,
 they'd be up and arms. I am fed up with being an uncompensated tax collector for the government, and am seriously
 questioning any desire to be in business, the rewards are few and far between, and the endless regulations from every
 angle are killing small business in this country. The underground economy is going to thrive in the construction sector, and
 of course, the response of the government will be to further burden legitimate business. Wake up!!! We are in the midst of
 the toughest times yet to come, this is entirely regressive, and what really needs to happen is for government of all levels
 to live within their means and be totally accountable - see Ontario's E-Health debacle for what NOT to do!! I'm just about
 at my wit's end, and really feel that this single tax will push me over the edge. I am totally fed up with government b-s.


 In the transportation industry this will put a serious strain on an already hurting industry in Ontario and put us at an unfair
 disadvantage to other provinces. But what else is new.

 What will happen to PST exempt customers such as farmers and/or Indians? I wish they would claim themselves and not
 make us responsible for that. What about tax on items for 'internal' use?

 This is bad for business, because my clients are now paying only 5% , now will have to pay 13%

 Stop the introduction of HST. Everything will become more expensive. There are absolutely no savings for businesses. All
 what the supporters tell are fairy tales.

 The only one that is going to make money on this is the government

 Only the government can make people such as us work for less then minimum wage as tax collectors.


 Tax must be visible to the consumer and not imbedded in the price of the product.

 more paperwork since we are in the agricultural sector & don't charge PST & now we will have to charge for it & apply for it
 back just like the GST
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                        38

 This will be the largest tax grab in Ontario's history. This tax will hurt the housing industry to point of not making it as
 affordable to a very large mass of citizen. I have a very large concern that this will heat up the underground economy so
 much that it will be out of control.

 It seems to me to be a tax grab. It allows the Provincial govt. to spread its tax to a wider array of purchases. Services will
 be especially hard hit. I would not of minded the single tax if it was truly revenue neutral. In order to make this happen
 the PST rate would have had to drop from its current 8%. I don't see this happening so it is an increase in total tax the
 people and businesses of Ontario will be asked to pay.

 When the GST was first imposed many retailers simply added the GST on top of the already existing embedded federal
 sales tax rather than backing out the tax thereby running up the cost. The new system needs to be implemented so that
 this cannot be done

 Currently no RST is applied to construction labour, I feel that adding 8% to an already shaky industry will lead to the
 closure of more legitimate businesses and fuel the underground economy. The result will be such that the government will
 not only lose the GST but the income tax as well. This tax increase is not fair to honest Canadians, and it will entice
 otherwise honest citizens to break the law.

 The HST on new housing is a disaster. A single price across Ontario makes no sense. In Toronto, $500,000 gets you a two
 bedroom condo! Every other province that has harmonized reduced the provincial sales tax number because it was spread
 over more goods. Why not in Ontario? The big loser is the consumer who will have reduced after-tax income which will
 impact all businesses. The assumption is that business will be better off is based on the assumption of no loss in sales and
 that prices will not be reduced as the consumer asks business to absorb the tax. Finally the underground economy will be
 helped substantially going forward!

 I presently just charge GST of 5% What happens to the extra 8%? This does not seem a tax simplification but a huge
 hidden tax increase.

 Without a doubt we need to be paid to collect taxes for the government. Currently, I have to incur the expenses involved
 in managing and collecting tax. If the government can hire services to plan and prepare x’mas parties then why on earth
 don't I get paid to collect money for them???

 Your survey was poor as it did not give me response options I needed. I could not download your background file. Please
 send it as an attached word file. Do the same with the survey as this format is too hard and time consuming to use. I
 constantly find you ask me questions about things I do not have a clue about yet or care that much anyway. We need
 lower taxes!!!!! Less govt. interference and more real help.

 Any benefit that might come from reduced costs will not be felt for some time due to the types of expenditures in our
 business (resort hotel). The customer will see an immediate increase in price which will carry on for some time. In
 addition, the 'extra' money earmarked for marketing in tourism is grossly understated in comparison to the extra tax that
 will be collected. In addition, some jurisdictions with a DMF will still need to have a DMF and others without one will need
 to implement one - which will mean an increase of 6 % (3% tax, 3% DMF) to many customers. The tourism industry is
 being lambasted here.

 Drop it. It is simply slighter of hand. This one "implements the GST" and weaves it into the fabric of the economic system
 instead of getting rid of this "temporary tax". That is why the gov't is trying to get it installed in our system. We voted NO
 when it was proposed. We should still be voting NO and get rid of anyone who keeps flogging it under any guise. This is
 one more brake on production. Increased production will increase the revenue the gov't gets but instead they penalize the
 producers and thus reduce production and then penalize more so that they get more. This tax will pretty much ruin my
 retail business. That is currently half of business, around 3/4 mil. This will also disrupt my already sticky cash flow and
 make the whole thing too much trouble to be worth it. The gov't will end up losing about 1/2 million worth of retail tax and
 the payroll taxes will all go underground from the guys that I fire. The line about not making more is BS. If you are voting
 for me - vote NO.

 This is another of our government’s dumbest ideas. The old saying goes. If it is not broken, don't fix it. There is nothing
 wrong with the current system. This is just another way for the government to get tax on absolutely every sale in the
 province. This will make the underground economy flourish.

 This is just a tax grab, it will hurt consumers in their pocket book, and gas will go up approx. 32 cents a liter that will drive
 all costs up, thus driving up inflation. The government just needs to stop the waste and they will have the extra money
 they need. With this recession it is not time to increase taxes. It will not make it any easier for business; it will not help
 with paper work. What is in place works and we have already had to pay for the last changes. They need to look more at
 this new Environmental fee we have been burdened with, it is more complicated than any thing they have ever done.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      39

 We are a wholesaler supplier to the food industry. We do not yet understand whether this tax will affect our clients or not.
 If it does, then we foresee higher costs to the end consumer.

 Will have to do further study

 It is going to raise my prices and lower my income....

 Our consulting business charges GST now. Jumping the tax rate 8% will cause us a $24,000 increase in our cash flow
 requirements due to the need to remit immediately rather than when we receive payment from our customers. A delayed
 tax due-date for the first 3 to 6 months of implementation would ease the pain.

 I have trouble understanding the benefits except to the Ontario government who now get to tax previously non-taxed
 items & add to their bureaucracy to manage the promised payments to be made.

 Simple...leave the system the way it is...cause its a tax grab to begin with...hydro...natural gas...etc...will go up a
 time of a recession????? McGuinty is nuts!!! I would rather spend money on a vote and get someone else in I’m
 sure that you understand that I don’t like it to begin I wouldn`t make a comment on promoting it!!!!!!!

 make retail stock purchases exempt

 Another product not included is the provision of custom software that is currently not ORST taxable that will now become
 taxable and the company will have to carry the increase as an accounts receivable

 I work in the insurance business. Will HST be charged? If not, we get no input credits. How will out of province or US sales
 be handled? Is this a cash grab???

 We are a small business, with over 20,000 sku's of inventory which will need to be updated manually. This will have a
 HUGE cost as there is NO way to do it simply. Every single SKU will need to be edited manually.

 There should not be a harmonized tax

 leave it as it is

 Government never does anything neutral guarantee you that they are going to make money

 We count the 1500 as income during the year-the loss of that would have an adverse effect on the business. Personally, as
 far as I am concerned, this is an expensive tax on the general public.

 NO more than 10% tax combined Proper compensation for businesses

 Since we are in the campground business....July 1st is one of the busiest weekends of our season....if there has to be a
 change it would need to be in the winter months (February) Also....all of our people only pay GST for camping.....adding
 an additional 8% to their bills will really decrease the amount of campers....since we only have about 10 weeks to make a
 living per year this new tax will have a huge effect on our business.

 It looks like government will not give on ripping people off.

 Atypical neither government fully explains the true ramifications of tax change.

 This is not going to help the legal renovators in Ontario currently our labor is taxed at 5% and we lose work to do it
 yourselfers and cash under the table increase our labour cost by another 8% plus WSIB 8.75%. This is sure to fuel the
 underground economy.

 I don't like the idea and as far as I am concerned they should keep it the way it is now

 Rev Canada can't manage its data entry now, how will they do it next month? Their mission statement has become; "The
 only good business is a bankrupt business." How can we manage?

 We are a transportation service company that is exempt from collection taxes on our services (bulk potable water)
 however; we do get 100% of GST on purchases returned (twice a year). How will we extrapolate the Federal portion of
 these taxes for refund????

 We feel that it is simply another tax grab and "this is NOT the time" to implement such a change!!!!!!!!!

 This is the first bit of information that we have received as a retailer so it is difficult to give accurate responses as to how
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       40

 we think it will affect our business. But suffice to say that if the Federal Gov. has anything to do with it, It will be
 complicated and will cost businesses in the long term and the short term i.e. the loss of compensation for collecting and
 banking their tax.

 As I understand tax (especially GST) should be temporary and should slowly go to 0%.

 keep current tax exemptions i.e. lease and rental income

 Blended tax would add 8% to my product, with no value to my customer. I perceive that it would end in less business to
 compensate for same. It would mean more accounting with less value to me or my customer. IT WOULD NOT STIMULATE

 current exemption on ticket pricing should be maintained so as to not hurt the tourism industry by increasing consumer
 costs by 8 %( on camping fees, Cruise tickets)

 Harmonizing the taxes does absolutely nothing to improve or enhance our business. At present we do not pay PST on the
 majority of our purchases which are for resale. Costs to maintain our rental fleet are PST exempt. Resale and rentals are
 95% of our business. HST will add an entire new layer to our administration at our cost. How this will be beneficial to
 business is beyond my comprehension.

 My inventory will now have a value of 8% added to it, which I will have to lay out the money. I buy metal PST exempt for
 re manufacturing. To me, this is another tax grab for the government.

 I believe it should not be implemented, I am in the construction industry, primarily in home improvements i.e. roofing,
 siding and renovations. This combined tax will increase my prices to the customer by a visible to them of 8% where the
 smaller contractors in the underground economy will show no increase in their prices so this will make us less competitive
 in the eyes of the general public which will reduce our sales significantly and my estimate right now with what is already
 going on with the economy I see next reducing my labour force by close to half or maybe more depending on how long this
 recession lasts. I been in business for 30 years and have seen a lot difficult situations, GST being one that slowed us down
 for a while, but now when we go to someone and tell them they are going to pay the government 13% of their job which
 with our average jobs at $20,000 is a significant amount, they are not going to pay it. They are going to the guy who will
 do it for cash with no visible tax.

 I think that the RST should be lower, like say 3%- 5%. It would be easier to sell to my customers.

 It should not apply to veterinary clinics. In my entire 20 year history I have never had a price hike as high as what the
 government is proposing and most pet owners just cannot afford this tax and ultimately it is the animals that will suffer
 the most. It will likely result in a 10% to 13% increase in cost for veterinary services in a single year. Many cannot afford
 the costs they are already faced with. But when dealing with a government that has a power tripping governor general that
 isn't bright enough to listen to professional advisory bodies that are more knowledgeable about specific subjects than he is
 what can you really expect.....ultimately that this will fall on deaf ears!!!

 The biggest hassle we would have to deal with is that currently most of our customers are PST exempt. If they can claim it
 as an input cost, it will make little difference, otherwise this will mean an 8% increase in my customer's cost

 We are doing the collecting for the government so we should be compensated for doing their job. We have to pay an
 accountant to do this so I think it’s only fair to have some kind of rebate to the people in retail. I know that if we miss a
 payment to the govt. by one day, we are fined the 5% plus 10% Sometimes I think I’m dealing with the mafia.

 Currently I am not required to charge PST on labour. This will add 8% to my cost. This gives the "underground" an
 additional 8% advantage!

 I do not see any benefit to either the consumer or the business. It is just more government out of control. This is just one
 more nail is the small business coffin.

 If anyone thinks this means an overall saving for consumers then they are dreaming in technicolour! Remember when the
 GST was brought in, it had similar rhetoric attached to it about reducing costs and that never happened. As a business
 owner, I am probably going to pass along the expenses of this money grab to my clients. I have a bottom line to look after
 and that is the way of the world, unfortunately. The consumer is at the bottom of the food chain and the buck (or the tax)
 stops at their feet.

 We are a service based business our food based product has no tax but our labour has GST and will be subject to PST
 increasing our cost which we will have to pass on to the consumer. Thank you very much

 To us it's a bad idea. My clients will scream when they know they have to pay more. It is not so difficult for me to apply
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    41

 and administer the changes, but it will decrease my sales for sure.

 The biggest impact will be the underground economy and additional tax burden on the consumer. Government is not
 interested in these facts.

 The costs of Medical in Canada are growing every day. I cannot believe that they are planning on taxing Health Club
 Memberships. In some US states these are completely deductable on income tax and paid by Blue Cross. In Canada we are
 now planning to discourage people all the more from taking care of them by taxing a basic necessity of life. We will pay
 one way or another and it looks as if we would rather put more of a burden on our Medical resources that the prevention of

 Very little information has been provided with regards to why the change is being made. There was almost no warning
 (unless you call between now & July 2010 a warning) that it was going to be passed, and apparently very little opposition.
 Not having it at all will minimize its impact.

 Currently my product (P&C insurance is GST exempt and as such we have never collected GST; nor have we qualified for
 GST input tax credits. If we are going to harmonize the taxes, insurance should be deemed GST-able at 0 percent and then
 at least I will qualify to claim GST expenses I have to pay on my purchases.

 Industrial sector should be exempted completely. In this economic climate small, medium & large industrial companies are
 struggling worse than ever to stay in business and provide jobs for employee's that would other wise be unemployed.
 These companies are PST exempt and just collecting & submitting GST for our government (for which there is NO payment
 for all of the accounting time involved) is a hardship in it's self. Now to add another 5% on to that amount will break may
 suffering companies and throw our economy into worse shape! The worse problem personally encountered with the
 present GST submission is that the receivable are not being able to be collected before the Government is demanding
 payment so the companies end up bridging the costs for the government. Now add 5% more on to that amount it will be
 crippling. I am just happy that I am able to be a part of the CFIB so that I feel that someone is able to speak out on behalf
 of the struggling business owners. Thank You.

 We sell to the agriculture sector. Each true farmer that is exempt should have an exempt # that takes the responsibility
 away from us as a dealer to determine if items are exempt. If a customer does not have# then the tax is charged. Do not
 penalize the dealer for not collecting on grey area items.

 It must apply equally to private sales of used vehicles.

 As a Mom and Pop operation it will require one additional staff member.

 It should be widely advertized and very clear as to what products are taxable. All taxes should be included in the final /
 posted price, not added at the checkout.

 Don't implement at all.

 As the government had originally told us... they would eliminate GST after a while. This is not eliminating it. But... as
 always once implemented and accepted, why take away the feed line? The combined tax could be dropped to $.12. This
 would make the process more acceptable to consumers and retailers. Computer hardware and cash registers have to be
 changed anyway; therefore lowering the amount won't change the difficulty in the process.

 It seems to be the new practice for Rev Can to expect everyone to have studied the website for all of the fine points of
 income thresholds, installment rules, obtaining forms and vouchers etc. I would appreciate a return to the quarterly
 newsletter - even in an email form, to keep people up to date with the changes and new requirements. Waiting until we
 have done something incorrectly and then penalizing us for it does nothing to help us and creates resentment toward
 change, no matter how good the results might be.

 This will affect the cost of doing businesses and allow some companies to ship from the US and elsewhere with no tax
 implications making our products more expensive.

 "Hey Dolton, It's another fine mess you have got us into"

 We are in the financial services sector so we will continue to only deal with RST portion on some products-however
 eliminating the collection fee will be a burden and our overall costs will go up drastically.

 I think the HST is a bad idea. It is the government, again, making business do their dirty work with a cost to the business
 and no compensation. When business does not react fast enough to collect and pay these taxes CRA is the greatest for
 penalties and interest charging. Small business again will suffer for doing the government’s job. Business is tough enough
 in Ontario with out this unnecessary and uncompetitive tax.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       42

 All for it. PST legislation is ridiculously political with exceptions for everything.

 In our particular business, 'Tractors', we do not currently have any information on how it will affect Farmers and the
 current GST zero-rated products. It would be beneficial to know the impact it would have on this sector of the economy, as
 the Farmers had historically enjoyed a special PST tax structure. Many of the few remaining farms in Southern Ontario are
 struggling as it is. To ask that they put out (up front) thousands in taxes that they cannot afford would result in more
 Farmers a) giving up if they need to borrow more money from their banks b) not purchasing new equipment at all. These
 people are already fully dependant on the weather. We could just put a lot of them out of business though. Now there's
 another good idea for Mr. McGuinty to ponder! Why would any Government institute such a major tax grab in light of a
 world-wide recession???

 I provide child care services and do not charge PST or GST to customers. My rent, food costs, services will increase
 significantly and these costs will be passed on to customers in a 3% fee increase.

 Giving the vendors a rebate for collecting taxes encourages them to be honest and have no underground cash deals.
 Allowing the government to collect more revenue in the end. It should be 10% commission on the net tax paid. Example.
 Total Taxes Collected $5,000, Total Taxes Paid on Products $4000 Net tax to Government $1,000 10% Commission =
 $100 to Business for collecting the revenue for the government, Makes them honest sales agents, Overall more revenue
 collected with less overhead on the governments part. The perception is that this tax is expensive; instead it relieves stuff
 that is overtaxed several times.

 It shouldn't take place. It is just another "tax grab" in disguise.

 Remove special considerations - apply the tax equally to all goods and services and make provision for rebates on personal
 tax returns.

 We presently ONLY CHARGE GST As we deliver aggregates. They should NOT implement this new single Tax as it will
 increase costs to our customers.

 Export sales should be deductible from payments, not just excluded. We pay GST on raw materials, but cannot deduct
 export sales from remittance calculation. We are effectively paying GST on export sales.

 more services & products will be paying PST / that over all rate should decrease so RST should be 10% being in a service
 industry the under ground contractor will benefit

 I am sick to death of collecting GST at $0 compensation and demand that I be compensated for being a government
 employee as well as business owner. Furthermore, it will make my normal modest price increases much more difficult to
 introduce to my customers.

 My fees will increase because of adding the PST significantly. I haven't raised my fees for 3 years now, clients won't like
 the double increase.

 No matter what is done, there is nothing good about the tax harmonization. This will put even more of my small business
 money in the pocket of the government. My business currently only collects GST-This will be a drastic to change to my
 pricing structure and bookkeeping.

 I think aligning the new tax as closely as possible with the current collection methods used for GST would make the
 change easiest for businesses to adapt to. If vendors are compensated for collection I would consider that a great bonus,
 especially if the collection process is similar to that of GST, which I find much easier than the process of collection RST

 This single sales tax will cost our company and all people extra monies. At a time when the economy is hurting this single
 tax is another way for the government to grab extra tax and hurt us even further.

 It is going to cause a lot of businesses to lose business; and you know the result of that. This is very, very bad timing
 when the economy is in the shape it is in.

 Regardless it will have a large impact on my business. As a business that offers a service that currently is charged only 5%
 GST, fairly major changes will have to make in terms of pricing, etc. in order to raise the tax to 13% and not affect my
 bottom line.

 The Government has spent too much and is now trying to obtain more from this clever move, but the timing of this is bad
 and it will have an effect on the economy. Believe it or not a lot of the public are unaware about the proposed
 harmonization and my opinion is that they will just spend less. I would suggest for now that a user fee is introduced for
 using the Health Care System, since this is where most of the money is going lately. Example a $5 fee upon visiting the
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                  43

 Doctor and a higher fee for hospital visits.

 The change to sales tax for Ontario is coming at the worst possible time in recent history. With the down turn in the
 economy, and federal govt lack of support for the small bus community, it’s a wonder any of us will stay in business. We
 are an exporter who is already paying far too much tax on imported raw materials and having to wait months to get GST
 refunds. In this economic time, having another strain on our cash flow is unacceptable.

 Businesses who currently only charge GST should continue to only have to charge GST.

 I believe that we would be more receptive to making the changes, (let's face it taxes must be paid) IF the minimum wage
 increase due about the same time be either eliminated or pushed out about 2 years. This recession is going to go much
 deeper, and the small guy just can't afford another wage hike for the same amount of work. The Premier must be made
 aware that our status has changed. Manufacturing jobs @ $15.00 to $20.00 per hour are gone! That buying power is gone.
 The rapid increase in minimum wage will only result in price increases due to increased labor costs, (even less buying
 power) for the little guy, or the bottom line will drop. During this recession nobody can afford either; and have to deal with
 the tax changes. Let's get the changes taken care of, let us adjust and then see how the recession is doing (from the grass
 roots) to see whether a minimum wage increase is doable. Regards

 One current proposed scheme of the Liberal Prov. Gov't to bury the new tax in an "all included" price scheme is dishonest
 and disastrous. How would Ontario businesses sell on-line and out of province if all their prices were forced to include a
 13% tax that others would not have in their basic prices? It would be an accounting nightmare since out of province (out
 of country?) customers would be entitled to a discount on the price paid. We currently have a PST exemption no. and thus
 don't pay PST on most input costs so there is no real savings for the average manufacturer. This tax change is simply a
 huge cash grab on the average consumer.

 Because of the complex structure of billing in the construction industry, particularly on long drawn-out projects, I am sure
 it is going to cause "big" problems in our business.

 As a school, we only charge GST. I do not want this combined tax for our business in any way. It will create a hardship for
 my staff and also my bookkeeper to keep tabs on submitting on time as at this time we submit GST once every 3 months.
 I hope that teaching establishments can be except!

 Our business depends on exports. Now zero rated, need to know more about export and this tax.

 As an independent Funeral Home, an additional 8% tax will infuriate consumers on a purchase that they highly view as the
 final indignity to hard working, over taxed Canadians. The cost of funeral service is unfortunately high enough, adding an
 additional tax will indeed decline our gross income, most families only have so much to spend on anything, and funerals
 are no exception. There will be no advantage to us as a business to have this tax implemented; all Funeral Directors agree
 that this issue will be seen as a real step in the wrong direction. At the end of the day it will be the consumer who will be
 left with less that they had before and in this economy this will only stimulate more negatives.

 If the 13% tax could be reduced, this would help our customer who has to pay more for the increased price of lift tickets,
 lesson programs, and food.

 The old PST is out dated and needs to be replaced with the HST. PERIOD!!

 You did not address the "fitness industry" which I am.

 I'm waiting for more info

 I generally support the combined tax; however, the PST portion should be lowered to a rate that would not increase the
 overall personal expense or the Provincial government’s revenue.

 There would be no impact as far as my bookkeeping or clerical work is concerned but if I lose 2 or 3 of my regular weekly
 customers because of this (which could easily happen as they are mostly seniors on limited budgets) I could stand to lose
 WILL NOT BE ABLE TO AFFORD MY SERVICE. Your survey barely touches on this and I feel that this is the most important
 issue against the HST.

 Advertising to inform consumers of the change to reduce confusion and possibly anger at the cash register. Retention of
 commission to vendors for their collection and reporting time and efforts. Reduction in rate to reflect broader range of
 products now taxable and to promote to consumers

 I am not sure yet. I do know as a service business it will effect how my customers tip my employees or add on any other
 services when we just increased their bill by 8%.Times are hard already. We do not dare raise our prices although my
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                           44

 overhead rises all the time. Know we have to contend with this, it sucks.

 As a dry cleaner customers will think that we are making all the money -Not the government. There should be no PST on
 dry-cleaning / laundry.

 This will put a much higher tax that is not on my product now and make it more expensive. This is just a tax grab.

 The single tax adds a substantial amount to health club memberships. Healthy people cost our system less and should be
 encouraged not discouraged. At a time of restraint it is not OK to add additional taxes.

 This will increase the size of the already huge underground economy significantly. Many small contractors don't have
 bookkeeping systems so cash is king.

 It has to work the same as GST. No new rules. I mean none, zip, zero!!

 As we are general insurance brokers we got hit when GST was introduced and now they will make it worse. They don't
 care, it’s extra for them.

 Eliminate it. It is the largest tax grab in history. It will negatively impact every person in Canada.

 Our business doesn't charge PST now, so by adding it, our designs will cost more & lead to more underground work. I
 don't think it should be implemented at all.

 The HST should be included in the advertized prices of all goods. It infuriates many people, particularly foreign visitors, to
 have to pay additional money on top of the advertised price. Adding the tax onto to advertised price will be more difficult
 under the HST when you are pricing something if there is no calculator handy.

 The $1500 compensation is a slap in the face! I would say it cost at least $20,000 per year to administer and remit retail
 taxes. If you ever get behind on paying the taxes for what ever reason they can do what ever they want seize accounts
 seize funds. They do not or will not be flexible at all even if it puts someone out of work or out of business. The
 government should send out the people they have on staff to collect the tax from the public they after all are being paid to
 collect the tax. All they have to do is sit in a office and input the info I give them so I have actually done most of the work
 they get paid $50,000 per year I get nothing how fair is that. I'm better off claiming I made $30,000 or less and not have
 to collect any tax.

 It should not be implemented, period.


 This will have a significant negative effect on all of health care, the cost of a membership will go up by the 8% and a
 significant number of our costs will increase by the 8% Ex. Hydro

 Question? Currently, clients exempt from GST (government funded programmed) would now pay provincial tax? With the
 economic conditions and the number of 'workers' laid off & collecting EI - they are supplementing their income by
 competing with the service industry. We see the underground economy already showing its ugly head. With the additional
 tax to services the service industry will again struggle to justify the additional tax. Clients only will see this as an increase
 no matter what adjustments the service industry makes to keep the costs down. There is no design that will convince the
 clients/customers that this is good for them.

 We feel that the taxes should be imbedded into the prices instead of being charged as an extra. Customers do not like to
 see taxes; they only want to see the bottom line. This will cause the underground economy to grow and flourish.

 We provide a service that is currently exempt from PST. We also purchase from the Us and resell the product to Canadians
 that are also PST exempt as they resell the product with their service Where do we apply the PST on jobs to manufacturers
 that have always been exempt?

 We need to know now if there will be any exemptions, i.e. agricultural products

 The cost to implement does not include the cost due to lost customers. This, in our business could be significant.


 Increasing tax; less disposable income for customers, this is a desperate move by a mismanaged government. Ontario just
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      45

 doesn't seem to be a welcoming place to do business in, anymore.

 Nothing but another tax grab by the government. They just can't get enough money to fritter away wastefully.
 Congratulations to McGuinty for making us a have not province and for scaring away one of our most valuable resources.

 Due to our business being retail, service and real property supply & installs we have several ways we have to calculate and
 administer the current taxes. If the taxes are on top of everything; to my understanding; it will create several challenges
 to implement with customers. Our customers are walk in, residential, commercial, supplying other businesses, supply to
 natives both on and off reserves, as well as installs on reserves. We have enough of a problem dealing with our native
 customers in collection of taxes with the current system; either take both taxes off and make them pay regardless of their
 place of residence.

 This tax reform should not happen! It is unnecessary and will only hurt the economy in general by increasing the cost of
 essentials such as electricity and home heating.

 The benefit of ITC far outweighs the $1500.00 compensation currently provided under the RST; therefore no additional
 compensation is appropriate. While I am pleased to see some movement in the direction of common sense PST & GST to
 HST, the proliferation of petty fiefdom regulations and taxes "ONT WEEE FEEE administered by the MINISTRY OF GARBAGE
 COLLECTIONS", is most disturbing. If the need to pick our pockets is that acute, why not raise the sales tax to 9%? This
 way we can all partake is the much needed TAX REVOLT!!!

 I hope we get clear direction from the government about implementing the new tax rate and what is required of business
 owners, what is taxable, etc

 52 per cent of all the business in our town is underground I don't see how it can be minimized.

 lower personal taxes otherwise we will be getting squeezed at both ends-end up lowering personal consumption of goods
 and stall the recovery-we need less government not more

 The implementation of a single sales tax system will impact my profit margin regardless of any procedures or one time
 rebates from the government. In this economy my service business must be competitively priced. We would end up being
 unable to receive remuneration for the increased tax - from 5% to 13% as we are currently only collecting GST from our
 clients - and our costs would be increased accordingly. Non retail business is being hurt by this new tax.

 I am of the understanding that by-and-large this new regime will end up being a significant tax increase... which obviously
 I don't like. Also, as previously noted, our main product line is currently non-taxable, and I have been unable to date to
 ascertain as to whether or not that remains the case... another negative. All-in-all: very unimpressed indeed.

 At this point, the HST is something we have not researched or are informed enough about. Undoubtedly, it will be a
 challenge to initially deal with, but I’m sure we will manage... It would be great to have better visibility as to what the
 outcome will look like...

 Some of our customers are native and are PST exempt. How will that need to be handled?


 This new proposed tax will be a huge financial burden on business that currently purchase goods or services that are PST
 exempt. I think it will force the closer of many businesses.

 As a lawyer, my fees only attract GST at the moment. After the tax reform takes effect, my fees will attract the higher tax
 rate, increasing the overall costs to my clients. In difficult economic times such as we are experiencing, people can hardly
 afford increased costs for professional services such as those provided by lawyers, accountants, surveyors, etc.

 My biggest concern is the cost of energy that will now include the additional tax, which will have a very negative impact on
 my business. Gasoline costs are crippling me now, when there is no need for the price gouging that is already happening.
 When is someone going to break up this monopoly with gas prices at the pump? When the price goes up, they all go up
 the same amount and the same time. Don't tell me that the majors are not working together to keep the prices and profits

 Just don't do it! Right now our major clients (churches) are: PST Exempt GST: Get a 50% rebate. I expect this to be VERY
 COSTLY to our clients.

 I am not sure if insurance will be effected however if it is it will effectively put up everyone's insurance for all property up
 by 5% with out any rate increases in an already hard market
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                      46

 I believe it would hurt the manufacturing sector even more. We now only collect 5%. Our customers will only see the
 bottom line. It's difficult enough to make our prices look attractive and competitive. This will only add to the manufacturing

 We have a dental office that must pay tax on supplies...we anticipate that tax to increase ...we are not allowed to charge
 tax on the services we provide so ultimately our costs will increase.

 Make it 100% compliant with the federal GST legislation--less legislation is easier to comply with and cheaper to maintain
 and enforce.

 As a Dairy Farmer only dealing with the milk and not other products it is hard to determine what impact it may have on
 our business. Our only concern at this point will be whether we will still collect back the GST inputs we currently benefit.

 It will increase the underground economy. The more people have to tighten their belts in poor economic conditions, the
 less they wish to part with taxes. There are always some wishing to use another’s tax exemption be it status or small
 business vendor permit number.

 I totally agree with harmonizing the taxes. Current administration of the RST is almost unbearable in our business. The 2
 issues I have: 1. Make it simple - keep exceptions to a minimum. 2. The rate must be harmonized: NOT 5%+8%. The
 base will be much bigger - you CANNOT charge 8% on the harmonized based. This is a disgusting tax grab. This one issue
 is a game changer - the current government cannot survive if they implement this.

 I am concerned about some of the services whereby we do not collect PST. This is going to cause an accounting

 What is all this about embedded RST when manufacturers are exempt by using their RST exemption license? I find this is a
 poor selling point from the government, and will increase customer pricing, not reduce it or benefit the seller at all. I also
 am certain that it will harm businesses like mine that sell across the country, as a customer in Calgary will now pay 13%
 tax instead of 5%. That additional taxation will be buried in the price if they cannot get compensation for that.

 We're in the construction industry that has not charged RST previously. The impact of this new tax will be great. People we
 have spoke to don't understand that now they'll be paying RST on labour where they have never paid before. With
 construction down, this isn't going to help any.

 I am PST exempt for raw materials - will I have to add an additional 8% on all of my raw material costs? This will have a
 big negative impact on cash flow. If I am tax exempt under this new HST and I don't have to outlay 13% when buying raw
 goods this actually saves me an additional 5% (GST) in cash flow. Regardless of the ITC's cash flow is the issue. The
 compensation for completing the PST remittance acknowledged the business owner's time and expense. Elimination
 amounts to an additional tax grab by the layers of government. Also, where is the savings - in any other "merger-like"
 scenario there would be cost realization by eliminating redundant people, processes and technology - efficiencies should be
 gained and, as such, passed on by reducing the blended rate to 12% or 11% - instead the governments are once again
 keeping the "gains" to increase their tax base - despite the revenue "neutral" claim they make.

 I am a mortgage broker therefore exempt from any tax on our services. How is this going to affect our situation?


 There has been no mention of refunds to contractors like us who pay RST on all purchases of material to be installed at a
 customer’s location. We have an inventory of approx $250,000 which has had $20,000 PST paid on it. Would we be
 required to do an inventory on the changeover date and be reimbursed? Please reply as we not the only ones in this boat.

 We provide an installed "real property". We will no longer have to do cost calculations to remit PST on cost of goods.

 I am strongly opposed to having the GST and the PST combined. I don't want to have these taxes combined.

 Should be good for business once we get through the transition period.

 This is nothing but a tax grab from McGuinty

 It should not be implemented at all & we should fight it at every possibility. Ontarians are taxed to the hilt already. The
 combined tax will increase a lot of products by 8% that we're not currently paying the tax for. Mainly it will increase the
 cost of fuel which in turn demands an increase of all products since they're all shipped from 1 location to another at some
 point. While there are some incentives in there the end consumer as always is the looser & we're all end consumers of a
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       47

 given product! For example even if groceries stay exempt their prices will still increase because the cost of getting it there
 will increase! I am totally against this tax reform!!!

 Does the government not realize we are in a recession? First they raise the minimum pay now they want everyone to pay
 more taxes. If they could just leave the taxes alone it would be greatly appreciated!

 The single tax is not an issue for my business. It is 100% positive as my clients can now ITC their printing requirements.
 (8% savings) On a personal level it is an absolute disaster. Paying an additional 8% on utilities, gas, and other previously
 exempt items will be painful.

 It should be remitted to government on a quarterly basis rather than monthly as the RST currently is. Retailers should be
 exempt from the tax as we are now from RST. This would create a little less input tax credit paperwork.

 I only put 1.00 in the amount portion of the cost to convert because I don't think there will be any additional costs. It is
 still so early in the transition that I have not really had time to think about any extra cost that may be involved...I don't
 think our computer software support company will charge extra for the update...

 At this point it's an unknown there not much information and feds and prov. seem to be at odds. Looks to me as if it will
 be a mess. Pro. PC leadership hopefuls have asked the feds not to move forward until after the next pro. election in 2011

 Without an adjustment in the RST (8%), I fail to see how this is nothing more than another tax grab. The RST component
 needs to decrease to around 6% or 5% to compensate for the value added by the supply chain

 Keep taxes separate! Single sales tax means more difficulty obtaining legitimate work - addition of PST to construction
 services such as ours will decrease our sales as customers decide not to do their renovations. All construction sectors may
 suffer badly, especially after this recent economic crisis. More legitimate employees will see reduced hours if not actual lay

 The manufacturing sector has been hard hit with the current recession, while the additional tax will be refunded, the
 increase in upfront cost will severely impact cash flow AND MORE IMPORTANTLY the necessity to change customer blanket
 orders, contracts and purchase orders to reflect tax changes is more of an administrative nightmare than having to report
 GST and PST separately!

 The service industry was not adequately reflected in this survey. Healthcare services should not have to add this tax - they
 shouldn't even ha e to charge the GST!

 I would like to address the following examples: Item #1: In the past RST and custom software had been a grey area. We
 needed to get a ruling on our particular situation. At present we develop custom software and have been provided a ruling
 by the RST Dept that because our systems are non executable files that we do not need to collect RST. If this changes, we
 MAY be open to Cash Flow problems. We will likely have to remit BEFORE the taxes are received from clients. We do not
 have a significant amount of expenses to offset as input items. Payroll is our number one expense. Item #2: I would HOPE
 that the documentation for this will be simple and easy to follow. For example in regards to software development, I would
 like a clear understanding of the exemption for software that is sold to clients outside of Ontario or Canada.

 I still do not know how this combined RST is going to affect our firm in 'meat processing' sector. All of our inputs and input
 services are PST-exempt, and we already claim back our GST. Does this mean we will now pay 8% PST and claim it back
 every month as we did with PST?


 Keep it simple especially as we are not getting any payment for collecting the tax. Just get rid of McGuinty - what is he
 thinking or should I say he's not thinking at all!!!

 Don't take away the compensation schedule.

 It shouldn't be designed at all it's just another tax grab by Dolton.

 I think its a bad idea to begin with as it will cost taxpayers extra money from their pockets, bills are hard enough to pay as
 it is due to the greed and mismanagement of utility comp. Leave the tax the way it is.

 My belief is that it should not be implemented at this time. The economy can not sustain an increase in goods and services
 at this time. I believe the consumer will not be willing to spend the money and our business will slow.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                         48

 The government info to business has been disgustingly minimal. We are a zero rated business for GST (health care) &
 have not received or seen any info as to our new status. Most of the fees that we can charge are fixed by the government
 i.e. motor vehicle accident rehab and WSIB. We have no way of passing on the increased input costs except depending on
 the "good graces" of these agencies for a fee increase -which I see as highly unlikely given their track record of Scrooge-
 like compensation rates.

 Need more info on how the system will be administered

 I am appalled at the high-handed arrogance of the Provincial government in implementing this hugely inflationary step
 with the common respect of involving input from affected segments of the populace. A tax grab in the most blatant form.

 We are a renovating company that supplies and installs home products. We have always paid RST on our cost price of the
 materials installed. With the new system we will now be charging 13% on the installed price resulting in higher prices
 charged to our customers


 The more consistent it is with the current GST, the easier it will be to manage.

 There should be excellent changeover information published well before implementation. In our industry of construction
 there was considerable confusion on treatment of the holdback portion of our contracts when the GST was introduced, also
 on how the billing of contracts that spanned the changeover. This is going to be a more complicated issue as quotes that
 will be prepared prior to the implementation and may be awarded after the implementation will have to be recalculated.
 There should be transition period for work that is estimated prior to implementation that could go ahead under the old tax

 Need more information on Tax Credits for items purchased wholesale or paid on leases etc. etc.

 This new tax will really hit hard at parents of children who take private lessons in anything (i.e. music, sports, dance, etc).
 Many will choose not to afford it which will take a real toll on our social level of ability.

 Compensation under current system was always appreciated. Have always found the GST system more complicated and
 would appreciate continued compensation for the collection/remittance of taxes.

 I thought we were trying to get the GST lowered and now we are combining taxes, when are taxes going to become lower?
 It is going to cost consumers more as everything will now have 2 taxes vs. 1 tax, we are just going backwards.

 I don't think we should be unpaid tax collectors. At least Ontario gave us something back for the additional bookkeeping
 and time we spend collecting their tax for them.

 The HST calculation should allow for a credit based on UNCOLLECTED invoices. In other words... we should have to submit
 HST *ONLY* when we've actually collected it. With many large companies stretching payables to 60 to 100 days we often
 have to remit GST that we have, in fact, NOT YET COLLECTED. I think this is wrong.

 Would need it to stay quarterly remittance to reduce the number of trips to the bookkeeper/accountant

 As a Dentist I am unable to offset sales tax against tax paid so that fees will have to go up substantially. Rent, services
 and many healthcare items that are Provincial tax exempt will now cost 8% more.

 The Real Estate Industry, especially in Toronto, has already been subject to significant taxes that affect sales. This is but
 another added tax to discourage Buyers and Sellers from moving and keeping this industry functioning for the benefit of
 many associated industries.

 This tax will have a SIGNIFICANT NEGATIVE effect on my business, which is already suffering from the recession. The vast
 majority of consumers now treats their pets as part of the family and wants to provide good health care to them, BUT the
 government apparently treats animals as a luxury item and a sudden increase of 8% on veterinary services will cause
 untold problems for our industry and force more and more pet owners to neglect their pets.

 Tax rate should be lowered

 I run a call centre that sells our monthly services to the US. Can the US businesses get back the RST that they will be
 paying? Currently I only have to charge them GST now I have to increase there bill by 8%.

 You already mentioned it in one of your questions, but I see this as making the black market and underground sales grow
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                  49


 Any increase in the cost of goods to the end user is detrimental to sales and the growth of sales. Sales across the country
 are impacted and sales to distributors are also impacted as are tendered and contracts.

 It will cost more for purchasing off the start as a lot of the stuff will be taxed at 13% instead of 5%

 We are in a down or restricted economy - many are losing jobs; or have reduced incomes; a hike in prices to cover PST on
 accounting services will either reduce customer base or business profits. How can this benefit either?

 This tax will be collected by the CRA. There is absolutely, positively no WAY that the Ontario Ministry of Revenue will
 reduce its employment level, even thought they are no longer collecting PST. These bureaucrats will live on in the system,
 leaching away tax dollars that should stay in private investment. Has the CFIB addressed the inevitable bloat that will
 remain in the government after these tax collectors become redundant?

 It results in greater tax revenue for a government that does not currently handle OUR money properly - IT SHOULD BE

 Don't implement it.

 How will farmers fair in this with regard to their current RST exemption status? Will we now have to pay PST on


 We feel that the taxes should remain separate, and that merging them would impact our business substantially. Charging
 13% tax instead of 5% tax (which we currently charge) for veterinary services would SEVERELY impact our clients and the
 medicine we would be able to perform. Some clients will refuse necessary medical treatments for their pets that they are
 unable to afford with the extra 8% fees they would be charged.

 It is unfair to add more tax to the service industry such as legal firms


 Customers will not be in favor of the increase in the 8% PST they will be charged that they are not today. That will be very
 negatively received.

 Do not know how it will minimize the impact as we are an bookkeeping and tax services firm, which will make an increase
 of 8% upon billing, with no chance of increasing my fees...everything else went up....surely we will losing some customers
 that will attempt to do their own bookkeeping...very hard to survive these days...and gov't has no care in the world....pack
 it on. Customers side of things, it will generate the same work....the PST report was taking only a few minutes to we already had to enter figures for the GST...WOW Government you did it again....

 This is a huge tax grab by the government and the public is not aware of it. Many things that currently do not have PST
 will now be taxed. Most people think it is just a blending of the 2 taxes. Other provinces that have blended taxes have
 taken this into account and reduced the combined rate. Ontario is just increasing taxes....AGAIN!

 This single tax will add the 8% PST cost to over 85% of my business which at present is exempt of this cost. We believe it
 will drastically affect our business volume, cash flow and ultimately our BOTTOM LINE!!! DO NOT CHANGE the existing
 system this amounts only to a huge TAX GRAB for the government which only gives them more $$$ to foolishly waste.

 I feel that this is the worst time ever to be trying to implement this type of change to our tax system in Ontario.
 Businesses are struggling enough in this economy without needing to add extra costs and energy to try to switch over to
 this system. Also, there has not been any information come out to us here in regards to this change over and in fact when
 I asked my in house accountant about our cost for the change over he didn't even realize that this was happening on July
 1 and I didn't realize this either until you sent me this survey. I guess they are just trying to wash this under the rug and
 then are going to hit everyone with fines if they don't comply.

 This tax will make it more difficult to sell legitimate home repair and renovation services. Customers already baulk at
 paying the GST; a harmonized tax adds 8% to the cost of doing business!! As a legitimate company we are already
 squeezed by operators in our sector that sell their services for cash - this will increase that advantage to them and create
 more of a dis-incentive for customers to use our home repair and renovation service instead of the underground operators.

 We provide child care services and do not charge our clients any PST or GST. Impact of new sales tax would be on our
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     50

 expenses and not on sales.

 Our products and services will now have to carry 13% tax rather than 5%. Our greatest fear is that customers will be
 confused and only see the 8% increase and possibly be more reluctant to purchase from us.


 Currently, GST paid on purchases is the only ITC we can offset with GST charged on purchases. With the new HST, HST
 paid on purchases will now be the new ITC that will offset the HST paid on purchases. This is a better system and I hope
 we will be able to remit according to our current quarterly remittance.

 RST does not apply to our products or to the services we buy now. The impact on our business is just a government
 imposed cost increase without any benefit. We can not pass along these costs.

 This new tax system will create a level playing field between us (auto sales) and private sellers and it should get rid of

 We are a farm selling wholesale produce. We can't put our prices up but it sounds like we will be paying more tax on a
 broader spectrum of expenses. We are wondering about our costs going up but not our income

 Since there is a broader tax base, the PST should be reduced. Otherwise customers will see it as a tax grab. If the
 provincial government just took 5% the same as the federal government on all the same goods and services it would be
 fair and it would be easy figuring for the seller and the buyer to just pay 10% on everything.

 Eliminate the increase - decrease the tax to one lower tax if you must do it. Our customer base is dropping due to the ever
 increasing money grab.


 Since the government is going to only one tax, why don't they take back the job of collecting it? They would only require
 minimal staffing and it would allow small business to bolster up their bottom line.

 Scrap the idea.

 I am a franchisor in the education business, as our franchisees are GST exempt this single tax system is going to
 negatively affect them. I am assuming the royalties they pay will include the 13% tax - currently they pay 5% GST. This
 cannot be passed on to the end consumer and since they are exempt they cannot claim the ITC's. In addition they will be
 paying the extra 8% on their leased locations. The tax system needs to look at the costs of small business and have a
 better way of determining exemption status - in our business, we should be able to claim the ITC's as it is the
 governments choice not to charge the sales tax to the end user.

 1. How will purchases that qualified for a PST exemption certificate, such as supply and install contracts for machinery &
 equipment for manufacturing or part of real property be affected? Will this exemption be removed and the 13% tax
 imposed? 2. If we sign a contract with a client prior to the July 1, 2010 implementation date for commencement of work
 before and after this date, do we charge 5% or 13% for our services? This straddling affects the purchases of materials
 and equipment required for the job as well.

 Really not sure how this is going to effect exempt customers.

 It should not be implemented. Keep the separate taxes. Most of my clients are PST exempt. This will add an additional cost
 that will put some businesses out of business.

 The government should create a website with some modeling for different businesses on how to handle different scenario,
 so vendors can get a sense of what could happen and how to deal with their daily encounters with the new tax system.
 Right now all we get is from the news, we haven't received any further info on how to deal with the new system, and we
 are just one year away from doing that.

 Abandon the idea!

 There should not be PST added to books.

 Both my clients and our company do not like the new change to the taxes.

 This tax will have a large negative effect on inter prov business. My business will have to absorb significant costs due to
 clients not willing to pay the extra tax which they are now exempt from. 8% is a huge number to overcome!
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    51

 It should be eliminated. I am a service industry and do not currently charge RST. I know that I will have to spend
 additional time with the majority of clients listening to their complaints about the tax.

 Refrain from taxing items not previously taxed that are essential to running a business.

 The system should be designed so that if you currently remit GST every three months than you should continue do so.

 I am seriously thinking of going completely underground as many of my competitors are now.

 Percentage should remain 5% but on the two taxes combined, with a limit higher than $1500.00 per company.

 Make it a harmonized tax, not like the Quebec tax.

 Don’t know very much about it. impact will show at later stage when more detail information we will receive from

 I can probably do some personal homework to deal w/ administration of the new single sales tax system but some help
 from CFIB such as Member's Services would be helpful (and I know it would be reliable and independent/impartial
 compared to any help offered by the taxing authorities.

 Most of our products are installed as permanent upgrades to real property and therefore PST isn't charged to customers
 (we pay it on materials). Both taxes should be exempt on upgrades to real property as this will double or triple the
 underground economy (I have enough trouble getting home owners to pay just the GST, never mind a tax that is more
 than double the rate).

 Now is the time to reduce the tax at the same time when starting this new single sales tax. Total tax should be reduced to
 10% or less. This will help the economy; encourage consumer spending, help business to compensate for loss of
 compensation, as well as implementation. A reduction in total sales tax would do wonders for the economy, business and
 consumer alike.

 I don't think it should come in at all. The general public does not understand that prices will not go down; they will be
 surprised how much more they will be paying for services they use daily that they do not currently pay this tax on, such as
 hair cuts, houses, certain foods, etc... But once it is in place it will be impossible to get it reduced or removed.

 This will affect my clients immensely, we are a legitimate health and wellness clinic who help keep individuals healthy and
 out of the strained Medicare system, most of the clients pay out of pocket and now they will be expected to pay a
 harmonized sales tax... this is a cash grab by short sighted greedy corrupt politicians...

 Do away with current $30,000 threshold.

 I strongly object to Ontario's plan to continue with retail sales on used vehicles that are privately bought. The present
 system is not based on actual purchase price, but on an arbitrary assessed value. The last vehicle I bought, RST was
 assessed at, not 8% but over 90% of purchase price. UNJUST, and should be ILLEGAL. It sounds as though this system
 will continue unless strong protests are made.

 I think they should leave the tax alone for now. Why do they put it in a budget that takes a year plus to implement? It’s
 like saying shovel ready.

 I already finance the GST as I must remit before I have collected I think this will just be a bigger amount that I will have
 to finance

 WE are horrified with the new tax as currently 90% of our business is RST tax free and now our clients will see a 8%
 increase in all our services at a time when extra cash is not readily available.

 This RST is ridiculous please stop it...

 You can't minimize its impact on small business? My company works on very small margins to begin with and sometimes I
 have to include in my pricing applicable taxes - currently not all clients pay both taxes, so, quoting on contracts will affect
 my profit margin if I have to include two taxes in my pricing.

 The admin burden of inconsistent PST regulations has been a nightmare for my business and I am glad that the taxes will
 be harmonized. Add to the almost terrorist-like attitude on the part of PST enforcement officers and I will look forward with
 optimism for a brighter future with harmonized tax.

Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    52


 Clear definition of "substantial renovation", rebates to builders, sales price threshold increases on GST/HST rebates, clearly
 defined transitional rules

 The single sales tax will put us at a disadvantage in the market as items that only had one tax will now carry 2 taxes
 (incorporated into one). The Liberals are out to lunch on this one

 lower corp. tax rates and personal tax rates

 They are giving a special rate to new home builders but not to someone doing a major renovation which could also be in
 the hundred of thousands of dollars and labour was not subject to RST before. Why not give a special rate to renovations
 the same as they do for builders?

 It would be easier if it went into effect January 01st of a calendar year rather than mid year.

 Since the Province will be getting tax on a lot more products than before, they should lower the rate they are charging;
 they'd still get just as much money from us!

 I currently am PST exempt as I resell - will this continue?

 How will we handle sales to currently exempt provincial gov't operations? These are our biggest customers that are
 currently exempt from GST.

 The change will cause problems for construction projects which have been priced with the existing system as PST is
 included on materials purchased only and it will be hard to convince the client and determine what the up charge will be

 The increase from 5% to 13% will undoubtedly create more pressure from underground economy to work with cash to
 avoid paying HST --the drop from 7% to 5% was a real help in combating that, and anything over 10% for HST will be
 very problematic.

 The 300 - $1000 one time credit needs to be increased substantially. The cost for professional services to make changes to
 my accounting system, close off the books at June 30, 2010 and again Dec 31 will far exceed the credit.

 Should not be 13 percent as PST did not apply to my business. Should be lower to compensate for the extra taxes

 The 8% portion of the combined HST should not apply to goods and services that were exempt from the Ontario PST. The
 entire 13% should be a flow through tax like the GST to improve competitiveness of Ontario businesses vs. those in other
 jurisdictions that did not have similar taxes.

 It should not even be contemplated at this time, under the current economic conditions. It will only further retard the
 economic recovery.

 Most of our customers are PST exempt. now all manufacturers will be forced to pay more tax, which will lead to an
 increase in their final end price to the consumer --bad for customers

 I don't know enough about it to say.

 Scrap it. Since environmental issues are extremely important in our society today, and also with the government. Planting
 of trees, shrubs, grass etc. should be exempt from these taxes. Of course to be fair other companies are helping out the
 environment as well, I think! Correct me if I'm wrong! Are we not the most heavily taxed nation in the world or are we
 second behind France? I'm sure I don't get the point of all this tax stuff, it just hurts a lot when I loose a 30 to 40
 thousand dollar landscaping job because I will not swallow the tax, it's happened many times. Why don't I go
 underground? Or why shouldn’t I go underground. Answer. The only reason I don't, and it is not a fear of being caught by
 the tax department, it is because the Bible says Pay your Taxes.

 With today's current economic times this is extremely bad timing for a new tax. Businesses are struggling because of drop
 in sales and customer payment habits. The manufacturing sector has basically taken a large hit. The government is
 ignorant of these issues we are facing.

 I am not in support of the harmonized tax system.

 Highly endorse the change and welcome only having to deal with a single tax system especially since this will be federal.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                  53

 Dealing with the Ontario government has always been difficult.

 It will be very difficult to submit 13% of sales per quarter when it takes 65 to 540 days to get paid for my work. The
 cumulative effect will kill me. It is a really bad idea. Canada stands alone as the best country surviving this
 recession/credit crisis and they use struggling countries as an example of implementation. The Maritime Provinces and
 Quebec since implementation have required perpetual Transfer Payments to make their provincial economy viable. It will
 kill Ontario

 We are in the hospitality business. The biggest negative to this is that guests will now pay 13% tax not 10% tax, making
 us even more uncompetitive with other jurisdictions. Non-residents should be excused from paying taxes. The tourism
 product in this country sold to foreigners should be treated the same way a manufactured product is treated that is sold to
 a foreigner. No tax! Also, housing should not be taxed at all. It is ridiculous to pay taxes on housing. This a huge expense
 for the average person, and I can only imagine how many people it keeps from purchasing their own home. What a stupid
 tax. Compare that with no taxation on prepared meals under $4. The government sure is stupid!!

 I now use the quick method for GST. It would be good if something similar could be implemented for the combined taxes.

 It should be scrapped!

 The single sales tax should NOT BE 13%! If a combined rate is the goal then know that we all realize the government
 stands to make ADDITIONAL REVENUES of 8% on all those items which were previously exempt from PST. This is an
 outright tax grab! It is sad to think the government believes small business owners are so lacking in intelligence as to not
 see the play on words used to sell this change to the public! Shame on the government for attempting to 'trick' hard
 working people into giving away more of their money with nothing provided in return.

 As a diaper service provider we should be exempt of taxes as are disposable diapers. As a laundry service supplying the
 health industry we should pay only the GST

 Model it around the existing GST which is simple to use.

 Cancel it all together. In the service industry it is going to cause a big growth in the underground market and our clients
 will go for it if it saves them money. The minimum wage was an issue and has driven more small businesses to cheat this
 will even make it more attractive.

 This system will harshly affect real estate from a sales and development standpoint and should not be carried out.

 This will be the biggest tax rip-off that consumers have seen in a long time. It will depress the economy and fuel inflation.
 There will be no labor savings in my accounting area just higher cheques going to the government.

 Rate change should be effective on date of sale. (When PST was introduced on insurance premiums, any uncollected
 premiums from sales prior to the implementation date had to have tax retroactively applied to them! Let's not repeat that
 nightmare again!)

 There are some privately owned health care companies, who did not charge the 5% GST on health service provided in the
 home, paid for by provincial agencies who will be forced out of business with GST back charges and penalties because of
 misunderstanding the regulations and lack of listing a tax exempt procedure. The rules must be clear for all sectors of the
 economy and with very few exemptions.

 My business is a consulting business and sells only our time to clients. Our services were not previously subject to RST.
 Now our clients will see an 8% increase in our services. They will not pay it as they are all on very tight budgets. We will
 have to absorb the 8% tax increase and in today's economy, that may just about wipe out our profit margin. No profit, no
 business. I think the Ontario Government does not understand that this will affect all consulting businesses in the same
 way. Great way to eliminate some of our competitors, but it might be us.

 I am a menswear clothing retailer. I buy goods from larger companies that source their product from out of Canada.
 Currently I only pay GST on my goods that flow in to my store on a monthly basis. With the implementation of the HST, I
 will now be forced to pay 8% more per month on my goods. In addition to my increase in the cost of my goods, my costs
 will also rise in my rent, utilities, and alteration costs for my customers and service providers I use in day to day
 operations. As a small business I cannot afford an increase of 8% in my month to month cash flow. The argument for the
 HST has been it will stimulate consumer spending. If you want consumers to spend more you have to put the money back
 directly in the hands of the consumer, not hope that manufacturing tax breaks and HST cost savings are going to be
 passed on to the end consumer.

 As the RST would now apply on a much broader selection of goods & services, it would be nice to see the rate reduced to
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                       54

 7%, with the ultimate goal of reducing it to 5%, which would result in a 10% tax. I recognize that it would take several
 years before it could be reduced to 5%, but the 1% reduction to 7% should be done at the introduction of the tax.

 Cancel it.... Ontario will lose a lot more jobs. We are cancelling an expansion. We are moving to Alberta, there's no tax

 I own and operate a Marina and do not charge PST on dockage, storage, haul out or launch costs. This year I froze my
 rates at 2008 rates because it didn't seem right to increase them during the current economic situation. My customers
 acknowledged this with their appreciation. How do I now increase the rates in 2010 (in good conscience) when my
 customers are now facing an 8% tax increase in their rates? Clearly, McGuinty has no conscience if he goes thru with this
 in the current economic times.

 I'm concerned about the months leading up to July 1 2010. I sell to businesses that have to pay RST. Therefore, I think
 there will be a dramatic slowdown prior to the new tax, because clients will wait to buy so they will get the ITC rather than
 having the expense to their bottom line of the RST as occurs now. Will the government allow any "backward" ITC's to
 prevent this?

 I have promised my league bowlers no price increase and now my government tells me I have to break that promise. My
 promises to my customers seem to be way more important than my government’s promises to its voters!

 Overall the negatives associated with the broader base of products and services that are taxed will overshadow any
 possible savings in my business. This is a tax grab pure and simple. Another at a time when we can afford it least.

 Keep it on the forefront of everyone's attention. Send repeated emails reminding of impending legislation. keep sending
 updates as information available

 I cannot think of anything specific to the design, but related to the change is the need to identify and use all possible
 means to inform consumers.

 Eliminated....we are in the business of sending people out to work, why should that service be taxable...with this current
 unemployment rate?

 Still waiting to here how it will affect items with no GST, but with RST (i.e. Property Insurance) being charged.

 Don't do it! My Business is a bowling alley which is a service business and I can't imagine that all my working class and
 seniors would be willing to continue being a customer if they introduce additional 8% on top when money is already hard
 to come by when people are on fixed income!

 More information is needed

 this is going to be a net increase in the cost of my company's services - we are currently PST exempt as a service industry
 (warehousing, distribution and consulting services) - most of my clients are not GST registrants, so they do not qualify for
 ITC and therefore the increase in tax is a direct increase in cost - this will hurt my chances of maintaining foreign clients
 and reduce the likelihood of new customers

 This tax should not even be a consideration. It will have a great impact of my business which is a service business and I
 only have to charge GST on. With this new tax system all my prices will go up and it is hard to survive in this economy as
 is. It should be scraped period.

 Fight its implementation!! It will do no good for any service oriented business and Canada/Ontario is moving away from a
 goods oriented economy to a service oriented economy.

 We sell fuel. It is already taxed enough. Will this affect our bottom line?

 this is another tax grab by the feds to get more money from the consumer

 I think that we should be compensated for doing all the paperwork for the government. If they want the taxes collected
 and reported then they need to compensate for it and not $1500 which is a joke. It takes me almost a full day to prep the
 paperwork and my time is very valuable!!!

 Keep it simple so that it is easily understood.

 Our business is in new home electrical contracting and we would have to get our quotes up to compensate for the new tax
 as at present we only collect GST although ever bit of material we buy has PST on it.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                    55

 I am wondering what is going to happen when we have a native customer who are now PST exempt?? How are we going
 to deal with that?

 A tax grab is a tax grab is a tax grab.

 There are numerous artisan competitors who would fall below the $30000 supplier limit. They will not have to charge 13%
 tax, but I will. That makes my customers see my products as more expensive than that of my competitor and leaves me at
 a disadvantage.

 Wish the government at both levels would have not let all these changes take place at all; each has its own irritations, like
 unnecessary elections they all cost each and every one of us in a very poor economy. Want to quit.

 ELIMINATE IT! It makes my consulting prices go up. Our clients have limited budget, and if we have to charge PST (which
 we do not now), they will spend less on our consulting fees. This is an awful cash grab during tough economic times.
 Arbitrarily having 8% added to the majority of my company’s services takes money directly out of our pocket and will
 discourage me from being a business owner. PLEASE FIGHT THIS TAX REFORM!

 Clients will be mad about paying an extra 8%

 Complaints from our clients plus too time consuming for the remittances

 This will be a pain to all businesses. Right now we collect and remit GST but what will happen with this new tax? We will
 have to pay the 13%, when we are PST 8% exempt, now the government will be just taking more money AGAIN!!! Will we
 be able to apply for the 13% back like we do our GST?? This is another ploy from the government to take our hard earned


 We have been doing business in provinces with HST for years and find it a huge improvement over RST. With a mixture of
 RST exempt and non-exempt customers the RST is a nightmare. Interpretations are often contradictory between regions,
 and there is apparently nobody in the ministry that can provide definitive information. Everything seems to be subject to a
 "notwithstanding" clause. The requirement of keeping and issuing exempt certificates is also a major headache. The cost of
 the administrative bureaucracy for the RST must be enormous. Get rid of it as soon as possible.

 Please keep helping small businesses, like mine, in business. Thank You

 If it is going to be implemented, it should be as consistent as possible, with a minimum of exceptions or different rates.

 This tax will be very expensive and at a time of economic stress will add critical costs which may produce business fatal

 In light of the extended goods and services now include in the single sales tax system, I think the Ontario government
 should consider reducing the RST by 2%.

 This is a huge tax grab and needs to be rescinded by the provincial government. New taxes are not what we need. Job
 creation business incentives are needed to stimulate the economy. Get with it.


 Unless exemptions are put into place the harmonized tax will have a significant negative impact on my industry and other
 service only based industries. The public perception will be one of significantly higher prices as they look at the bottom

 I think it is unfair for my business to have to pay combined taxes. A service is now costing my client an extra 8%. I know
 a lot of my elderly clients have not had a raise of 8% in their pensions!!!! Shame on the government

 We are opposed to a small supplier threshold on professional services. This promotes and supports the semi-retired, part-
 time consultant and places small business consulting groups at a disadvantage in bidding on work. Either the small supplier
 threshold should be established on a project basis to even the playing field (i.e. applicable when the fee collected for any
 one project is under the threshold) or the small supplier threshold should be eliminated so that all players are required to
 collect the same rate of taxes.
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                     56

 It should lower personal income tax rates to offset the increase in prices that are going to occur for expenses.

 How about an explanation in plain English at least a few months before it comes into affect.

 I would prefer that it not be implemented at all, as 50% of our business is in the service industry where there is only GST
 to pay. Now the cost to our customers will increase (due to the additional 8%). Also, some of our competition are smaller
 and do not charge any tax - which could put us at a disadvantage.

 The Single Sales Tax puts our business in a reluctant spot; we provide a service to our customers not a product. Therefore
 we only charge GST so adding another charge will not be accepted lightly by our customers.

 The increase in revenue to the government will be considerable. It will cost the average person a lot more and I see no
 advantage for business owners. We should definitely be compensated for collecting it.

 Simply put it just shouldn't happen. It's targeting small businesses and it's going to affect us in ways we can't imagine yet.
 It's not going to be pretty when our clients have to pay so much more in their services.

 1. you asked how much it will cost to implement the new tax?... the answer maybe everything, likely reduce staff in
 anticipation of a lean time our government is more concerned with frivolous tax grabs than helping honest taxpaying
 companies go ahead and tax Walmart or imports from china not honest taxpaying companies abolish unions that are choke
 the manufacturing sector 2 to curb competition from the underground economy we often reduce our price by the 5% GST
 amount raising that amount to 13% will assure that tax paying companies will not be able to receive these contracts giving
 advantage to those who do not collect taxes and amplifying problem of tax collection! 3 if you want to curb the
 underground economy please reduce the tax rate 13% is unreasonable we have been promised on several occasions that
 the GST was a temporary tax measure and we were very pleased with the reduction of the GST it was the first indication
 that the tax would be abolished as promised this proposal is a complete reversal.

 Eliminate special tax rules, tax everything BUT at a lower rate (ie.-10%) Keep it simple, nobody wants to / or has time to
 decipher miles of tax rulings.

 There should be exemptions. I provide Home Care Service primarily to seniors that are on a fixed income. The 8% increase
 in taxes will definitely reduce my customer base, sales and profit.

 As an Insurance Brokerage it just frustrates and puts us at severe financial disadvantage, compared to other businesses,
 that we do not get any input tax credits. The GST cost my company approx $20,000. This will cost even more. I
 understand the concept and am not in total disagreement but the rules should apply the same to all businesses.

 scrap it altogether, as this won't happen plain, simple instructions without all the legal crap they like to include

 The cost for a home builder to build a home for a customer will rise as we now only charge one tax instead of two. The tax
 should be decreased on the labour portion We expect to have to compete with a cash market more so than we do now.

 We are a marina and as it stands now there is no PST on dockage and storage which will increase the boaters invoice when

 Delay implementation for at least 1 year to allow economy to stabilize more.

 The new single tax along with the current GST should be abolished. My business will lose potential customers as a result of
 having to increase prices.

 Cost of Supply Goods for services were purchased prior to change over date and would not be eligible for ITC even though
 I will have already paid the RST and will now have to collect on the services as well.

 The transitional tax information/details have been very limited to date.

 as a fitness club that only charges GST the 13% proposed tax will be a great burden on both members and business

 My business is a seasonal gift shop. Currently I do not collect GST from my customers, nor do I remit. I pay GST on my
 purchases. I collect and remit PST only, because my annual revenue is small. I am not sure how this will work for me.
 When I purchase will I be exempted both taxes, and therefore remitting the blended tax? Some items in my shop are
 exempt. This will require some adjustment for me and staff. Due to our size and seasonal open schedule we are not
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                  57

 Aside from direct business impacts, the most worrisome aspect of the HST is the handing over of control over tax policy in
 Ontario to the federal government. At this time the province should be maintaining greater control to mitigate the
 consequences of the current economic slow-down.

 We got assessed $20,000 for uncollected PST from a system setup by a chartered accounting firm. They said we could go
 back to our customers to collect, some as much as 5 to 6 years before. We were out of pocket and could really not give us
 a definitive statement of policy. This will eliminate PST auditors whose only job it is to collect extra tax, not audit a

 I would like to know if the savings of the retail sector are going to be greater than the new tax collected from the service
 sector. Good luck!

 This should be designed to replace only the current PST charged and not added for items and services already only
 charged GST only - what a tax grab which is really going to hurt the economy and our business.

 The internet services we sell now are RST exempt. I am unsure of the tax implications on our service when moving to the
 new single sales tax system

 Once again, this is another tax grab and I am getting really sick of it! Not only will we need to charge more to our clients,
 we also have to update our accounting system, do all the paperwork for the gov't, throw out our current forms and have
 them reprinted to accommodate the changes, and it's a big headache for me and staff to put in the bookkeeping changes
 for this new tax. In no way will this stream line things for our business, it will only create frustration and more man hours
 to get this working properly and in the end the only one that will benefit from it is the govt. so they can grab more of our
 hard earned money from us. This is absolutely disgraceful!!!

 This is a rushed in reform by a lazy Liberal government. There was no consultation with small business (80% of that
 government's revenue stream), and is going to force an underground, or black market if you will, economy of cash
 business. I believe that this type of short term thinking will ultimately hurt everyone involved as those of us who presently
 only charge 5% GST, are now going to have to increase it to 13% - a burden on either the customer or the business, or
 both. So do I have to lower my rates and make more money for the government? Or should I punish my customer and
 lose some and still make less money? What a choice?

 PST and GST should not be merged

 It's been poorly communicated and the government didn't listen to any of the stakeholders at all.

 We do not have enough information on how the new single sales tax will be implemented to suggest how it will impact our
 business. Can changes to the system be requested once businesses realize the impact?

 We expect this change will have a net gain for our business and so we support it.

 We currently only collect GST, therefore we now effectively have a single tax system. The only way to offset the negative
 consequences of the HST would be to reduce the provincial component to a level that would be tax neutral for each
 industry. To avoid this needlessly complicated system, the HST should be stopped.

 How come all provinces that have combined (HST) are the poor provinces? It has not helped them and will only hurt
 Ontario and BC!

 Goods that are currently zero-rated for RST should remain as such. To do otherwise is irresponsible to the public,
 regardless to the perceived benefits to the business community.

 IN collecting and remitting taxes we are in essence doing work for the government. This is a lot of paper work and
 penalties for any late remittances are high. We should be compensated for this costly job.

 The switch to a single tax system will be very detrimental to a key inventory item in my business. Currently pure
 gold/silver in BAR format is not subject to any taxes. If the pure gold/silver is in COIN form, it is subject to PST only. If
 there is a harmonization of the two taxes, there will be an increase of 5 percent from the current price. An underground
 market WILL be created where the product is bought/sold and reported as BAR form even though the COIN form is actually
 what is being bought/sold.

 I feel that the government should reconsider its decision to introduce HST
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                                             58

                           Appendix B – Member Survey
                                                                      4.     Given the new single sales tax is to be modeled on the
Ontario Sales Tax Reform Survey                                              GST, how simple or difficult is it to deal with the
                                                                             following aspects of the current GST? (Select one for each line)
Starting July 1, 2010, Ontario’s Retail Sales Tax (RST) would be

converted to a value-added tax structure and combined with the

federal Goods and Services Tax (GST) to create a federally
administered single sales tax. The single sales tax would have a
combined tax rate of 13 per cent. The provincial portion would be
eight per cent — the same as the general RST rate — and the                  Properly identifying taxable products
federal portion would be five per cent.                                       or services                                                
To ensure that our scanner accurately records your answers,
                                                                             Customer reluctance to pay                                  
please mark clearly within the appropriate boxes.                           Properly identifying Input Tax Credits                      
                                                                             Handling zero-rated products or
                                                                              special exemptions                                         
1.   Which sales taxes does your firm currently have to
     collect from your customers? (Select one answer only)

         GST                                                         5.     What are the beneficial aspects of this single sales tax
                                                                             for your business? (Select as many as apply)
         Ontario RST                                                             Single sales tax system will be simpler to understand
                                                                                   from the standpoint of administration, calculations and
         Both
                                                                                 Firm’s bottom line will be improved because of input tax
                                                                                    credits increased to 13% from 5%
                                                                                  My prices will be more competitive as result of increased
2.   Is your business likely to have long-term contracts that
     would result in your products or services taking delivery
                                                                                   input tax credits
     past July 1, 2010? (Select one answer only)                                 My firm’s exported products will not contain embedded
                                                                                    retail sales tax
         Yes
                                                                                 It will provide an advantage over competitors in other
         No
                                                                                 Other (Please specify)

3.   There will be a number of special cases (e.g., point-of-                    None that I can think of
     sale rebates, housing rebates etc.) for the Ontario
     portion of the new single sales tax. Which of the
     following do you sell? (Select as many as apply)

         Books, children’s clothing and footwear, child car seats
           and car booster seats, diapers, or feminine hygiene
                                                                      6.     What are the harmful aspects of this single sales tax for
                                                                             your business? (Select as many as apply)
                                                                                  Customers will not like higher tax rates on some of my
         Newly constructed houses priced at $500,000 and                          firm’s goods/services
         Energy, small vehicles, telecom services, meals or                     Possible problems with converting cash registers to the
                                                                                    new single sales tax
           entertainment to large businesses (i.e. those with
                                                                                  Cost of changing the price of pre-priced items (e.g.
           taxable sales above $10 million) and/or financial                       advertising flyers, catalogues)
         Alcoholic beverages                                                    It will encourage growth in the underground economy in
                                                                                    my sector
                                                                                  It will provide a disadvantage with competitors in other
         Prepared meals under $4.00                                               provinces
                                                                                 Other (Please specify)

                                                                                 None that I can think of
Look Before You Leap! – Results of CFIB’s Ontario Member Survey on the HST                                                                                                        59

 7.    Approximately how long do you expect it would take                                                           Under the current RST, compensation up to $1,500 is
       your business to adjust to each of the following? (Select                                                    provided to vendors for collecting and remitting the
       one for each line)                                                                                           tax. This compensation would end with the transition to
                                                                                                                    a single sales tax system.

                                                               Within a month
                                               Within a week

                                                                                              Not applicable
                                                                                More than a
                                                                                                               11. Should vendors be compensated for collecting and
                                                                                                                   remitting the new single sales tax? (Select one answer only)
       Update new single rate in sales
        equipment such as cash register                                                                          Yes
       Adjust existing pre-authorized
                                                                                                                 No
        payment transactions
       Update price lists, catalogues, sales
                                                                                                                 Don’t know
       Update website or online payment
        software                                                                           
       Update accounts payable software                                                                         Please provide CFIB with any additional comments on
                                                                                                                    how the new single sales tax system should be designed
       Change taxable benefit calculations                                                                      to minimize its impact on your business.
       Respond to changes in input tax
        credit methods                                                                     

 8.    In preparation for the new single sales tax, how would
       you make the necessary changes? (Select one answer only)

            I would make the changes with internal staff resources

            I would need to seek external help to make the changes

            Combination of both

            Don’t know

 9.    What type of changes do you expect to make to your
       business to prepare for the new single sales tax? (Select one
       answer only)
             I expect to have to make only simple changes to manual
              practices or to software
            I expect to have to make moderate changes to my
               accounting or retail systems
            I expect to have to make significant changes or upgrades
             Don’t know, I require more details about the new single
             sales tax system

 10.   Approximately how much would you estimate it would
       cost your business to make the transition to the new
       single sales tax system? (Insert approximate cost)

                 $                    ,                                         .00

To top