On July 1, 2010, new “Eco Fees” hit Ontario consumers. The levies by the McGuinty Liberal government have been placed on thousands of household necessities, ranging from detergents to pharmaceuticals, and safety products like fire extinguishers. The levies have been part of a phased in program that came into effect two years ago, and is overseen by Stewardship Ontario.
Under the program, manufacturers pay the province a levy intended for recycling their products. However, most levies are always passed onto the consumer resulting in additional costs of a few cents to a few dollars (per product). It is also questionable whether or not the money collected will actually be used for its “advertised” purpose, or whether it will be used effectively or efficiently. Many times government taxes are misused, wasted, and spent recklessly.
Common products include:
– aerosol containers.
– rechargeable batteries.
– corrosives and irritants (bleaches, drain cleaners, detergents).
– toxic & flammable products.
– syringes & needles.
– pharmaceuticals (prescription medicine, over-the-counter drugs, and natural health products).
– fluorescent bulbs.
– fire extinguishers.
Again, the number one method the government uses to make money is taxes (whether in the form of service or usage fees, other charges, or officially named taxes). As we’ve been discussing here at the Investment Blog for a long time now, this is only the beginning. Governments need to pay for their massive deficits and spending. And when the government needs to pay for something, they turn to their number one revenue source, your bank account!
– Investment & Economic Outlook 2010
Thanks & Happy Investing! — The Investment Blogger © 2010