Thunder Bay-Rainy River MP has tabled a motion that would cancel a planned $4.3-billion federal incentive payment to the Ontario government, and prevent the HST from being implemented in that province.
Rafferty also is calling on the general public to rise up against new tax scheme by pressuring their Conservative MPs to support and implement his motion.
“This motion would eliminate the $4.3-billion incentive payment that Mr. Flaherty has promised to Mr. McGuinty, which would effectively kill the implementation of the HST in Ontario,” Rafferty said.
“We’ve seen the recent ‘e-Health’ scandal unfold in our province and Ontarians know that the McGuinty Liberals are hopelessly addicted to reckless spending and increasing taxes on families in this province,” he charged.
“Mr. Flaherty and the Harper Conservatives must do the right thing and stop using our federal tax dollars to finance that addiction,” Rafferty stressed.
“They can stop this tax increase in its tracks today if they want to,” he added.
While Rafferty acknowledged the proposed HST may help some businesses increase their profits margins, he believes any benefits to business will pale in comparison to the negative effects that the eight percent sales tax increase will have upon families and household budgets in the province.
“I’m quite sure that some businesses will save a few bucks in all this, but it will be financed entirely by consumers and families who will be paying eight percent more for everything from their gas to camping and funerals,” he said.
Rafferty said the NDP is the only federal party that opposes the $4.3-billion federal payment to the Ontario government and the implementation of the HST in Ontario, but they are not alone in their criticism of the tax scheme.
In a survey of its membership released back in September, the Canadian Federation of Independent Business (CFIB) found that 75 percent of respondents expressed concern over charging higher tax rates on goods and services.
As well, 44 percent anticipate subsequent growth in the underground economy related to their goods and services as a result of the introduction of the HST.
The CFIB is a membership-based group that represents more than 100,000 small business owners across Canada.
Rafferty conceded his motion to end the HST in Ontario has but one obstacle–it requires the support of federal Conservative MPs—but he is calling on the general public to rise up against the tax and pressure their local representatives into supporting M-462.
“This is a challenge to Mr. Flaherty, Mr. Harper, and all Conservative MPs to do the right thing for families, but we know that they will only change their mind if the public demands action,” he noted.
“People must rally, write to their MPs and local media, and pressure the Conservatives in every other way possible to support M-462 and to end the $4.3-billion bribe that is enabling the McGuinty Liberals to attack families,” he urged.
“It’s the only way we can stop this punishing tax before it can be implemented,” Rafferty warned.