Monday, August 10, 2009

An Open Letter Against the Proposed HST

The following is a letter I have e-mailed to BC Premier Gordon Campbell, BC Finance Minister Colin Hansen, my riding's MLA Kash Heed, and Opposition Leader Carole James. I'd encourage those who are reading this to do the same in opposition to the proposed HST.

The letter is very similar to my earlier post, but with a slight twist. My brother has written to the government, and has gotten an "official response" defending the HST. I have modified some of my points to demonstrate the fallacies of the Liberals' argument.

Please note that I have said at the end that I have been "a supporter of the BC Liberals." This statement is a tactic I encourage you to use, whether you are a supporter of the Liberals or not. If there is something that these politicians are still slightly afraid of, it is that vote in your hands... Use it to threaten them - it is our only weapon.

To: Hon. Gordon Campbell, Hon. Colin Hansen, Hon. Kash Heed
cc: Ms. Carole James, Leader of the Official Opposition

Date: August 10, 2009

Dear Premier Campbell, Honourable Mr. Hansen, Honourable Mr. Heed, and Ms. James,

I am writing to you in protest of the proposed 12% harmonized sales tax (HST) in British Columbia. I am extremely disturbed over the trend the B.C. Liberal government has shown in taking hard-earned money from middle- and low-income families in the name of “economic stimulation” and “savings for businesses.”

In the multiple rounds of rhetoric that various representatives from the Liberal government have spoken, the proposed HST is vigorously defended, and many reasons were cited to support their views. However, these reasons are either irrelevant, invalid, or not substantial enough to warrant the proposed change. Based on what I have heard and read from people of your party and in the press, I would like to point out the following flaws of your argument:

1) HST rebates will be given to citizens of lower income four times a year, in the same way as the GST rebates are currently given.
There is a serious flaw in the concept of a HST rebate: people must still pay the tax upfront. For people who are barely earning enough for their everyday needs, receiving a cheque every three months does not allow them to purchase their daily necessities. This would drastically reduce the quality of life for senior citizens, citizens with a physical and mental disabilities, and children who are in under-privileged families.

2) Businesses will be saving administrative costs in the billions.
The Liberal government continues to advertise that the harmonization process will save businesses 2 billion dollars in administrative and accounting costs. What it does not tell the citizens of B.C. is that these savings would only apply to big corporations who are paying multiple staff to handle such duties. For local and small businesses, where the accounting work is done mostly by the business owners, and maybe once a year by an accountant, they cannot share any benefit what-so-ever. On the contrary, because accounting services would be subject to an increase in tax charges, small businesses are even less likely to seek the use of accountants. This would translate into more work for small business owners, and accountants who earn their living by helping these small businesses.

3) B.C. would have the lowest HST rate in Canada.
This claim is a play of words, and is actually invalid when we look at the issue of sales taxes rather than HST. Alberta currently has no provincial sales taxes, and Saskatchewan has a 5% PST rate. When you combine the different types of sale taxes (GST, PST, HST, etc.), B.C.’s 12% sales tax is still 7% higher than that of Alberta, and 2% higher than Saskatchewan. By harmonizing the B.C. PST and the GST does not change that fact.

4) There are exemptions to the HST in certain goods and services.
While there are exemptions to the HST in some of the essential products, the range to which the new exemptions would cover is still less than what the former PST exemption covers. When senior citizens do not dare eating lunch at family restaurant at the corner of a block, or when a small child can no longer afford to have his/her haircut done at a local barber shop, the quality of life for lower-income families, as well as the welfare of small family businesses would suffer tremendously.

5) Businesses currently paying a hidden 7% PST would transfer that tax back to the consumers.
This is only a wishful thinking on the part of the Liberal government who is desperate to find a reason to justify the proposed change. When the BC Government itself has said that the money it has received from the federal government to implement the HST will NOT be given directly to BC residents, what makes anyone believe that big businesses would pass along their savings directly to the consumers? Big businesses are not legally obliged to do so, and because of that, many of them won’t.

6) The full cost of administration would be taken care of by the federal government, and with the adoption of the HST, BC would receive $1.6 billion from Ottawa to use as it sees fit.
Mr. Campbell and Mr. Hansen have made it very clear that this money received from Ottawa will not be given to the citizens of BC. This is irresponsible and despicable. It is the BC Liberals who want to implement the HST; BC’s citizens did not ask for this, nor did we vote for it. If the government does not try to harmonize the two taxes, there would be no administrative costs incurred in the first place. Even if the harmonization process is a necessity and is beneficial to the mass majority of BC’s residents (it is not), the money from the federal government should be given fully to the citizens of BC, especially those whose quality of life would be most affected by this process.

I have long been voting for the B.C. Liberals in the provincial election because I believe your party is more capable of promoting a healthy economic atmosphere. However, I have never wanted to vote for a government that takes advantage of the most vulnerable citizens of the province to help make big businesses more viable. If the HST proposal is not retracted or if substantial modifications are not made to address the issues of lower-income families and citizens, I would not vote for the Liberal party again, and would ensure that all my family and friends do the same. I would also participate in any recall movements to recall my local MLA, who is unwilling to listen to the voices of his constituency.

I look forward to hearing your response to these points that I have raised, and to hear what solution you have in place to address my concerns. Thank you very much for your attention.

Yours truly,
XXX

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