Top 10 lies about HST in BC: Things you thought you know but aren't so!

There is a lot of debate about whether British Columbia should adopt HST or not. To be honest, when I read the first report about HST (put out by the (neo)Liberal govt.) I didn't think it was a bad thing. However, after a while I was able to read in between the lines and basically expose what HST really is.

Don't get me wrong, HST is not a bad idea, but it will not work in British Columbia. HST already exists in Quebec but since Quebec already has such a strong social welfare system (the most socialist of all the provinces) this added tax does not affect Quebecers in the same way it would British Columbians. BC is the most neo-liberal of all the provinces and HST will end up hurting consumers (aka citizens) rather than producers. Plus, the cost of living in BC is way higher than most other places in Canada, so adding an additional tax on all goods will negatively effect the poorer populations.

Why would this tax be bad when I (an admitted socialist) speak in favor of many other taxes?

Because...HST is a regressive tax. It is tacked on to goods and services and EVERYONE has to pay the same price, although if you know anything about capitalist systems, you know that we all don't have the same money in the bank.
This is the opposite of lets say and income tax, which is progressive. The poorer people pay less and the rich pay more.

So, considering BC's government is uber neo-liberal (meaning more like the US than any other province) and has a higher cost of living, implementing HST could be detrimental to the overall population.


Fight HST has been putting out many informational materials about the detriments of HST so for the benefit of being fair and balanced...
Here's the top 10 list of what the BC liberals are telling the public...but just ain't so:

1. The HST Legislation cannot be undone.

Wrong! and this one got me bad.

Page 11, section 42 of hte Comprehensive Integrated Tax Coordination Agreement (CITA) that BC signed with Ottawa to create the HST says, "The terms and conditions of this Agreement will continue in full force and effect, in accordance with and subect to the provisions of this Part, until the date that is specified by a Party in written notices that is delievered to the other Party setting out the Party's desire to terminate this Agreement."

Want that in layman's terms? If there are enough people that don't want HST, it can be overturned.

Want an example? Saskatchewan adopted HST in 1989 and two years later repealed by the newly elected government.

2. The HST is a streamlined, more efficient tax

Ummm....no, not really. The Tax act (CITCA) has 16 pages of formula definitions that require mathmatical experts to compute the tax and the formulas are quite intimidating.

Humans are really great at taking something simple and making it horribly complicated. In fact if they just modified the PST to provide input tax credits to businesses, with a reduction to 3 or 4% to compensate for the expanded tax base would be way better off. Don't understand what I just said? Me either, but try explaining the formula for HST in less then 3 sentences...let alone 16 pages of mathmatical formulas.

3. BC must adopt the HST to compete with Ontario

Nope, no way, BC's closest trading partners (Alberta, the US and Asia) don't have HST.

Plus, when did BC ever have to compete with Ontario?! We're not smug...we're just better.

4. HST rebates will offset the extra costs to seniors

Why must be abuse the generation we will all eventually become?

The HST rebates will be applied as a percentage of the tax, but with a much larger gross tax amount (12% on HST vs. 5% on GST). This means a greater portion of our pensions will be required to pay the differerence between the rebates and the larger amount of overall tax paid.

Why screw over granny and grandpa, Gordon Campbell?

5. HST does not apply to new home construction under $520,000

Nope. All home construction has HST applied.

6. HST will not affect rents/strata fees

God, I love this neo-liberal Reganomics approach to the economy. They claim that when they save the producers money the producers will voluntarily pass down the savings to their consumers, so that would apply to this situation as well, right?! SOOO WRONG. An extra 7% will be applied to all goods and services required to upkeep and maintain buildings so even though the HST will not directly be applied to rents and strata fees, we alls gonna be in the poor house with these extra costs.

7. HST was the Federal govt.'s decision

Umm...things like taxes are a provincial matter, ever heard of federalism?

No? Then the Constitution Act of 1867 can elaborate.

8. HST will create jobs

The public should know by now that whenever politicans want to pass something controversial...they will claim it will generate new jobs and more money for the people. The thing is if its controversial in the first place, that usually means a small minority is looking to benefit over a huge majority.

Almost every small business from the service sector to the production places (alliteration...gotta love it) have stated that HST will cost them business which will most likely lead to more layoffs.

9. HST will lower prices

Umm...say what? Anytime you add 7% to the cost of anything...the price goes up...I know magic, right?! (if you can't smell the sarcasm in my writing, you must not get me at all).

10. HST is revenue neutral

First, the govt. said it would be revenue neutral. Then they said it be redistrubted into healtcare, next they said there would be a first year overall loss of $13million to implement the tax. Finally, they said without HST there would be cuts to healthcare and other essential services.

The funny thing is that its not like HST is an invading force that must be dealt with. The Liberals consciously chose to implement it so, intimating citizens by saying that without it would threaten the healthcare systemis not only wrong...its a cheap shot.

....and i'm spent.