Once again it looks like the Liberal government is deliberately trying to deceive British Columbians about the HST.
Under the Liberal plan, the HST, currently at 12 per cent, would be reduced by one per cent July 1, 2012 to 11 per cent.
The additional one per cent reduction to the HST will not come into effect until July 1, 2014, so the HST will not actually be reduced to 10 per cent until 2014, not immediately as it is very clearly stated in government adds.
As far as actual costs to consumers, it is estimated that under the current HST/PST system, British Columbians will pay an extra $2.8 billion per year, or an extra $1,208 per family, not $350 as the government has stated.-Charlie Wyse, NDP MLA for Cariboo North
Reviewing the government website, (HSTinBC.ca), to see which items are taxable under the current 12 per cent HST/5 per cent PST regime, (hereafter referred to as the HST regime), versus what is taxable under the alternative seven per cent/GST/five per cent PST system (hereafter referred to as the original GST/PST regime), the list of HST taxable items is staggering compared to those under the GST/PST regime.
Looking at taxation under about six different categories, the HST taxes a huge number of items not taxable under the GST.
The biggest HST tax hit comes in entertainment, where the following items are taxable:
-admission to sporting events
-movie tickets
-gym, athletic club, and golf club memberships
-admission to museums, art galleries, and live art shows
-music concerts
-camping sites
-ski-lift passes
Next is travel where all domestic air, rail, bus travel and taxi fares are HST taxable.
Vehicles:
-motor vehicle parking
-lease of alternative fuel vehicles
-automobile repairs, (I payed $100 HST on a $900 bill to replace my fuel pump and fuel filter.)
Under food servicers, restaurant meals and snack foods all HST taxable.
Under health and beauty aids the following items; vitamins, massage therapy, hair styling, esthetician services and over the counter medications, all HST taxable.
Under Services, the following are HST taxable:
-basic cable
-residential phones
-household appliance repairs for stoves, fridges, washers and dryers
-landscaping, lawn care, and snow removal
-computer software repairs
-funeral services
-accounting services
-dry cleaning
-catering, wedding or event planning services
-veterinary services
As you can see, this is a huge list of additionally taxed items under the HST. Now when you look at items that are not taxed under the current HST regime, it seems very small to me:
-vehicle purchases more than $55,000
-short-term automobile rentals
-hotel rooms
-alcoholic beverages
-residential energy
-disposable diapers
Then there are the items that will have the same tax for either regime when the HST is 10 percent. This lists covers the following items:
-buying a home that someone has lived in before
-prescription drugs
-child-care services
-residential rent
-car repairs
Gas and diesel for your vehicle
-furniture and appliances
-household goods and equipment
-books
-electronics
-child-sized clothing and footwear
-children’s car seats and booster s
Now what would be the consequences of scrapping the HST? The Liberals tell us that B.C. would have to pay Ottawa back for the $1.6 billion dollars promised for implementing the HST.
What they neglect to tell us is that the HST has already generated $850 million for the province, and the fact that B.C. only received $1 billion from the federal govt.
Ottawa has also collected another $300 million in corporate taxes they would not have received under the old PST/GST taxation system. If you add the numbers up, keeping the GST will cost more than killing it, an additional 2.8 billion per year to British Columbians. -Charlie Wyse, NDP MLA for Cariboo North
Whose to say if we keep the HST, the government won’t jack the tax back up if the economy does poorly?
One just has to look at many European countries, where the HST originally introduced at 12 per cent is now between 20 to 25 per cent and is a major contributing factor to economic chaos in many of those countries, i.e., France, Greece.
The Liberals also claim that 90 per cent of what you pay in HST is passed back to consumers in lower prices, and this begs the question how many B.C. consumers have seen lower prices lately!
Also the proposed two per cent increase in corporate taxes to make up for the HST decrease will ultimately be passed on to consumers in higher commodity prices. (Charlie Wyse, NDP MLA for Cariboo North)
Seniors and people on fixed incomes are some of the hardest hit under the HST, and a proposed one time rebate of $175 for seniors and each child under the age of 18 is insignificant if you are paying more in taxes!
Basically stated, a tax grab is still a tax grab no matter what way you look at it and if we keep the HST, consumers will continue to pay an additional $1,250 per family per year, plus shouldering the tax burden for corporations who continue to
layoff workers while rewarding shareholders and executives with higher salaries and bonuses.
Also who knows if the same government will be in power in 2014 to carry out their promises to reduce the HST?
The HST could easily be increased again in poor economic times as it was in Europe, with disastrous results.
Victor Hegan is a Quesnel resident and opposes the HST.
