I live in Ontario, and currently I have to collect a 5% Goods and Services Tax for my labour costs. Materials are hit with an additional 8% Provincial Sales Tax. The provincial government just announced in their latest budget, that they are “harmonizing” The GST and PST.
That means that all my labour costs are effectively increased by 8%! Why, why is the government making it so hard to compete legally with all the “under the table” contractors!
I’ll bet that the Premier watches Holmes on Homes and shakes his head, “who could do such shoddy work?” when the real reason for it is that the guy the people hired paid no taxes, therefore subitting a quote of about 10% less than anyone legit.
I just need to vent. I just started up 2 years ago, and I’m doing okay, but now, it gets harder. I’m also getting married in 3 months. And I’m paying for the wedding. And my fiancees school. And car. And her rent.
I’m not trying to get pity here. I’m just frustrated.
Replies
But you get "free" health coverage!
LOL... I just read today that there are more CAT scan machines in the state of Tennessee... than there are in the whole country of Canada.... their medical coverage system is and stays broke...
people who live in fear are easy targets... everyone who wants "gov health care" what they are really saying is... "I want someone else to pick up all or part of the cost for my healthcare"
I'm no longer amazed at how dumb ... smart people can be...
p
I have found that also. In NY we have subsidised health care, income guidelines, where you can purchase ins for about 30% of commercial cost. Do people buy it? Some, but we have a lot of people that "can't afford" even subsidised health care.
I wonder when people are going to wake up to the problems with "free"health care.
I know this is not always the case... but the people that have no problem paying $400mo for a car note are many time the exact same ones that "can't afford health insurance... it's choices you make and what you choose to buy many times... I drive a 11yo paid for car... and choose to pay for insurance.... yeah i'd prefer a new truck... but
it's choices you make
P
I have worked with people like that.
I don't understand them. One told me if his medical bills got to big, he would just declare BK.
I just read today that there are more CAT scan machines in the state of Tennessee
I wonder if they were sent here by liberals because we are a conservative, low tax state and will soon be required to have our heads examined. ;)A La Carte Government funding... the real democracy.
I'm a healthy guy, I hardly get to use that "free" health care. But dental on the other hand... geez I should floss more.
I'm a healthy guy, I hardly get to use that "free" health care. But dental on the other hand... >>>>>>>>>>.
Think of your increased tax, next time you have that "free" procedure done!
We are happy to share out CT and MRI machines, just bring that good Canadian currency!>G< I think the hospital in Watertown has both machines.
A couple of points in your favour - remind all of your customers about the $1350 fed rebate for home improvements....I don't think you can claim that without a proper receipt, which will have to show GST number.
Also there's the new home / substantial renovation GST rebate - again, proper paperwork has to have the numbers on it.
I live in NB, we've had HST for years. After a while, people get used to it.
I see what you're saying about the GST number. No receipt i.e. cash job, no rebate. The customers I deal with are not too excited about a 15% rebate they will have to wait till taxes to get. (And have to spend 10,000 bucks to get) They would rather have the job lower to begin with. My brother just bought a new house, just to find out the builder included a clause that gave the builder the rebate! Read the fine print!
Its very trying to do things right, when all the customers care about is what colours will match the cabinets. I can show similar samples to wow the customers, just as any company can, but if my quote is higher, too bad!
Now, if I were a company with loads of experience to back myself up, people would be willing to accept a higher quote. But I don't have that. All I can do is project confidence, and show that I will do whatever it takes to get what they want. But sometimes it isnt enough.
Obviously I am young and have a lot to learn about the business, and the world around me, but I throw these things out there not to make myself seem righteous, but to learn from others. What I have learned from those more experienced from myself has got me to where I am, and from that I am forever grateful.
That is why I visit this site, it is full of hardworking people who seem to love sharing their wealth of knowledge to people like me, who are ever eager to hear it. I have learned so much just from reading others questions answered by the many knowledgeable people here. Many times I use things I've read here, in meetings with clients, pawning it off as if I myself had figured that out! When it comes down to doing it, I have the knowledge, but not much experience. I just have to make sure I do it right, even behind the walls...
I live in NB, we've had HST for years. After a while, people get used to it.
Just like here to the south, slavery a bit at a time is palatable.
Joe H
After a while, people get used to it.
Areas of WA state will go past 10% sales tax first of the month. Ya get used to buying all you can on the internet, even driving to Portland, OR for big ticket items. Drive older used cars (yep the 10% levied on new cars also, even used).
Ya get used to buying all you can on the internet
Betting some form of internet sales tax makes it through our current congress.
Something every politician sees as "stolen" from their rice bowl.
Joe H
The taxman is already going after some of the sellers on EBay for income tax. Charging an internet sales tax, as you suggest, sounds very plausible.
Charging an internet sales tax, as you suggest, sounds very plausible.
You want to pay more taxes?
Joe H
No!
I just think that your prediction that the "powers that be" will attempt to implement such a tax is quite plausible.
Edited 3/27/2009 12:05 pm ET by sisyphus
Edited 3/27/2009 12:14 pm ET by sisyphus
The thing about the HST here is that it replaced a separate 7% fed tax and 11% provincial tax with a 15% combined (now reduced to 13).
However, before the 7% fedtax, there was a fed tax of 13.5% on the wholesale cost of manufactured goods, that was buried in the price of everything. So trading a 13.5% of wholesale cost for a 7% on retail worked out fine on most things.
The HST in Ontario would be more palatable if the rate was less than the sum of the two taxes it replaces.
I remember listening, about 20 years ago, to a federal bureaucrat explaining on the radio, how the introduction of the GST was going to eliminate the underground economy by creating "a paper trail". I think I laughed out loud on the spot. The GST of course just motivated the producer and consumer to cut the government out of the transaction leading to a loss of sales tax and income tax revenue. As you say, the new harmonized sales tax (HST) in Ontario will exacerbate the problem.
I am not looking forward to paying an extra 8% on heating, electric, insurance and water bills etc. . Higher taxes are the inevitable result of government spending which is imprudent or grows too quickly. The sad part is that ultimately the electorate has noone to blame but themselves although as individuals you and I are largely powerless.
I suppose the good news is that as a broad based tax the HST will also be collected from all consumers in the province be they residents or not and regardless of whether their income is legally derived or not.
Edited 3/26/2009 8:00 pm ET by sisyphus
a good liberal never saw a tax they dident like
8% more for fuel... we pay about $4 now. Fluctuations that affected our American brothers affect us about 40% more due to percentage based fuel taxes already without the 8% tax grab we will need to withstand.
I am concerned for many people in Ontario in 2010. Tax increases during a recession or even a recovery will likely plunge us into the early eighties again when free trade siphoned all the manufacturing jobs.
Now, I typed out a rant here but what I have to say is that this is disappointing. The feds gave us a bit of a break and this change will rug all the renovation-general carpenter types next year.
I know our people will be fine, but realistically, July 1 2010 will be a very dark day for contractors in Ontario.
L
GardenStructure.com~Build for the Art of it! Decks Blog
I feel for you, fella; just another thing to have to compete with... You might offset that by keeping up with your equipment depreciation on your IRS form....
Here in Texas, we have property taxes and Sales Taxes varying somewhat by city by city, but no state income tax...yet.
Your "vent" helped me remember to count-in my new roofs' state sales tax on my income tax for 2008... I got the roofing company to send me what their sales tax amount was as it was surely calculated but not specifically posted in their bid... Just over $1,800...that's a big documented deduction for me and hopefully for anybody else reading this...
Hang in there, do your paperwork like the government people do, and beat them at their own game.... ;>)
Bill
It sucks when by legislative fiat you get stuck with higher costs and no legal alternative.
I heard the local cabinet minister (Jim Watson) on the radio explaining that "smart people" will understand that they will pay less tax under the new system. I still have not read all the details yet but my understanding of the HST proposal leads me to conclude that Watson is either stupid, ignorant or lying. I prefer to be nice so I am going to assume he is ignorant.
Edited 3/27/2009 11:40 am ET by sisyphus