HST – Too Good To Be True?

Monday, July 12th, 2010

The birth of HST in Ontario has arrived. I doubt if anyone will be handing out cigars – on second thought, maybe Dalton McGuinty will. Compared to British Columbia, the first step in selling the HST to Ontarians has gone down like an Oceans 11 movie. The tax will probably have a longer life than any of us – sadly, taxes never die; and most of you will by now have received your “bribe cheque”, as many people are calling it. But I am wondering if a bribe today will quell the building anger over the next few months as people see the cost of living in Ontario go up yet again.

Brian Mulroney gave us GST. You may remember that he went from a majority government to holding his caucus meetings in a phone booth because of the hated tax. He never suspected that taxpayers were prepared to respond with such collective retaliation. He underestimated, or possibly misinterpreted just how strongly people felt about the issue even if they didn’t march in the street. It became a life lesson for every politician in Canada that we don’t always say everything we are thinking.

Although Wilmot Township’s taxpayers haven’t marched in the streets in a HST tax revolt (it just isn’t our style), I am convinced that the modest reaction to such a significant increase in taxes does not mean that we believe what we have been told about the tax. In fact, the most common response to questions about the tax is that people don’t believe the government about the personal impact of the HST. They are suspicious and cynical about the cost. They may have been reflecting on the Smart Meter Answer Book which Mr. McGuinty distributed across the province. We were told, as you may remember, that the new system was a way for us all to save money on our electric bill – NOT.  In reality, hydro prices for the same usage were increasing significantly. If you wanted to save money you would have to cook your meals and do your laundry between 9 pm and 7 am – a bit inconvenient for most of us to say the least. The “spin-doctors” where working overtime and what we were “sold” and what we got were very different.

With the G20 ending, some economists suggest that we have entered into a world-wide third depression which they are calling the Long Depression characterized by deflation and continued unemployment. Ontario’s manufacturing sector (our greatest strength) has been destroyed over the last 20 years by NAFTA and globalism in general. The challenges the province faces are of a grand scale and the remedies (if there are any) are multifaceted. Raising taxes seems like the easy way out again. But my conflict with Mr. McGuinty is that  we have been sold the HST with less than half truths; in particular, how higher taxes will increase employment and make all of Ontario more prosperous. If there was any truth to that, I would be the first to suggest doubling taxes. I understand the cynicism among taxpayers because what we are being sold and what we will get I think will be quite different.

Over the next few months the illusions about HST will fade and reality will become evident. If Mr. McGuinty has oversold his “product”  there will be a great deal of anger and possibly voter retaliation to a government which has “ zoomed” us yet again. Sadly, by then it will be too late for taxpayers. Rarely are bad taxes ever repealed even by the succeeding government. If nothing more, we will be reminded of the old adage: “if it sounds too good to be true, it probably is”.

The Scoop on World Food Crisis

Wednesday, June 4th, 2008

The Story:
The OECD and United Nations Food and Agriculture Organization agency published its report on food prices and world hunger prior to a World Summit on Food, June 3-5, in Rome.

Report Findings:
- no relief in the high food prices in the next ten years
- cost of food has doubled in the last 2 years

Causes:
1. Biofuel use of grains
2. Speculators
3. Inflation
4. Drought

Effects: millions of people are being effected drastically – mostly in under developed countries. For example: 60 percent of income is used for food in Bangladesh, 27 percent in China, and just 10 percent in the United States or Germany

Recommended Actions:
1. Urgent and immediate need for humanitarian aid,
2. promote genetically modified seeds,
3. more research on the benefits and problems of biofuels, because the US and Europe are planning large growth in biofuel production.

The world is a very complicated place, because we are all linked together through globalization. I have seen enough of the ill effects of world markets over the last 20 years to come conclusive down on the side of abolishing them. If you are thinking that these ideas are crazy I would challenge you to think outside the box for a moment. The question is why should we let large corporations determine how and what we will and won’t do. Globalization is their idea of giving themselves special priviledge. Goods and services move freely across borders but labor movement is heavily resticted. They move production to a country where they can exploit cheap labour then suite countrires tha try to put up trade barriers to the sale of their goods. They unemploy people and claim it is because they aren’t productive enough. They want the taxes and benefits playing field leveled which really means severe cuts to both. They have set up their own government agencies such as the WTO, and the Federal Reserve, and the World Bank. All of these agencies are being used to subject people and governments to the will of the corporate elite. Why any thinking person would support globalization is really a product of fear and manipulation.

You won’t even hear someone suggest in the mass media that we should reevaluate globalization and NAFA and how other trading groups have negatively affected the people they were promoted as serving. Such thinking would be considered a threat to the control of the multi-national corporations what are close to running the world. The media is the main enablers of their agenda to control and plunder the masses. The Marist expression that religion is the opiate of the people is completely wrong. The mass media is the opiate of the people. It is the single greatest factor in the control of the masses. It guarantees compliance and detracts the masses from demanding governments act in their interest.

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Perilous Times Require Wisdom and Insight

Wednesday, May 14th, 2008

The Stories:

April foreclosures rise 65 percent on year:

Wed May 14, 2008 3:28pm EDT (Reuters) “The total number of U.S. properties with foreclosure activity in April was the highest monthly total we’ve seen since we began issuing the report in January 2005,” James J. Saccacio, chief executive officer of RealtyTrac, said in a statement.

In March, home foreclosure filings had risen 5 percent from February.

The surge in foreclosures indicates an increasing number of homeowners are struggling to make mortgage payments amid the worst U.S. housing market downturn since the Great Depression.

Tame April price rise eases inflation worry

Wed May 14, 2008 3:28pm EDT
(Reuters) Washington, D.C. …………The 0.2 percent rise in the Consumer Price Index (for April) was less than the gain that Wall Street analysts polled by Reuters were expecting, a Labor Department report showed on Wednesday. ………….”One of the many risks the market sees is runaway inflation leading to a very quick re-rise in interest rates. This puts that off, at least in the near term,” said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

The Comment:

Run away inflation is a very realistic outcome of the policies of the Fed. The quote above indicated not if but when it happens. Inflation is like a tax that takes away a percentage of everything you have, including the value of your house, savings, retirement fund – everything. It also reduces your income by increasing prices. Inflation goes where no tax collector could.

The increase in the price fuel and food is inflation on a limited scale, but it affects everyone, except those who don’t use fuel and don’t buy food. As we have discussed the price increases in these areas are not related to the increase in deamand or the reduction in supply. It is the speculation of huge investors use the commodity as a hedge against inflation (they know you have to eat). The first reaction of most people would be to join the “hedgers” but that would be contributing to the problem because it would drive prices up even further. There aren’t a lot of choices, but reducing your consumption is about the best ethical and moral response. By reducing your fuel consumption you avoid purchasing the inflated priced fuel. By reconfiguring your lifestyle and food consumption you reduce demand and avoid paying inflated prices for food.

Consider growing some food this summer. Consider hyper-miling (check out our previous post for details). It really works! I didn’t think I could reduce my consumption that much just by changing my drive style, but you can. It amazing how much money you can save. Other alternative are: move to the outskirts of the community you live in where you can have a garden. The food is fresh, pure and rich in nutrition when you grow it yourself. If that is not possible form a food coop where a group of people have a farmer grow certain food for them. This is one of the best ways for urban dwellers to get good food. Grocery stores often import food even when local food is in season, in order to keep the supply chain open.

The less you consume the less it matters what the price of such and such is. Most people spend the better part of their working career paying for a house. But there is a better way! Building an alternative house not only is cool, environment friendly but a great way to live well and debt free. Some people have built a really awesome house for under $20,000 plus the land. These aren’t far out ideas. They are survive techniques if and when the economy continues wobble. Those who see the danger and take action early will do much better. If the system crumbles, you have done wise thing. If it doesn’t, you have done a smart thing.

Paul Weigel

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Food Crisis: WTO acknowledges that Greed is the Problem

Wednesday, May 7th, 2008

Greed behind food price rises: development bank head

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