Combined Tax-HST

[jjaycee98]

What has anyone heard to be the good and bad points?

Is it all good for Business and all bad for Consumers? Considering we all have to work for our living (most of us don't want a Socialist State) is there a benefit in employment possibilities?

Is it good for the Provincial Tax Payers and Neutral for the Federal Tax Payers (as in we have to pay Tax somewhere to support Social programs) or is the Federal Government going to get a cut for collecting and administrating the PST amounts?

 

[TenPenny]

It's a simpler system.

But it will result in extra tax on things that do not presently have the Provincial tax on it, or items with only the Provincial tax presently.

For example, if you buy a used car in a private sale, presently, you pay provincial tax when you register it; under the HST, you'd pay the HST when you register it (which is presently the case if you buy it from a used car dealer anyway).

Or take, for example, power bills; in NB, power bills were not subject to the PST before the HST was introduced; now they are.

So it can lead to some increases in some items, but it is a simpler system to administer.

 

[JLM]

I'm interested in seeing how they are going to make it work in two areas- restaurant meals and real estate sales.

 

[TenPenny]

In NB, under the HST, if you buy a newly built house, you pay the HST, but you can apply for a tax credit for the GST portion (if I recall correctly).

Existing housing does not have the HST on it (however, the real estate commissions / legal fees do have the HST on it).

Restaurant meals carry the full HST.

 

[JLM]

In NB, under the HST, if you buy a newly built house, you pay the HST, but you can apply for a tax credit for the GST portion (if I recall correctly).

Existing housing does not have the HST on it (however, the real estate commissions / legal fees do have the HST on it).

Restaurant meals carry the full HST.

That's what I thought re restaurant meals. It WON'T fly. Restaurant meals have gotten so ridiculously priced in the past two or three years, this will be the straw that will break the camel's back - anyone that does still patronize them will just take it out of waitress's tips.

 

[AnnaG]

Was listening to CBC and they had an interview with a Keith whatsisname from the gov't who refrained from voting on HST because he thinks there are better alternatives that won't piss off the public. And he even came up with an alternate plan.
I'm going to try to find it. Maybe Keith Martin?

Found something:

http://www.cbc.ca/politics/story/2009/12/02/bc-hst-vote-liberal-mp.html

http://blog.gokeith.ca/2009/09/how-bc-can-reduce-pain-from-hst/

I really get annoyed when government members start pushing a tax because it usually means citizens lose even more than normal.

 

[lone wolf]

One of the bad things will be First Nations people aren't exempt off the reserve. They choked traffic in the Soo today in protest

 

[AnnaG]

One of the bad things will be First Nations people aren't exempt off the reserve. They choked traffic in the Soo today in protest

We aren't particularly happy with the feds these days. New status cards that were promised us 5 freakin years ago are in limbo. This means that unless the US or whoever else requires native ID have a heart and understand the feds are jackasses, we're stuck. The feds promised these cards 5 years ago, and about 42,000 applications for them have been processed in those 5 years. 42,000 out of 800,000 applications. No cards. Just 42,000 applications for the cards. Ottawa: city of asses.

 

[SirJosephPorter]

It's a simpler system.

But it will result in extra tax on things that do not presently have the Provincial tax on it, or items with only the Provincial tax presently.

My accountant has already warned me that his fee is going up. Until now he only used to charge me GST, now he will have to charge both GST and PST.

 

[AnnaG]

My accountant has already warned me that his fee is going up. Until now he only used to charge me GST, now he will have to charge both GST and PST.

Anecdote. Worthless and meaningless.

 

[TenPenny]

Funerals will go up as well, by the way.

 

[JLM]

My accountant has already warned me that his fee is going up. Until now he only used to charge me GST, now he will have to charge both GST and PST.

Yep, it's not good that's for sure.

 

[big]

So it can lead to some increases in some items, but it is a simpler system to administer.

When it comes to tax, "simpler to administer" means "a worst system". The best tax system should be geared towards capturing economic rents which is the most complicated thing to achieve.

Economic rent - Wikipedia, the free encyclopedia

 

[Ron in Regina]

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[taxslave]

The provinces can exempt their portion of the HST on what ever they like. Overall it is a good idea but some items will probably end up with more tax than they now have. Or at least the visible tax. Ron has it right though since there is only one level of taxpayer there should be only one level of government screwing us.

 

[VanIsle]

The provinces can exempt their portion of the HST on what ever they like. Overall it is a good idea but some items will probably end up with more tax than they now have. Or at least the visible tax. Ron has it right though since there is only one level of taxpayer there should be only one level of government screwing us.

I thought Ron meant one big screw instead of two smaller ones! Same old same old in other words. I was a lot happier with Harper when he was supposedly going to put a stop to this. Wonder who got to him!!!

 

[Francis2004]

Here is a list of the goods being taxed by BC...

HARMONIZED TAXABLES

The following goods and services are currently exempt from PST, but will be subject to the full 12-per-cent harmonized sales tax when it is implemented. With the new HST, businesses will be able to recover the PST portion of the tax they currently pay, rather than passing it on to consumers as part of the price of these items. Theoretically, that should mean that prices for these goods will come down by seven per cent as they become subject to the full tax.

GOODS

- Residential fuels (electricity, natural gas) and heating.

- Basic cable TV and residential phones.

- All food products (only basic groceries will remain exempt under new tax).

- Non-prescription medication.

- Vitamins and dietary supplements.

- Bicycles.

- School supplies (books will continue to be exempt).

- Magazines and newspapers.

- Work-related safety equipment.

- Safety helmets, life jackets, first-aid kits.

- Smoke detectors and fire extinguishers.

- Energy conservation equipment (e.g., insulation, solar power equipment).

SERVICES

- Personal services such as hair care.

- Dry cleaning.

- Repair services for household appliances.

- Household maintenance such as renovations and painting.

- Real estate fees.

- Membership fees for health clubs.

- Movie and theatre tickets.

- Funeral services.

- Professional services such as accounting and home care.

- Airline fares within Canada.

Source: B.C. Ministry of Finance

The Progressive Economics Forum » BC and the HST [updated]

 

[JLM]

I thought Ron meant one big screw instead of two smaller ones! Same old same old in other words. I was a lot happier with Harper when he was supposedly going to put a stop to this. Wonder who got to him!!!

\
I'm not sure if anybody "got to him"- he's a politician- they lie, remember? Maybe since Ignatieff has proven he's got no teeth, Harper feels he holds more sway in the playground.

 

[damngrumpy]

This is a giant tax increase for individuals and business gets all the benefit as they get it all back, you as an individual do not. Once again the governments are putting the
tax burden on us while business get the gravy, and I can't wait to vote against my
BC provincial government. These clowns spent all our money on the Olympics and we get to pay the cost now they bail themselves out with the HST, at our expense.
We will pay additional taxes plus we will face other tax hikes to pay for the games
all so a handful of special interests can benefit.

 

[Cliffy]

This is a giant tax increase for individuals and business gets all the benefit as they get it all back, you as an individual do not. Once again the governments are putting the
tax burden on us while business get the gravy, and I can't wait to vote against my
BC provincial government. These clowns spent all our money on the Olympics and we get to pay the cost now they bail themselves out with the HST, at our expense.
We will pay additional taxes plus we will face other tax hikes to pay for the games
all so a handful of special interests can benefit.

Hi Grumpy.
How are things on the other side of the Monashees?
Too bad most people in the lower mainland will not wake up until the hangover from the Olympics. Most people have bought into the hype and their brains so compartmentalized that they don't see the connection between the Olympics and the tax grab. Some people are so dumb that I am sometimes ashamed to be a human.