Our feelings on the HST – July 1, 2010
Our feeling on the HST – July 1, 2010
Daniel Cumerlato, Founder
We’ve made no secret of our dislike of the new HST coming into the reality of all Canadians after July 1st, 2010. We’ve commented on it on our radio show and to anybody who would listen. This new idea from our backwards thinking government representatives affects us all… in a negative way.
It’s very bold to see the campaign the CRA has gone on now that we’re getting closer to the date. Emails, articles, flyer and broadcasts as talking about how great the HST will be… how the new tax breaks with save you all this money… how businesses will keep more. Now I can’t claim to an expert on the subject. I’ve read as much as I could, and for what I did see, it’s hard to believe many of the claims that attempt to make HST seem like a good idea.
After HST was first announced, everything was to be taxed (including books and groceries). Then an uprise occured and things started being added to the list… almost like somebody was caught with their pants down.
The truth is that many of the once tax exempted items are now going to be fully taxed. For folks just trying to get by pay cheque to pay cheque, the feeling of being trapped is only going to get stronger. On the extreme side are big purchase items such as cars and houses. Did you know that for houses, if you’re rich enough to get one worth over $400,000, then you’re still exempt from PST! What about those of us who aren’t in that tax bracket?
…and now for the main reason I’m typing this… how will this new HST hurt the Canadian actor and actress?
We are side-by-side with the struggling actors/actresses of Hamilton and Ontario. This isn’t the only reason why I respect any business that gives back to the acting community, but also for the idea that entertainment is a big part of our lives. A great play, show or movie is an escape from the pressures of life, one that allows us to release some of that stress. So why do some feel the need to make it so difficult for great performers to make a living. The term “struggling” isn’t used for fun… it’s damn hard to make any money in this profession!
Governments before Harper actually cared when they came up with a tax break to help theatre companies pay more. A PST break was given if you were hiring Canadian performers for your shows.
And now, with many other positive endeavors of previous governments, the theatre break is now dead with the invent of HST…
—————————————————————————————————————
From the Hamilton Spectator – “HST will hurt theatre companies” by Gabe Macaluso
“The supply of Admission to a place of amusement, seminars, an event or an activity would be deemed to be a supply of service for the purpose of HST.”
– Bill G 162, June 5, 2009
Effective July 1, 2010, performing arts theatres such as Hamilton Place and Theatre Aquarius and community arenas located in Ontario will no longer be exempt from the 10 per cent entertainment tax.
Effective July 1, all tickets sold for entertainment at these facilities will include GST (5 per cent) + PST (8 per cent) = 13 per cent HST.
Organizations such as Opera Hamilton, HPO, Geritol Follies, Pearl Company, Hamilton Theatre Inc., Canadian Ballet Youth Ensemble, etc. will be negatively affected as they will be forced to increase their ticket price by 8 per cent for tax purposes.
This will impede them from increasing ticket prices due to increased production costs, etc. The public won’t accept these combined increases.
Those of us who have purchased tickets to sporting events such as Tiger-Cat and Bulldogs games and concerts at large facilities such as Copps Coliseum and Ivor Wynne, will receive a break of 2 per cent on the entertainment tax we have paid in the past.
What was GST (5 per cent) + entertainment tax (10 per cent) = 15 per cent will, effective July 1, be reduced to the 13 per cent HST.
In view of all that, I would strongly suggest the following:
1) For those purchasing tickets to events scheduled to play after July 1 at Hamilton Place, Theatre Aquarius and the like, buy them now and save 8 per cent on a ticket. Hamilton Place and others such as Opera Hamilton and the Hamilton Philharmonic Orchestra should sell post-July 1 events now and inform the public of 8 per cent savings on their tickets.
2) For those purchasing season’s tickets for the Ticats or Bulldogs, ask to have your credit card processed after July 1 and save 2 per cent on the ticket price.
The reason I am interested in this is because many moons ago I and a number of theatre managers across Ontario appeared before the minister of revenue pleading our case that lifting the tax exemption would do irreparable damage to the performing arts, especially those of us with resident tenants such as opera companies and orchestras. We won the day and the exemption remained.
Unfortunately, I don’t believe many in the arts community know what’s coming. If they did, they would be up in arms as they were when the Ontario government was planning to lift the exemption.
Gabe Macaluso was managing director and CEO of Hamilton Entertainment and Convention Facilities Inc.
http://www.thespec.com/article/736645
—————————————————————————————————————
We still hold on to a little bit of hope that the Harper government will back off on such a drastic change to our country. A change dreamed up when financial times were tough, and even though our markets have rebounded, still the governement spoon feeds us on the idea that HST is the only way to fix things. What I’m not sure of is, what are they trying to fix?
Leave a Comment