BUSINESS, LOCAL NEWS

BRODBECK’S “LYIN KINGS” TAX – The Real Cost to You

622_21996_P
SEARS GE RANGE

Much has been said about the Selinger Governments move to raise the PST by another 1%.

Nobody said it better than Winnipeg Sun Columnist Tom Broderick when he described Premier Greg Selinger as the “Lyin King” after exposing his laundry list of broken promises, lies and deceit.  No point for me to go there, but what I will do is break down some numbers for the average middle class earner and demonstrate the impact of the PST hike.

Jane Doe is an average middle class wage earner making $40,000 per year.  After taxes Jane is left with bi-weekly net earnings of $1,162.  Jane plans on doing a home renovation project and wants to buy a new GE Cafe Self-Cleaning Slide-In Dual Fuel Range, price tag $3,000.  Under the current tax structure Jane is required to pay PST (7%) and GST (5%), those numbers breakdown as follows:

  • $3,000 Purchase Price
  • $150 GST
  • $210 PST
  • $3,360 Total Price

Under the proposed 1% PST hike the numbers look like this:

  • $3,000 Purchase Price
  • $150 GST
  • $240 PST
  • $3,390 Total Price

When you do the math, the 1% GST hike translates to an additional $30 in taxes on just this one purchase alone.

Jane’s bi-weekly net earnings of $1,162 dollars translates to $14.50 net dollars per hour based on an eighty (80) hour work week.

Under the current tax structure Jane would have to work a total of 24.82 work hours (3.1 work days) to cover the total tax bill of $360.

Under the proposed tax structure she would have to work a total of 26.89 work hours (3.36 work days) to cover the increased tax bill of $390.  That translates to an additional 2.07 work hours.

It seems to me asking middle-income tax payers to work 3.1 days to cover the tax on the single purchase of a range is already pushing the upper limits of civic responsibility.  Asking that tax payer to work almost 3.36 days to cover the tax bill is downright offensive.  Lest we forget, this purchase is being made with after tax dollars.

By the time Jane gets her hands on her net pay she has already paid $7,220 in personal tax, $1,807 in CPP tax and $752 in EI tax.

Tax payers should be outraged that Mr Selinger is forcing Jane to sit at her desk for over two (2) more hours to pay for her range when he promised all Manitobans his Government would not raise the PST.  Increasing the burden on tax payers like Jane will force her and other Manitobans to cut their discretionary spending.  This will undoubtedly have a negative impact on our economy.

The Government wants you to believe the 1% hike will only cost you a mere $300 per year while Conservative MLA Brian Pallister suggests the increase will cost an average family of four $1,600 per year, a number that balloons to $16,000 when you consider the impact the tax will have over its “proposed” ten (10) year life span.

From 2002 – 2012, the NDP Government expanded the PST three (3) times to include a range of services like insurance premiums and salon fees.  The 1% PST hike is estimated to rob Manitoba tax payers of approximately $278 million dollars annually.

With numbers like that, don’t be surprised if people in Manitoba start to slowly migrate outside of the borders of the Province.

Other relevant numbers:

Jane has to put in 233.79 work hours (29.22 work days) – to pay for the total cost of her new range.

Share your thoughts - we value your opinion!