If it was the tax that was wrong I would vote to kill it, if it was the way it was brought in that was wrong, I'd vote to "kill" them!
Is it the H.S.T. that's wrong or the way it was brought in that was wrong?
- Thread starter JLM
- Start date
..something I came across recently re: HST..
--
GST-type sales taxes are the most efficient way to tax consumption because such taxes effectively strike only once, when something is purchased for final use. The PST, on the other hand, embeds tax at arbitrary rates, depending on how often inputs change hands -- about 40 per cent of PST revenue comes from taxing business inputs.
Understandably, the proposal has drawn the ire of those whose products are exempted from the PST but would be subject to HST. But the PST is applied on inputs at multiple stages of production, leading to a cascading -- and arbitrary -- tax bite hidden in higher consumer prices, including on currently exempted products, such as new houses or restaurant meals. On many products, such as clothing, consumer appliances, automobiles and computers, the effective tax rate is higher than the seven-per-cent PST paid at the cash register. The implementation of the GST itself, and harmonization in the eastern provinces, demonstrated that those prices will fall after the change.
A C.D. Howe Institute study examined the revenue impacts of creating an HST that exactly copied the GST and showed that such a plan would increase provincial revenues. However, there are major differences between what the B.C. government has proposed and the GST. Looking at the details of the B.C. plan shows that harmonization may be very close to revenue-neutral.
First, like the PST, the HST would not apply to gasoline or diesel whereas the GST does. By our estimates, the province left approximately $300 to $400 million per year in the pockets of drivers by maintaining this exemption.
Second, the province is providing a more generous exemption on new housing than the federal government. The GST is partly rebated on the value of new homes below $350,000. Homes above that not only have to pay GST on the value above $350,000 but also have to pay back the rebate on the value of the house below this amount. When Ontario announced it was harmonizing, it initially proposed a similarly awkward new housing rebate.
This created a firestorm of opposition from developers, and Ontario went back to the drawing board.
The new Ontario proposal responded to the concerns raised and now includes the same rebate as B.C. is proposing. Homes below $400,000 would receive a rebate compensating for the HST, and -- unlike the GST -- the rebate would not be recaptured. Based on estimates for Ontario, we expect this more generous rebate to reduce B.C. HST revenues by about $400 to $500 million per year.
Whether these changes make harmonization exactly revenue neutral depends on how fast, and in what sectors, the economy grows.
http://www.cdhowe.org/pdf/opeds/DachisLaurin_VS_Aug11.pdf
--
GST-type sales taxes are the most efficient way to tax consumption because such taxes effectively strike only once, when something is purchased for final use. The PST, on the other hand, embeds tax at arbitrary rates, depending on how often inputs change hands -- about 40 per cent of PST revenue comes from taxing business inputs.
Understandably, the proposal has drawn the ire of those whose products are exempted from the PST but would be subject to HST. But the PST is applied on inputs at multiple stages of production, leading to a cascading -- and arbitrary -- tax bite hidden in higher consumer prices, including on currently exempted products, such as new houses or restaurant meals. On many products, such as clothing, consumer appliances, automobiles and computers, the effective tax rate is higher than the seven-per-cent PST paid at the cash register. The implementation of the GST itself, and harmonization in the eastern provinces, demonstrated that those prices will fall after the change.
A C.D. Howe Institute study examined the revenue impacts of creating an HST that exactly copied the GST and showed that such a plan would increase provincial revenues. However, there are major differences between what the B.C. government has proposed and the GST. Looking at the details of the B.C. plan shows that harmonization may be very close to revenue-neutral.
First, like the PST, the HST would not apply to gasoline or diesel whereas the GST does. By our estimates, the province left approximately $300 to $400 million per year in the pockets of drivers by maintaining this exemption.
Second, the province is providing a more generous exemption on new housing than the federal government. The GST is partly rebated on the value of new homes below $350,000. Homes above that not only have to pay GST on the value above $350,000 but also have to pay back the rebate on the value of the house below this amount. When Ontario announced it was harmonizing, it initially proposed a similarly awkward new housing rebate.
This created a firestorm of opposition from developers, and Ontario went back to the drawing board.
The new Ontario proposal responded to the concerns raised and now includes the same rebate as B.C. is proposing. Homes below $400,000 would receive a rebate compensating for the HST, and -- unlike the GST -- the rebate would not be recaptured. Based on estimates for Ontario, we expect this more generous rebate to reduce B.C. HST revenues by about $400 to $500 million per year.
Whether these changes make harmonization exactly revenue neutral depends on how fast, and in what sectors, the economy grows.
http://www.cdhowe.org/pdf/opeds/DachisLaurin_VS_Aug11.pdf
Here is a handy hint. If govt passes a bill you don't like you have 30 days to dispute it.
I wish people were more active in politics other than name calling and stupid partisanship then maybe they'd know and use this fact to keep the assholes in line.
If the HST is defeated..........and we should know in a couple of hours here in BC, then I think it might have been a bit of both, JLM. The anger that arose after Campbell blatantly lied to us about implementing the tax all the while working behind the scenes to do just that, helped fuel the fire that ignited the anti-HST campaign. The added costs to us consumers once the tax was fact simply fed the flames, IMHO.
Initially it was a deceitful way, Gordon Campbell shoved it down the throats of the British Columbia people. he knew that during that election if he was honest and admitted what he was planning on doing........his government would have lost.
initially they told us that it was revenue neutral.but it was a shift from big business to the average person.
then the people realized, the extent of new taxs on goods and services.
the instigator, of all this turmoil in British Columbia Gordon Campbell has received his just rewards from the federal conservative government..........and is sitting back and laughing at us all right now.
initially they told us that it was revenue neutral.but it was a shift from big business to the average person.
then the people realized, the extent of new taxs on goods and services.
the instigator, of all this turmoil in British Columbia Gordon Campbell has received his just rewards from the federal conservative government..........and is sitting back and laughing at us all right now.
It is official - the HST is dead. Before we either celebrate or mourn its defeat, apparently it will take over two years to get rid of it and we the taxpayers will be left with a huge bill owing the Feds - thank you Gordon Campbell. angry9:
Have another sip of your martini Gordo.you don't have to worry about another impaired with your limousine driver.
You certainly, screwed the people of British Columbia over
I see no link, to prove the HST has been defeated yet at 10:30 AM
You certainly, screwed the people of British Columbia over
I see no link, to prove the HST has been defeated yet at 10:30 AM
Whether it was right or wrong, alley, at least we had a chance to have our say. Time will tell if it was the wrong decision.
Sorry, grumpy.............I am listening to CTV news and they announced it. I will try to find a link - my bad.
Well darn it, I may have written too soon..........can't find a link anywhere.........now I will put my hearing aids in and see if I misheard CTV - sorry if I got it all wrong.
Oh, oh...............I did mishear the news - no announcement yet - BIG apology for the mistake. Will now slink away with a very red face. :glasses1:
One word in your post says it all....................................................................."Assholes" :lol:
I think you might be right, though, apparently the tallying was finished yesterday and if it was good news for Christie I think we'd have heard by now. If it is in fact defeated, I think it's going to bite us in the ass.