An Ontario Chamber of Commerce (OCC) representative joined local business owners from Meaford and The Blue Mountains for breakfast and a conversation about taxes.

Derek Picard, senior policy analyst, small business owner and Canadian tax aficionado gave a verbal presentation on the planned tax reform in Ontario, including the new harmonized sales tax (HST).

The bottom line of Picard's pitch was that HST was part of a tax reform bundle long awaited by the Ontario Chamber of Commerce, one that theoretically brings relief to every taxpayer and, most importantly, encourages investment in Ontario.

Currently, investments in Ontario are dwindling because of the high cost. This tax reform, should change that, according to Picard.

Aside from the new HST, which combines Provincial and Goods and Service tax into one Harmonized Sales Tax, even for items that are now PST exempt, the reform bundle will bring relief to individual and business taxpayers, if all goes well.

Picard said the bundle will lower corporate tax and personal tax as well as give credits to businesses. Essentially, there will be fewer deductions from pay cheques and more money in the hands of wage earners, which according to Picard, will drive down the cost of operating a business and thus pass on savings to consumers.

"We need investment and reduced barriers," he said. Adding that it was important for Ontarians to be taxed on consumption and not before they receive their pay cheque.

Currently, Picard cited that the businesses in Ontario pay 40 per cent of the PST collected each year.

The timing for this tax shake-up, according to some at the meeting, is "devastating," given the economic slump.

Picard disagrees.

"Now is the time to increase investment," he said, adding that increased investment because of lower costs and currently low interest rates will make Ontario and the province's communities more attractive as well as boosting the global and local economy.

Business owners at the meeting, many of whom work in a tourist-dependent industry, were worried about the sudden addition of PST to services and items that were once PST exempt.

Items like lift tickets.

"There will be impacts in every industry," said Picard. "Across the province the changes will net out a positive impact ... there are circumstances where that may not be the case.

 He added that the Ontario Chamber of Commerce will be watching the Ontario government closely as these changes are implemented, to make sure everything is going according to plan, and catch adjustments that should be made.

The PST changes and tax harmonization are slated to be implemented July 1, 2010. The Meaford Chamber of Commerce will hold another event similar to this one in the fall, anticipating more questions as more information trickles down to local businesses from the provincial government and OCC.