More on the HST

Since my last post on the HST, more information has emerged as to how this new tax would be implemented. The details, however, did not change my stance against this tax one bit.

Against the oppositional voices, the government has outlined several points in defence of the HST. I will first list these points, and then offer my argument against them:

#1 HST rebates will be given to citizens of lower income, much like the GST rebates currently given. There are two serious flaws in the concept of a HST rebate: firstly, people must still pay the tax upfront. For people who are barely earning enough for their everyday needs, receiving a cheque in three months’ time does not assist them in acquiring their daily essentials today. Secondly, as a person who used to collect GST rebate cheques way back in the day, I know the amount does not reflect how much I have spent. For people who are living on a very tight budget, the fact that they know they will receive a set amount of rebate regardless of how much they have spent would decrease their desire to spend. This would harm businesses overall.

#2 Businesses will be saving administrative costs in the billions. I know very little about big businesses and how they operate, so let’s just assume that this claim is true. However, for a corner store owner who handles the bookkeeping and taxes by himself, how does harmonizing the GST and PST save him any administrative money? Increasing that number on the price tag would hurt his business, that’s for sure. What would small businesses gain through this re-structuring of taxes?

#3 B.C. would have the lowest HST rate in Canada. So? Right now, we have 5% GST, and 7% GST. Keep things the way it is, we have to pay a combined 12% for sales taxes. If that is the lowest in Canada (it actually is not – Alberta has no PST, and Saskatchewan has a 5% PST rate, for a combined rate of 5% and 10%, respectively), does the process of harmonization change anything? It doesn’t.

#4 There are exemptions to the HST in areas such as food, books, etc. But the exemptions cover fewer areas than the current PST exemptions. Not all food items we purchase from a supermarket would be PST exempt, so food cost will go up (unless you just buy broccoli and boil it everyday as your food, with no sauces, no spices, and no processed food items to add). You work late one night and need to dine out? Pay 14% HST. Can you imagine the hit restaurants, particularly those low-end, bargain restaurants, would take?

#5 Businesses currently paying a hidden 7% PST would transfer that tax back to the consumers when that hidden tax is removed and replaced by the surface 12% HST. The BC Government has said the money it has received from the federal government to implement the HST will NOT be given to BC residents, so what make anyone believe that big businesses would pass along their savings? Are we that naïve, Mr. Campbell?

The Liberal Government has claimed that, over the years, it has taken steps over the years to make business more competitive, and to reduce taxes. All I know is that, over the last few years, the federal government has lowered the GST from 7% to 6% and then to 5%. Love or hate the Conservatives, they did deliver their election promises. I have not seen the PST reduced at all. I have seen money from lower income families being taken to be given to big businesses and corporations, friends of Mr. Campbell and his friends.

Truth is, the HST is a discriminatory tax that targets people of lower income. At the provincial level, I have not really been supportive of either the Liberals or the NDP, but this latest move by the Liberals have turned me into a definite Liberal-basher. I would sincerely urge you to join the following Facebook group to voice your displeasure against the BC HST:

No BC HST Facebook Group

HST is a Money-grab against the Poor

I haven’t written about news happening at the local front for a while, but this following piece of news REALLY disturbs me:

Vancouver Sun: BC to Harmonize Sales Tax at 12% Next July

Finance Minister Colin Hansen (left) announced today (Thursday, July 23, 2009) that the B.C. Government will combine the federal GST and the provincial PST into one combined sales tax, the harmonized sales tax (HST) starting in July of 2010. Hansen cites that the existing two-sales-tax system is causing businesses a lot of extra accounting work that is bad for business. He estimates that the harmonization process would save businesses 1.9 billion dollars.

What Hansen did not say is the harmonization’s effects on the poor, which prompted me to write the following to all the local newspaper immediately upon hearing this news:

“The BC Government’s proposed plan to “harmonize” the GST and PST into the HST appears on the surface to be a move to promote business. In essence, it is a despicable scheme to take the money away from the poor to pour it into the pockets of the rich. Currently, the poorest of BC’s residents rarely have to pay a sales tax for the province – they do not buy electronics, cars, luxurious vacations, and the like. Groceries, school supplies are among the items that are PST-exempt. By harmonizing the federal and the provincial sale taxes, they would now have to pay an additional 7% when they buy their food, or a set of pencils for their children. Big corporations are ALREADY paying their accountants to handle both the GST and PST; grass-root citizens cannot afford to pay a NEW extra 7% for their life’s essentials, and that is the bottom-line that Mr. Campbell’s government is once again ignoring.”

If enough people are crying foul, I have a feeling the BC Liberals will propose a rebate system where the poor can get some money back for the extra taxes they have to pay on their everyday essentials. However, even if that rebate is a full-scale rebate that covers all of their expenses, it does not take into the account that grass-root citizens are living from pay-cheque to pay-cheque, and cannot really afford to pay that tax up front. Without a choice, people with the lowest income may have to buy less food, live in poorer conditions, and have fewer essential items such as stationary products for school-aged children.

Even with best intentions, it is not difficult to see that the BC Liberal government has its policies catered towards the rich at the expense of the poor. I do not classify myself as a political socialist (far from it, actually), but this repeated oppression of the poor is just despicable.

MJ and ET

These last 10 days, we have been bombarded with news and rumours surround Michael Jackson’s passing. While there is absolutely no doubt that Michael Jackson is a transcendent figure in the world of entertainment, I cannot but remember his later days and all the controversies and allegations. Is Michael Jackson a legend? Absolutely. Is he worth the wailing and crying that we are seeing daily in the news? Unless you are actually related to him biologically or in relationship, I think not.

Just a couple days before MJ’s passing, a far less prominent person by the name of Ed Thomas suffered a tragic death. The news, however, did not receive much media attention. Here's one though, from ABC news.

Ed Thomas was a long-time high school football coach at Aplington-Parkersburg, a small town in Iowa, USA. He has coached for over 40 years, and from his small high school program, he has produced four professional football players, no small feat for a program so small. On the day Mr. Thomas died, he was putting in extra time for his players, gathering them for an extra training session. A former student from his high school stormed the changing room where Mr. Thomas was, and shot him in front of his players.

Mr. Thomas is a big-name person in the state of Iowa not because of his coaching genius, but because of his character as a person. A couple years ago, a tornado basically destroyed this small town in Iowa. While many considered leaving the town, Mr. Thomas urged the people to stay, and used the re-building of the school’s football field as a rallying cry to help the town’s people to move on.

In many ways, I understand why Mr. Thomas is not getting the respect and tribute that Michael Jackson is getting – after all, Mr. Thomas was “just” a high school football coach that worked with these teenagers, and showed them how to live their lives the right way. But, isn’t that exactly the problem we have in this society, that we celebrate the stars, and don’t recognize those who are truly making the true difference, one life at a time?

Rest in peace, Mr. Thomas. You have my utmost respect.