HST

Yes CJ, its story time with Gerry again. Actually, probably more of a rant.

In BC, the provincial government has recently announced that it will be changing our sales tax to a blended HST (Harmonized Sales Tax). We currently pay a 7% sales tax, on selected items, at the cash register.

PST has allowed provincial governments across the country to decide which purchases should be exempt from paying extra tax, and which purchases help pay for government services. Someone in a wheelchair has been exempted from paying tax on their ride. Very fair. Funerals and haircuts have been exempt. Funerals are expensive, so good exemption. I don’t understand haircuts, but I can live with it; I still have hair.

Taxes are one of those things in life that are certain, like death & telemarketers. Taxes, once enacted, are hard to get rid of, like death & telemarketers. New taxes are usually good for the economy, at their inception. I’ll explain that point later.

Often forgotten, income tax was a temporary measure during the First World War to pay for our war machine. Most politicians start out sincere and dedicated to doing the right thing. Some retain these principles, some don’t. Case in point, we still pay income tax.

I was working for a business machine supplier in Ottawa when Brian Mulroney’s Tories brought in the GST, in 1991. Our company’s sales force was salivating over the prospect of selling between $2 million and $5 million of stuff to the new GST department. The GST was great for the Ottawa economy.

In 1997, New Brunswick, Nova Scotia, & Newfoundland were the first to adopt a HST. I have no recollection of any problems at the time with exemption issues. Part of their reasoning at the time was to turn over the administration of tax collection to the federal government; a non-duplication or un-duplication of services. It actually did save them some money. The HST was also partially in response to the perceived double-dipping of taxes.

Double dipping on taxes was explained to us by various groups, including The Canadian Taxpayers Federation & the National Citizens Coalition. They told us how merchants were totaling a purchase, calculating the PST, totaling these 2 amounts, then calculating the GST.

GST being calculated on PST. This was horse hockey (Identify the quote!).This type of ploy is a political tool I call Fiction for Friction. Make up something that sounds possible, just to get some folks all worked up. The outraged usually end up shouting down everyone, while the reasonable are trying to say; “Wait a second, that’s not true!”

But back to BC. Gordon Campbell’s liberals are getting $1.6 billion from the federal government to enact the HST.

Pause. Think. React.

Why are the feds bribing the BC provincial government with my money? At least Ontario’s Dalton McGuinty is not being duplicitous about his $1.6 billion bribe; McGuinty will be sending Ontarians checks for $1000.

Colin Hansen, BC Finance Minister, has embarked on a campaign to tell us that the HST is good for us and that it is revenue neutral. He does not tell us who the “Us” is that this is good for. Is the “Us” actually the US? Or is it code for something else. The Usual Suspects?

As far as it being revenue neutral, I have heard estimates that the average British Columbian will pay out an extra $500 to $1000 in sales tax. I am reminded of the Frasier Crane line to Cliff Clavin in Cheers; “Cliff, what color is the sky in your world?” Colin,….

Stephen Harper, once president of the National Citizens Coalition, which opposes higher taxes, is bribing Ontario & BC into raising taxes on their constituents, with federal taxpayers’ money. My 84-year-old Mom in Québec is contributing to Gordon Campbell’s fund to hide his deficit. Not even Cliff Clavin could explain this one!

I miss Alberta.

Cheers folks.