On July 1, life in B.C. became a little less divine. 12 per cent less, to be exact.
It is said that there are two inevitabilities in life: death and taxes. But the implementation of the Harmonized Sales Tax (HST) is beyond common sense.
The HST affects everyone, from students to retirees, so the anger over HST is not limited to any age group or tax bracket. HST is an equal opportunity pain in the ass.
Despite opposition and former Premier Bill Vander Zalm’s campaign to halt the proceedings, the HST went through unimpeded. And do not expect it to go away any time soon.
Taxes were first introduced into Canada in 1917 as a temporary measure to finance Canada’s involvement in World War I. Funny, I could have sworn temporary meant “for the short term” and not “well into the next millennium.”
Short of moving to Alberta or Saskatchewan, where taxes are the lowest in Canada, or filling out petition after petition to thwart the inevitable passing of the HST, there is little recourse but to ride the HST wave out. Wishful thinking won’t make the HST any less a reality.
All cynicism aside, there is one thing that will likely change in time for the next election: the political climate in this province. Whether they know it or not, this is last call for the B.C. Liberals. Apathy has made way for HST-fuelled anger. Heads will roll.
The B.C. Liberals have seriously misjudged their infallibility. The HST will not only assure the Liberals of baiting their opposition but will foster a new generation of angry voters. And the pool from which their anger will be drawn is immense.
The HST is being promoted as a salve to sectors that had been previously eviscerated by both the current and former governments.
According to hst.blog.gov.bc.ca, a B.C. government website, every penny collected from the HST will fund B.C.’s sagging health care system. Well, that is quaint. But would we really need the tax if the Liberals hadn’t eviscerated health care into near extinction?
According to the website, the HST will create 113,000 jobs.
Apparently, the HST will make it easier for employers to hire more people and pay better wages. That is great news if you’re a manufacturer or employed by the construction and forestry industries. Ditto oil, mining and gas. But for the average Provincial minion the HST is nothing but a stone cold shaft.
Again, the HST is being promoted as a salve to industries that had been previously eviscerated by both the current and former Governments.
The Goods and Services Tax (GST), introduced in 1991, contributed to Prime Minister Brian Mulroney’s political demise. Jean Chretien, a vocal opponent of the GST back in the day, ran for election on the promise of repealing the GST but later reneged. And thus a long and glorious history of Liberals reneging on promises was born. Hallelujah!
It took time, but Canadians soon got used to the GST and it became just a part of life. With such a history of taxation, odds are that the HST will remain a unique part of B.C.’s culture for a long time to come.
Suddenly, the Prairies are starting to look real inviting.
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You do not cite any compelling reason to support your claim that the HST is here to stay, despite widely published articles that outline their plan to repeal the tax. It is not convincing to simply cite that the GST was not repealed, as evidence that the HST will not be repealed. This this ought not be how we write an opinion piece, you state your opinion and do not address the evidence to the contrary. I don't have a firm grasp on the future, but if your article turns out to be accurate, it will only be through coincidence and not reasoned conclusion.
You are exaggerating the impact of the HST by stating that life got 12% worse. Whatever your views on the HST, it's important that everybody knows how it works. For many goods, the tax added to the sales price did not change; instead of seeing a 5% GST and 7% PST added to the sales price, consumers now see a 12% HST. That means, there is no change in the percentage of the sales price added as taxes for many items. For other items, such as restaurant meals and hair cuts, consumers now pay 12% HST instead of 5% GST. This amounts to an increase in prices that consumers pay for such items of 6.67%. So just based on these features of the HST, life could have gotten worse by a lot less than 6.67%.
In addition, many firms will see a decrease in their costs of production, because they don't have to pay PST on their machinery and equipment anymore and because the HST does not tax such items. Among the impacts of decreasing such taxes for producers are lower sales prices, or at least sales prices that will not rise as fast as they have in the past, and a positive effect on employment in BC.
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