Tax gets better with research

 

 
 
 

Dear Editor,

The HST is now in effect, but the NO HST group is still at work, so I decided to do a little more research to find out if the NO group had come up with any facts to support their argument.

Surprisingly, I came up with more facts to support the tax.

We have had a harmonized tax in B.C. for years: income tax. We pay our B.C. income tax to Ottawa, and they forward it to the province. This saves the taxpayers millions of dollars, and I cannot recall any NO campaign to get rid of it.

There will be no HST on basic groceries, health and dental services, hearing aids, eyewear, canes, walkers, prescription drugs, legal services, financial services, most educational services, insurance, and resale housing.

Those with income of under $40,000 will save up to $400/yr. Those with incomes of over $120,000 will pay about $400 more in income tax, and it will be graduated in between.

Those people who will pay more will be spending more and will, in general, pay more HST, those people who spend less will pay less HST.

New home purchasers will pay HST but will only pay more if the house costs over $556,150. On used homes there will be no HST, because it has already been paid once. Those paying less for a new house will pay less in total because the builder will not be paying the HST on materials.

The province will save about $300 million a year in administration costs, and business will save $190 million.

On the negative side, employees will be laid off because their jobs no longer exist.

Some provinces have had the HST since 1997: Newfoundland and Labrador, Nova Scotia, and New Brunswick. They report it has been a positive experience, as business activity has grown, mostly in the export trade, as it has lowered the cost of production.

Ontario is introducing the HST to help its sagging export markets. This will also help to lower unemployment in the province.

There are some negatives.

Students will pay HST on school supplies.

Tourists will see a higher tax on some items they purchase. The province needs to take action and look at how tourists get a refund in some countries.

The province did a very poor job with the introduction of the HST. Its explanation of why the tax was needed was a total failure. It should have been debated in the Legislature.

The NO side failed us because they did not tell us why, or come up with a viable alternative. The NO side may end up costing us a great deal of money, say a referendum is approved.

Eric J Bysouth, Langley

 
 
 
 
 
 
 
 

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