Sunday, November 15, 2009

Ontario's Big Mac Tax Axe

Ontario will be exempting fast food under $4.00 from 8% of it's 13% HST coming up next July.
The exemptions announced Thursday on food or beverages heated for consumption, salads, sandwiches; platters of cheese, cold cuts, fruit and vegetables will cost the province $325 million in revenue, Duncan said, but the plan will more than pay for itself in jobs created and by expanding the tax base overall.
There are a couple of quirky things about this, from two angles. First of all, health care needs less strain on it, rather than having more obesity, heart, stroke and other problems associated with over consumption of garbage food, that cheaper junk may assist in doing. Second, a customer might buy individual products like fries, or a drink, or a burger, separately for under $4.00 but if they buy a combo, then it goes over $4.00, and then all the same products now become taxed.

Food and beverages heated for consumption will presumably cover many junk foods burgers, fries, hot dogs, spam-type meat sandwiches, etc., so is that a step forward for society? Or, healthcare, which is a huge piece of a provincial budget? Making it easier to have future health problems seems to be part of Ontario's HST plan. Perhaps the 591,000 net new jobs over 10 years will include many more health professionals to help deal with a combo of health problems trash food contributes to.


Anonymous said...

I agree with you Charlie. There is a commerical I cannot remember which one now , but a guy is standing on the corner and thses people come by and take his money, and say they will be back for more. I feel the govenment keeps on taking and taking , they might as well hold me upside down and shake me until I have nothing left. I think this HSt exempt on JUNK is GARBAGE

charlie said...

Well said Inky!:)