It’s time to reform GST on new homes: “It’s not too often you hear the words intelligent and tax reform in the same sentence, but that’s what the C.D. Howe Institute is saying about Ontario’s approach to taxing new housing under the HST.”
You’re currently reading “It’s time to reform GST on new homes,” an entry on B blog!
11.10.09 / 2pm
The government introduced the HST to create jobs.
The Toronto Dominion Banks says the HST will reduce cost of doing business in Ontario by roughly $5.3 billion and that the majority of these savings will be passed on to customers within the first year.
The majority of items we purchase – 80 percent – will see no tax change at all. TD estimates prices, before tax, will fall by almost 1 percent. And, studies looking at the Atlantic Provinces found that consumer prices fell following harmonization.
The recent TD report found that about 90% of new homes are priced below $500,000 (and 75% of new homes are priced under $400,000).
The report also stated that if the 3.2% cost savings for builders is passed through the price of a new home under $400,000 will fall – for example, a new home priced at $400,000 today could cost as little as $387,200 after July 1, 2010.”
The best thing to get new homes selling is to get people working and put more money in their pockets. Economist Jack Mintz says the HST will create almost 600,000 new jobs. And the TD Bank says the HST will save businesses $5.3 billion and that the savings will be passed on to customers.
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