Friday, July 24, 2009

Harmonized sales tax

The new harmonized sales tax proposed by the BC Liberals, to be put in place for July 1st 2010 is easily the best way to destroy our recovering economy. On paper, the harmonized tax looks as though it won't change the cost of any goods as you currently purchase them. This is untrue. The harmonized sales tax forces consumers to pay what was previously the goods and service tax on goods that was not previously taxed, thus increasing the price of things such as "non-essential" groceries, as determined by the government.
First and foremost, how do the BC Liberals intend on paying for the tax rebates promised by switching to the harmonized sales tax? The BC Liberal website claims that there will be yet another low income tax credit, just as there is with the carbon tax. It claims that there will be rebates on all new housing projects, as well as rebates municipalities, churches and other qualifying non-profit organizations. The BC Liberals state that the harmonized sales tax will remove over 2 billion dollars in costs from BC businesses. With the Canadian Government only giving the province 1.6 billion dollars to cover the transition to the new harmonized tax, where will the money be found to cover the costs of the rebates, as there is no new government income being created, if you ask the BC Liberals. So how does the government propose that the taxpayers pay for their own rebates? It seems that there is no answer given to that by the BC Liberals. Make no mistake, this inability to answer where the money to pay for the tax shift is problematic, and could undermine the economic recovery we currently have in place.
Why do we suddenly need to switch over to this new harmonized sales tax? Ever since Premier Campbell won his first term in government, the BC Liberals have been trumpeting how British Columbia is the best place on earth. There's no disputing that from me, but if British Columbia is such an attractive place to live and set up businesses, why is the government so interested in suddenly fiddling with the tax system that made us the best place on earth, especially at such a critical moment when the economy is beginning to experience positive growth again. What do the BC Liberals hope to gain by changing how we pay taxes?
But there doesn't need to be an answer given, this is just another choice made by the BC Liberals. A choice to protect and help their friends in big business instead of helping the middle class of British Columbia. No help for BC families, just BC CEOs.
Say no to the harmonized sales tax.

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