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McGuinty softens HST blow to Real Estate Buyers: Is it enough?

June 22, 2009

Last Friday June 19th, we learned that Ontario Premier Dalton McGuinty is revising the proposed harmonized sales tax on new homes.

The revision is just that a revision – we’re still facing a HST on Real Estate. It is clear that the consumer driven uproar over the HST is hitting home. The changes are clearly driven by this and the intense lobbying by the home builders and Real Estate associations.

Under the changes to the proposed HST, Ontario residents that are buying a new home will only be charged the HST on the amount of the purchase price over $400,000, rather than the entire value of the home.

As an example, if you buy a new home in Oakville after July 1, 2010 for $500,000, the additional HST tax would now be $6,000 instead of the initial and ludicrous $30,000!

So instead of buying the government a swimming pool, you’re now giving them your stainless steel appliance package.

Is that easier to swallow? Let your opinions be heard – comment and let’s tell Premier McGuinty what we think.

Here’s a good article by Karen Howlett from Saturday’s Globe and Mail.

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