Average BC family pays $1,208 per year more in HST
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Submitted by SnowValleyNews.ca on Sat, 14/05/2011 - 6:21pm.
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 Joined: 23-12-2006 |
Fight HST Leader and former BC Premier Bill Vander Zalm says the BC Government’s “Independent Panel” report on the Harmonized Sales Tax seriously underestimates the high cost of the HST on average BC families. “The actual tax increase under the HST for an average family is closer to $1208, not $350 as they reported,” Vander Zalm explained. Vander Zalm says the government-appointed “Independent Panel” presented the HST in the best possible light in each of its calculations, severely diminishing the “real” impact of the tax on families by over 300%. Fight HST says there are a number of other flaws, including the Panel discounting the impact of the HST by estimating that 90% of HST rebates received by businesses will be passed on to consumers. “The report says that business will pass 90% of their HST rebates on to consumers in the form of lower prices. 90%! That is a ridiculous number given that we’ve seen prices go up in BC under the HST, not down,” said Vander Zalm. Vander Zalm says the report contains several flaws: The report incorrectly concludes that consumers in BC have a net additional tax burden of $1.33 billion when in fact it is $2.6 billion. After deducting the $400 million of income tax measures, the net HST cost to British Columbians is $2.2 billion - or $1,208 per average family – not $350 as reported. Vander Zalm says the Government Panel’s report is even more devastating to the BC Liberal government than previously thought, since its estimated meager benefits are based on a “best case scenario” with unrealistically optimistic assumptions about “cost savings” passed on to consumers. “We know now that the HST does not work. We can see it in the report and we can see it in our daily lives under this tax. Unemployment is up, prices are up, and the economy is down. Former Premier Gordon Campbell made a big mistake in taking on the HST to try to cover a deficit hole. The long term costs are extremely damaging to BC,” said Vander Zalm. “It’s time for the new Premier Christy Clark to fess up and admit that it was a bad idea. In light of this report and in light of the serious damage the tax is doing to our economy and business, how can Premier Clark and Finance Minister Falcon continue to take the same positions as their predecessors Gordon Campbell and Colin Hansen?” “We know the BC Liberals are very close with big business. We know the HST will provide a windfall profit to the big corporations that operate here. But the long term economic damage to BC is not worth it.” “We urge every British Columbian to vote “YES” to extinguish the HST and return to the PST and GST with the same exemptions as before. It will save jobs, businesses, and help get our economy back on track again,” Vander Zalm concluded. |
Joined: 23-03-2007
It doesn't really matter what you call the taxes, we will always pay them and they will almost always increase, just as everything else does, the cost of maintaining our social welfare system and civic maintenance etc. I'm personally fine with paying taxes, and I would even pay more, but what I despise is when tax money is wasted or spent inefficiently. We have it made here in Canada, I have no tolerance for people bitching about taxes, what the hell do you think pays for everything we have, our cheap medical, unemployment and welfare safety net, road building etc.? Paying $1000 a year is nothing compared to having a $300,000 medical bill all of a sudden. General taxation on everybody is the right idea, everybody contributes to a system that everybody benefits from. What we need to do though is to step it up so that those who earn more pay more taxes. I'm a relatively high income earner and I would have no problem with paying a higher tax rate. My worst nightmare is a scenario like what exists in the USA, where nobody wants to impose or pay taxes and they have a horrible social system where if you can't afford medical care, tough shit, and the infrastructure is crumbling away.
Joined: 03-06-2008
The thing is... the people making "the big deal" out of the HST, get HST rebates!
The B.C. government hands out 1.1 million HST rebate cheques to low-income residents every quarter! Eligible lower-income residents receive up to $230 annually for each family member through the B.C. HST Credit. A family of four would receive up to $920 a year, and up to $1,380 for a family of six.
So if its a user tax, the lavish spender will have to pay a litte more, and the litte guy will get a refund of 2.5% on their tax on their extra spending.
This extra tax money is for the young. Are we just going to hand over our province in debit to them.......
If you asked 100 people if they would like it, if they didnt have to pay taxes...I bet 98 of them would say yes...
If you told the same 100 people that it would me... poor roads, poor RCMP fund, no bylaw officers, no street lights, swimming pools, subsidised housing, womens centers, child programs, shooting galleries, walk in clinics.. blah blah blah... I bet theyd change there tune..
Joined: 23-12-2006
Regardless of whatever biased arguments I am presented with in this debate I know that I am paying more HST than I did under the GST/PST system. Regardless of the slightly increased GST/HST rebate I get.
Ski pass increased 7%
Restauraunt meals increased 7%
Gym Pass increased 7%
Bike and bike parts purchases increased 7%
Flights increased 7%
If they could have kept the same PST exemptions that they had in place before then the HST would have been a great thing. But they didn't they jacked up the tax on many items that affect me and they gave a break to businesses.
Im voting to abolish the HST and go back to the way it was before if they don't fix this imbalance
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Joined: 03-06-2008
Why shouldn't you pay 14% when buying mountain bike? Because it's green? What about downhill bikes using truck shuttles and skilifts? Should they pay the 14% but only cross country and townies pay 7%. If our economy is now a mixed economy, with tourism making up a bigger portion of B.C income every year, isn't it time B.C cashed in on the tourism that you've been promoting for our province. The PST/GST was designed decadeds ago for a decades old economy. Its time to modernize the tax system.
I find it completely unimaginable that Wildsight members would not support a consumer tax. Use more electricity, pay more tax. Use more natural gas pay more tax. Go to Walmart and consume, pay more tax.
Here's the other option, run a larger deficit.
Joined: 17-05-2011
Bikes used to be PST exempt - so actually 12% increase. Also, all labour costs are now increased by 12%.
Joined: 23-12-2006
The HST has lots of benefits. No doubt.
But the loss of all the PST exemptions on basic items and items that encourage green living and healthy lifestyles all so that business can pay less tax is a slap in the face.
Christy Crunch is talking about "fixing" the HST. Hopefully she re-instates exemptions that used to put "family first"
Snow Valley News - Fernie News, Blogs, Forums and Classifieds
Joined: 03-06-2008
[quote=dardia]Bikes used to be PST exempt - so actually 12% increase. Also, all labour costs are now increased by 12%.[/quote]
If bikes were PST exempt, that would be a 7% increase. Also note that safety equipment tax is now increased 7%.
Thing is though that, say for example, under the old tax system of no PST, you brought your bike in for repairs. The bike shop had to pay GST and PST on the tools used to work on your bike, but could only claim one tax with the government as tax free. They of coursed passed this GST and PST they paid onto you. You were paying their GST and PST but they wouldn't have to collect PST for the government. Oh and they were also charging the government 2% (I think to) to collect that tax you did pay for the government.
Now under the new HST system, that same bike shop, doesn't have to pay tax on those tools anymore. They get to claim the 12% on those tools. You would think that they would pass those savings onto you since you were probally paying there tax for them with the old system. The government is also giving the bike shop a cut, for collecting the taxes for them.
Sounds good on paper.........
Joined: 23-03-2007
And just as a reminder for those opposed to tax increases...this is the alternative:
http://ca.news.yahoo.com/user-fees-option-budget-review-clement-says-214...
Either way, you pay. Get used to it. It's far better that everybody pays a little more, or you'll be paying a $50 deductible every time you go the doctor or pharmacist for example.
Here is the text if the link does not work:
The man in charge of leading government budget cuts laid out the broad strokes of how it will happen Wednesday in front of an audience of senior civil servants.
Treasury Board President Tony Clement, the minister in charge of the public service, said the Conservatives will be taking a page from the private sector as they look for $4 billion in permanent annual savings in program spending, in an attempt to balance the federal budget.
And he asked his audience to consider "a range of options," including user fees, as they conducted program reviews.
"This is the first time in 15 years that government has conducted a review of this scope. In the business world, looking at streamlining operations is an annual exercise – business as usual," he said, according to remarks posted on the Treasury Board website.
"So we are looking to work smarter, better, and faster."
Clement says there are fundamental questions all 67 departments and agencies will have to ask in the attempt to cut five to 10 per cent from each budget.
"Should we still be doing this — and doing it in this way? Does this have to be delivered by this organization? Why does it cost as much as it does? Can we find savings? Is it achieving the expected results efficiently? Is this a government priority, and is it affordable during a period of fiscal restraint? Are we achieving value for money?" he said.
The government wants to balance the budget by 2014-15 and wants to be able to start counting the savings starting in the 2012-13 budget.
The spending review is to look at all operating expenses, including wages, salaries, and professional services contracts, plus grants and contributions, capital, and payments to Crown Corporations, Clement said.
"But I do want to make one thing very clear: this review will not touch major transfers to provinces, territories and individuals. Nor will it look at public debt charges," he added.
Perhaps controversially for a government that is decidedly against raising taxes, Clement said departments shouldn't rule out user fees.
"We are encouraging departments to develop a full range of options in areas such as administrative and program efficiencies, business consolidation and user fees. Some of this may require legislative or machinery changes," Clement said.
The government is also looking at sharing services between departments, he said.