Posted: Sat Aug 29, 2009 1:40 pm Post subject: Where the Rubber Meets the Road
Another tax from the weasel who said "no more taxes".Very soon the existing Enviro tax on tires will be doubled to over $6 per tire
"If you're planning on buying new tires for your car, do it before Tuesday, unless you don't mind forking over an extra $5.84 per tire.
That works out to $6.60 after tax, a tax Dalton McGuinty claimed would not happen. In 2005 he stated, "There'll be no tire tax. Everybody get that one? There will be no tire tax."
They still stand by that claim.
You see the $5.84 is actually the Ontario Tire Stewardship fee; a fee that will be used to store, transport, recycle, and process used tires. It will also fund research and development and be used to educate consumers.
So it's the Stewardship fee that is taxed not the tires. Ingenious isn't it? Actually, its sophism; a clever but invalid argument. Deception is also an applicable word.
The government is adamant about not calling this a tax.
Just like McGuinty's health tax, er, health premium.
Paul Hyatt, owner of Superior Tire ran a series of 10-second radio ads advising people to "Beat the tire tax."
Shortly thereafter he received an e-mail from Waste Diversion Ontario, which was founded by the Minister of Environment, stating: "Describing the fee (levied on stewards) as a tax may be considered a false, misleading or deceptive representation under the Consumer Protection Act."
"A pig is still a pig whether it has lipstick on it," Hyatt responds.
Currently each tire you purchase has a $3 disposal fee added to its price. Some dealers build it in to their price quotes, while others add it on post quote. This fee enables dealers to hire government-licensed hauler to remove the tires from their stores.
On Tuesday, that $3 fee will be replaced by a $5.84 fee plus tax, ($6.60) and the government will then take over all aspects of collecting, storage and recycling.
Hyatt believes adding just a few cents to the current $3 fee would allow the industry-run program to recapture most of the remaining 10% of used tires.
My concern is putting this directly into the government's hands. I don't believe they're capable and I question whether or not they'll be above board.
For example, in 1989 the provincial government implemented a $5 tire tax, and within two-and-a-half years they had collected $11 million, earmarked for recycling, yet only $2 million went there, which sent the Ontario Tire Dealers Association and their lawyer to Queen's Park.
By 1993 the tax was toast. Public outcry scrapped another such consideration just four years ago.
There is also disturbing fear among numerous dealers that much of the money collected will end up flowing into the U.S. One American firm has recently purchased three haulers and is setting up processing plants in Ontario.
Of the $5.84 the government collects, 80 cents goes to the collector (dealers), $1.08 to the haulers and approximately $3 goes to the processors, depending on recycling agreements.
In addition Hyatt feels, "There will be tires crossing borders, both provincial and national, without paying taxes."
So there you have it: The no tire tax-tax. Why don't we just call it a tip? I think I'll just pull my tires off and ride the streetcar tracks: "Next stop, honesty"
Lie the electronics tax that added $12 to the cost of a computer monitor, this one is sneeking in the back door. BTW, I left the monitor on the counter when told I had to gough up the $12. Bought a used one for $80 and it works perfect without any taxes.
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