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