Fraser Institute says H.S.T. will benefit low and middle income earners.

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Avro

Time Out
Feb 12, 2007
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JLM said:
I don't disbelieve you, but a link would convince me. It's time we had some facts on this thing, we've heard opinions for months.
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Effect of the HST by Family Income
When the provincial government introduced its HST legislation, it also increased the basic personal income tax exemption to $11,000, which reduces the amount of tax individuals pay, and introduced an HST credit for low and modest income families.
As a result, even though low and mid-income families will pay slightly more in sales taxes, the increases are more than offset by income tax reductions and the HST credit, leaving most low and middle-income families in BC with a smaller total tax bill in 2011 under the HST than under the PST.
Overall, families with incomes between $20,000 and $40,000 in 2011 will see an average tax reduction of $411; families with incomes between $40,000 and $60,000 will see their total tax bill decrease by an average of $159; while families with income between $60,000 and $80,000 will see an average tax reduction of $34.
Families in upper income groups will see a slight increase in their total tax bill; an average increase of $65 for families with incomes between $80,000 and $100,000; an average increase of $117 for families with income between $100,000 and $120,000; and an average increase of $167 for families with income between $120,000 and $140,000. However, these increases are negligible given the total taxes paid by families in these income groups. For example, the $167 average increase in the total tax bill for families with income between $120,000 and $140,000 represents an increase of just 0.3 per cent.

Source....guess where it came from?:lol:
 
Kreskin

Kreskin

Doctor of Thinkology
Feb 23, 2006
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The Fraser Institute and the rest of the economic think-tanks cannot measure the alternative outcome. The cause-effect relationship stuff is fluff. Numbers can be generated to say whatever you want them to. The only way to accurately measure this will be to look at your pocket book, before and after.
 
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AnnaG

Hall of Fame Member
Jul 5, 2009
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Avro said:
Don't believe the anti-HST rhetoric

On July 1, B.C. and Ontario will merge their provincial sales tax (PST) with the federal Goods and Services Tax (GST) creating a single harmonized sales tax (HST) -- 12% in B.C. and 13% in Ontario. Unfortunately, the prospect of harmonization has been met with public discontent due to misinformation being spread by those who oppose the reform and want to derail it. Canadians mustn't believe the anti-HST hype. The economic case for the HST is ironclad.
To understand why the move to an HST is beneficial, it is important to highlight the problem with the PST: It applies to business inputs in addition to many of the goods and services that consumers buy. When businesses are charged PST on production supplies and capital inputs such as machinery, production costs increase and these increased costs are largely passed on to consumers in the form of higher prices. In many cases, a product can be taxed multiple times before it is taxed one last time when purchased by the final consumer.
Even goods and services that are currently exempt from the PST in both provinces contain embedded PST, since service providers pay PST on many inputs they purchase including machinery, computers, office equipment and supplies.
The HST, on the other hand, is a "value added tax" like the federal GST: Only the value added by the business selling the good or service is taxed. In other words, all business inputs are exempt from the HST. Under the HST, businesses will receive refunds for the sales tax they pay on inputs.
Past experience with harmonization in Canada shows that competitive pressures will cause businesses to largely pass these savings on to consumers through lower prices.​
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*snorts* That I would have to see to believe. I don't give a damn what happens, profit is profitand businesses are in business for profit. If they can profit from fewer taxes, they might hire a few more people but product prices going down? Fat chance.
In 1997, Newfoundland, New Brunswick and Nova Scotia harmonized their PST with the federal GST. University of Toronto professor Michael Smart examined the effects and found that overall consumer prices in the harmonizing provinces actually fell after the 1997 reforms.
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I see a distinct lack of numbers here. I also wonder if some other reason might be why prices dipped if they actually did dip.
Harmonization will not only reduce prices, but also the costs of business investment. Since the PST applies to business inputs, including much of the machinery and technology firms purchase, it discourages business investment. By eliminating the PST on inputs, the HST will spark more business investment and development.
Here again past experience with sales tax harmonization in Canada is telling. After the three Atlantic provinces harmonized their PST with the federal GST in 1997, professor Smart found that investment in machinery and equipment rose by more than 12% in these provinces compared to the non-harmonized provinces.
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I fail to see how combinging PST and GST and still charging them for goods and services will be any better for anyone who buys goods and services after businesses see a little profit in their pockets.
With more investment and business development, British Columbians and Ontarians stand to gain higher wages and more job opportunities. For instance, University of Calgary professor Jack Mintz estimates that harmonization will account for a net increase of 113,000 and 591,000 jobs in B.C. and Ontario, respectively, over 10 years.
Finally, Canada's competitiveness will be improved with B.C. and Ontario's move to an HST, since businesses that export goods will see their prices become more competitive relative to businesses operating in other provinces and countries without sales taxes on inputs. Improving Ontario's competitiveness is especially important given the blow to the manufacturing sector from the recent recession.
To recoup the lost revenue from refunding the tax paid on business inputs, the HST will apply to a wider array of goods and services than the PST.
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I am damned sure seniors on OAP and CPP, single mums working 3 jobs, etc. will be thrilled about taxes being added on to this extra stuff.
Broadening the tax base this way ensures that more goods and services will be treated fairly, meaning the HST will produce a more uniform tax burden on all forms of consumption of goods and services.
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Really? Why? Is the GST going down on all these extra taxable items?
Opponents of harmonization claim that the elimination of sales taxes on business inputs and the expansion of the sales tax base would result in a shift of the tax burden from business to individuals. However, such a view ignores that the ultimate burden of all taxes falls on people in the form of higher prices, lower wages, or reduced rates of return.
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Uhuh. These HST proponents are sure leaning an awful lot on businesses' willingness to drop prices. Did they ask businesses if they'd drop prices or just pocket the extra as profit?
Moreover, both B.C. and Ontario are implementing several initiatives concurrently with the HST to offset the total additional amount of sales tax paid. This makes harmonization revenue neutral for government.
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Uhuh. So far, Campbull's been fulla bull about the costs of things.
British Columbians and Ontarians would do well to ignore the anti-HST rhetoric.
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I do ignore the rhetoric. And that's exactly what I see here; propaganda. This article could just as well have been written by Colin Hansen as he pulls the wool over people's heads.
The HST is a significantly more efficient sales tax system that will improve the investment climates in both provinces and ultimately benefit Canadians through more opportunities, higher rates of economic growth and increased prosperity. The three remaining non-harmonized provinces, Saskatchewan, Manitoba and Prince Edward Island, should follow suit.

National Post
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No video of cheerleaders to accompany this fine display of bullpuckeymanship?
Can we hear from businesses POV now? Or independent economists?
 
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Avro

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Feb 12, 2007
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Kreskin said:
The Fraser Institute and the rest of the economic think-tanks cannot measure the alternative outcome. The cause-effect relationship stuff is fluff. Numbers can be generated to say whatever you want them to. The only way to accurately measure this will be to look at your pocket book, before and after.
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Tax freedom day also remains the same.
 
TenPenny

TenPenny

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Johnnny said:
will they charge HST on foods that arent taxed right now, is my big question?
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I doubt it. Typically, groceries are not taxed, but prepared foods are (ie, cooked foods, restaurant meals, etc). Here in NB a lot of pizza joints started selling uncooked pizzas for you to take home, that way, they aren't taxed. Candy and snack foods, like chips, are taxed, because they're not 'groceries'.
 
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Avro

Time Out
Feb 12, 2007
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Kreskin said:
Tax freedom day for who? I have no doubt tax freedom day comes down a lot for friends of Campbell. They alone skew the reality.
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Do you know what tax freedom day is?

Oh yeah, another shot at the rich, the ones who create jobs.:roll:
 
JLM

JLM

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Nov 27, 2008
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Kreskin said:
The Fraser Institute and the rest of the economic think-tanks cannot measure the alternative outcome. The cause-effect relationship stuff is fluff. Numbers can be generated to say whatever you want them to. The only way to accurately measure this will be to look at your pocket book, before and after.
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Oooooooooooooooh, you mean statistics aren't reliable? The "Great I am" isn't going to be happy. :lol::lol::lol:
 
JLM

JLM

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" Candy and snack foods, like chips, are taxed, "- And so they should be, if I had my way I'd double the tax on all junk food.

Avro said:
Do you know what tax freedom day is?

QUOTE]

Yeah, about December 23...................:lol::lol::lol:
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Bar Sinister

Bar Sinister

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Jan 17, 2010
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Considering that the Fraser Institute is little more than an apologist for the destructive policies of Friedmanism I see little value in believing in anything it promotes. The history of the organization is one of making extreme right wing recommendations that tend to benefit only the wealthiest 10% of the population. I find any policy it supports highly suspicious.
 
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AnnaG

Hall of Fame Member
Jul 5, 2009
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Bar Sinister said:
Considering that the Fraser Institute is little more than an apologist for the destructive policies of Friedmanism I see little value in believing in anything it promotes. The history of the organization is one of making extreme right wing recommendations that tend to benefit only the wealthiest 10% of the population. I find any policy it supports highly suspicious.
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Especially when it sounds like a politician trying to do a snowjob like the one Avro posted and I replied to.

Kreskin said:
I can see the correlation already.
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You can? Please explain. lol
 
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