[Scape]

For starters, it should apply only to products subject to PST and GST

Quote:

The announcement that on July 1, 2010, B.C.'s provincial sales tax will be merged with the federal goods and services tax was a bolt out of the blue.

This seven per cent tax increase on everything that was previously exempt from PST was anticipated by no one.

A partial list of the goods and services affected by this tax increase includes: Restaurant meals, tourism services, residential heating, food products (basic groceries will continue to be exempt), prescription medications, vitamins and dietary supplements, bicycles, many school supplies, magazines and newspapers, energy conservation equipment and airline fares, to name but a few.

The timing and execution of this tax has been terrible as it will hurt our tourism, home-building and restaurant sectors, and exacerbate the job losses they have already endured during the recent economic downturn.

The Restaurant and Food Services Association estimates that the HST will cost their industry a staggering $750 million a year. Tour-ism, a major economic driver in B.C., will also be hit hard.

The benefits of the HST include a decrease in the cost to produce certain goods, which could lower the price of these goods to consumers, a reduced administrative burden and a potential increase in investment into B.C.

Other provinces have adopted an HST, but they took a different course than B.C. Atlantic Canada did this in 1997. However, they also reduced their HST from 19 per cent to 15 per cent -- and it is now 13 per cent. There was also extensive consultations with various groups in the region to mitigate the negative effects of the tax on their industries. In B.C. this has not happened.

A major impetus behind this headlong rush to implement the HST is the silent hand behind this decision.
It belongs to the federal government, which has offered a $1.6 billion-carrot to the province if they adopt this tax.

This is an irresistible incentive to our provincial government as it has just predicted multibillion dollar budgetary deficits in the years to come. But this incentive will only have a one time, short-term benefit, in contrast to the long-term structural effects the tax will have on many of the province's major economic drivers.

There are, however, things that can be done to clear the air and ensure that consumers and businesses attain the maximum benefits from a HST without the negatives. To do this, the following should be done:

- 1. Apply the HST only to those products that previously were subject to both the PST and GST. This would not add any new taxes to products that previously were PST exempt, especially those that are essential to people's lives, such as medical products, home heating, food, etc.

- 2. Drop the HST from 12 per cent to 10 per cent.

- 3. Implement a more effective, streamlined, and efficient tax reporting process that will reduce the enormous administrative burden on businesses.

- 4. Engage in a wide ranging consultation process with businesses and consumers to identify ways to reduce any harm the HST may inflict upon them.

- 5. Importantly, Prime Minister Stephen Harper should assure Premier Gordon Campbell that he will not withdraw the $1.6-billion incentive package the feds offered to our province to accept an HST. This will give the province time to consult widely and implement solutions that will reduce any harm the tax will inflict on our citizens.

There is a saying in medicine, "Do no harm." This should be applied to politics, too, and the HST is a good place to start applying this dictum.

We must not introduce an HST that could hurt our citizens and our business community. Most jobs exist in the private sector and to harm them, particularly during this economic downturn, will exacerbate our unemployment levels.

Initiatives to mitigate the damaging effects of the HST and enhance its benefits for both the consumer and businesses must be implemented quickly for the sake of our province and its citizens.

I can't see the feds entertaining this idea. They already have a clause that locks in the rate for 2 years... just before the next election for Gordo. There may be some modest tweaking but the HST will be here to stay, it may cost the liberals at the polls but Gordo may have the last laugh by bowing out after the Olympics. The NDP may well inherent this but by that time it will already be well entrenched and the NDP like taxes anyway.

[TattoodGirl]

I have my ideas but they would land me in jail, so I will keep my mouth shut

[EdwardRI]

I'm surprised how upset everybody is over the HST. Not that I'm pro-tax, but seemingly only restaurants and airline tickets are what I'll notice.

[Scape]

The fact the feds are collecting cuts out the province stake in how it is collected. May not seem like a big issue now but we have yet to see how that will manifest in the future. I can see some potential conflicts especially when it comes to cross boarder issues. As for the HST itself it is a tax and all taxes will be a drag on the economy at a time when the world is in an economic downturn. Not only that but this HST set at a high rate seems ironclad. Sure, they may tweak it for noisy media savvy special interest groups but for the vast majority there will be little change as this will be a revenue cash cow for a government looking to balance the books. We all know there is no such thing as a bad tax in the eyes of government so once in place it will never be gone so the only way to make it more palatable is to lessen the burden. In order to do that there needs to be a serious challenge to the government and I only see Vander Zalm taking up the charge. Maybe he should take the reigns of the BC conservative party and get their ass in gear for once.

[sandorski]

The HST is actually very good for some Sectors of the Economy, like the Forestry sector. That's still the biggest Industry in the Province. I think it will indeed be reduced in the not too distant future, just for some Political Hay if nothing else.

[Brenda]

Why would it be good for the forestry sector, Sandorski? (just curious...)

[poquas]

Virtually anything that had just PST or just GST will now have both. That includes things like utility bills, cable TV, funerals, hair care, dry cleaning, real estate fees(the real monster!), movie tickets, accounting services, photography, home care and domestic airline fares.


This is the most offensive tax grab in years.

[Zipperfish]

Re: How B.C. can reduce pain from HST

[Zipperfish]

Oh wait! here's an even bigger one!



yeah, baby, that's what I'm talkin' 'bout!

[sandorski]

Brenda wrote:

Why would it be good for the forestry sector, Sandorski? (just curious...)

Has to do with what the PST Taxes and what the GST/HST Taxes. Due to the differences, the Forestry Industry will be Taxed far less than they are now.

[BartSimpson]

Yep, it was a fabulous idea to put the screws to the foreign visitors right as people are making reservations for the Olympic Games. Yep, this will work out just fine because we know in the middle of a global depression that no one will rethink their Olympic plans just because it will cost them a few hundred dollars in taxes. That's right, raising taxes has no effect on tourism. None at all. Uh-huh.

[herbie]

I was going to say they could ditch the Health Care Premiums but the bastards raised those too.
Now it costs MORE per month for each employee plus I lose the commission for collecting the PST (total about $200 increase in my case), AND I have to shell out 7% PST on everything I buy to resell that I didn't have to before.
AH... but I get that back they say.
So I pay $200 a month more and LEND them 7% of my capital, interest free, for a month.

Thanks for nothing you lying scum.

[Brenda]

sandorski wrote:

Brenda wrote:

Why would it be good for the forestry sector, Sandorski? (just curious...)

Has to do with what the PST Taxes and what the GST/HST Taxes. Due to the differences, the Forestry Industry will be Taxed far less than they are now.

I thought the gst/pst=hst. gst/pst now is 12%. Hst will be how much again? Maybe I am stupid, but could you give me a calculation? Example...

[herbie]

Example:
Say the sawmill buys a new blade today. They pay 7% sales tax on the blade because it's used at the mill, not resold to someone else.
After July they'll charge 12% HST on everything they sell that month, deduct the 12% HST on everything they bought that month and remit only the difference. So they get that 7% back a month later. More or less.
People who buy a lot of things for expansions and day to day running will save somewhat. Until the last month they operate when they stop buying.

My customers will see no difference buying a computer part. But they will now pay 12% instead of 5% for a virus-cleaning, a tune-up, a diagnosis. Only business customers will get to claim it back. Joe Public gets hosed another $10..

[Brenda]

herbie wrote:

Example:
Say the sawmill buys a new blade today. They pay 7% sales tax on the blade because it's used at the mill, not resold to someone else.
After July they'll charge 12% HST on everything they sell that month, deduct the 12% HST on everything they bought that month and remit only the difference. So they get that 7% back a month later. More or less.
People who buy a lot of things for expansions and day to day running will save somewhat. Until the last month they operate when they stop buying.

My customers will see no difference buying a computer part. But they will now pay 12% instead of 5% for a virus-cleaning, a tune-up, a diagnosis. Only business customers will get to claim it back. Joe Public gets hosed another $10..

I understand your example, but I can't see how that is good for the whole industry persay. It is only good for the period now, till it is installed. And that is for every business. What after that? We will all pay. That means we all have 5% less to spend. I can't see that is good... But hey, who am I