Ontario's Progressive Conservative Leader Tim Hudak is attacking the Liberal government for sending HST transitional cheques to criminals convicted of minor crimes.
"And while Ontario families will see their bribe cheques gobbled up by an eight per cent rise in gas at the pump, or higher home air-conditioning cheques, Ontario prisoners will get the HST bribe cheque but won't have to pay those bills," Hudak told a Monday news conference.
"After all, if you're in jail, that's already paid courtesy of the Ontario taxpayer."
The payments are going to inmates serving terms of 90 days or less, provided they filed an Ontario tax return for 2009.
An estimated 1,200 of Ontario's 8,500 inmates in correctional institutions will be eligible for the cheque.
Hudak said it doesn't matter whether the person is jailed for murder or unpaid parking tickets. They shouldn't get any of the rebate cheques to offset the additional costs of the 13 per cent HST when it takes effect on July 1.
The provincial government is essentially following federal guidelines for delivering tax benefits to prisoners, reported CTV Toronto's Paul Bliss.
Singles with incomes of less than $80,000 get three payments of $100. Families with a combined household income of $160,000 will get a total of $1,000 in three installments.
The money is coming from $4.3 billion the federal Conservatives gave to Ontario to ease the transition to the new tax, which will cover items not previously subject to the old provincial Retail Sales Tax.
When the government of Premier Dalton McGuinty introduced the HST in its 2009 budget, it also announced income tax cuts.
It has tried to say the overall effect of the tax will be revenue-neutral to the government. A recent study the government released shows that middle-income earners ($60,000 to $70,000) will pay an extra $45 per year. Low income households will come out ahead, while higher-income households will pay more.
The benefits of the tax are mainly to business. It reduces red tape and only taxes products on the value added by the business. They also avoid having to pay the retail sales tax at multiple points.
Economists say that where similar taxes have been introduced, prices have come down as businesses start realizing savings.
They have also said businesses in jurisdictions with an HST-style tax are more competitive than ones in areas that maintain the older style of sales tax.
With a report from CTV Toronto's Paul Bliss