When British Columbians rejected the Harmonized Sales Tax in the 2011 referendum, they were promised things would go back to the Provincial Sales Tax normal. But an independent panel has recommended adding taxes to things that virtually every B.C. family buys -- a plan that will increase our already sky-high cost of living.
The report from the Expert Panel on B.C.'s Business Tax Competitiveness includes recommendations for adding the seven per cent PST to basic telephone and cable TV service, snack foods and school supplies -- items that all used to be exempt. It's a $159 million tax grab -- even if the government follows another panel recommendation to give $25 million more in sales tax credits to lower income families.
Ask a parent about the cost of school supplies, and you will likely hear it's a major struggle every September to get items on the ever-growing supply list. It's not just pencils and notebooks anymore; schools ask parents to purchase emergency supplies like foil blankets, light sticks, tissue, water and food. Adding another seven per cent of tax to those purchases will make things even worse.
The panel claims it's unfair to satellite TV users to tax them but not tax cable; they also say telecommunication bundling makes it difficult to collect the tax. No arguments here, but instead of recommending a tax cut for satellite subscribers, they want to spread the misery to all.
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They're also after your Smarties. While some suggest that taxing snack food will curb obesity, neither research nor practice has bore that out. Even leading B.C. doctors agree that taxing snack food will do little, and that it is incredibly difficult to implement.
"Research actually shows little correlation between individual behaviours and body weight: many who seldom consume such foods are overweight while many who do, are not," said Dr. Paul Martiquet, an adjunct professor at the UBC School of Medicine and the Medical Health Officer for Powell River, Sunshine Coast, Sea to Sky, Bella Bella and Bella Coola.
Added Dr. Lloyd Oppel, head of the B.C. Medical Association: "I think it would be difficult to draw up a list of things that were truly bad versus things that are truly good and be able to implement a tax on that basis."
Denmark tried a food tax but killed it after one year, noting it increased prices and administration costs and put Danish jobs at risk. Many Danes were crossing the border into Germany to avoid the tax all together.
Even the Ministry of Finance officials assigned to crunch the numbers for the tax panel knew this was simply a tax grab. In a note unearthed by a Freedom of Information Act request, bureaucrats called the snack food tax "purely a revenue measure" and remarked that it would be very complex to implement.
Whether HST supporters like it or not, the public spoke and the PST is coming back. It's not a great tax, but it's the one democracy wants. Altering exemptions now will be ignoring the referendum results and raise the anger of already overtaxed B.C. residents.
Adding PST to previously non-taxable items is a tax grab, plain and simple, and will increase tax burden and cost of living, two things British Columbians are already groaning under. If this burden is as important to the government as they claim, Finance Minister Michael de Jong must flat out reject those proposals.
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What we voted for Liberals was a return to the old system ...tax exemptions intact!
Not only has our debt load been increased by 1.6 billion we have to pay back to the Federal govt, not only have we lost the estimated 30 million in savings with regards to collecting sales taxes, but we now have to increase taxes to make up for the lost revenues due to rejection of the HST. Just where did people think the BC govt was going to find that 1.6 billion, if not from increased taxes?
Why a majority of BCers would vote, in effect, to increase taxes while simultaneously accepting a loss of 1.6 billion in Federal funds is a question I don't expect to be able to answer. Some people just enjoy being masochistic, I guess.
I wasn't sent a referendum question about "how" the HST was implemented, nor was I sent one about whether or not it *should* have been implemented.
I was asked, in essence, "Do you agree that you should kick yourself in the nuts and accept higher taxes, to protest against, errm, higher taxes?" It was *very* easy to vote No to that...
Are you in favour of extinguishing the HST (Harmonized Sales Tax) and reinstating the PST (Provincial Sales Tax) in conjunction with the GST (Goods and Services Tax)?
I see nothing about tax RATES in this question, nor do I see anything concerning how the PST would or would not be handled, regardless of the results of the referendum.
The question was simple, scrap the HST and have separate PST and GST, or not. The negative consequences associated with scrapping the HST were obvious and accessible to anyone interested in looking for them.
Suggesting that the government of BC owes something to BCers, due to the referendum, other than scrapping the HST [the question asked] is disingenuous in the extreme. People who voted to get rid of the HST got what they asked for; now they and everyone else in BC has to live with the consequences. Thanks for nothing...
As a small business dealing with consulting, while I appreciate how beneficial the HST can be for large businesses especially in the area of Manufacturing, it has not had a net positive effect for our business. In actuality, from our particular perspective returning to the PST will increase our overall net revenue which we will be able to re-invest back into our company. Combined with that having the PST as a business expense will give us the double benefit of reducing our overall federal/provincial business taxes.
For our situation a return is good, for others the situation will be different.
Our biggest complaints about the HST revolved around the way it came about and worst of all the timing. In any economic cycle, the worst time to tinker with increasing taxes is when an economy is stuggling, you cannot take that much money out of the consumers pockets at a time when you need them to be spending. To my view the implementation of the HST has likely been a major drag on economic recovery in BC.
Can't wait till May 14th, 2013 to give her and her followers the BOOT out of office.
They go into history joined at the hip.