Manager’s Perspective
By David Mitchell, General Manager
Community Futures Mount Waddington
The HST Referendum question reminds me of that old Calypso song “yes we have no bananas, we have no bananas today.” It’s vote “yes” if you want to “extinguish” the HST and vote “no” if you want to keep the HST. How you vote on this question will likely depend on what you have read or heard in the media. Though there are some hard numbers that indicate that a 12% HST will cost British Columbians more there is also significant anger about how the HST was launched in BC. From the website “saynotohstinbc.ca:”
The Liberal Government in British Columbia implemented a new tax without public consultation on July 1, 2010. HST which stands for Harmonized Sales Tax, is the combination of Provincial Sales Tax (PST) of 7%, and Government Sales Tax
(GST) of 5%, into one new tax, HST of 12% (reduced to 10% by 2014). The HST disproportionately impacts lower income earners because far more of their limited income will be spent paying the now extra 7% tax than higher income earners.
No public consultation? Does government normally consult us on the work it does? I thought that consultation took place every four years in the form of an election.
Bill Vander Zalm’s website “fighthst.com” suggests that the number one reason to vote yes is that the “HST threatens democracy.”
And that “a defeat of the HST in the Referendum will change the way governments operate in BC forever.”
Wow I wish it were that simple!
From Report on Small Business Magazine on June 30, 2011, Tony Wilson wrote:
If the HST survives the mail-in vote, the rate will go down to 11% on July 1, 2012, and down again to 10% on July 1, 2014, at which time BC and Saskatchewan will have the lowest combined sales-tax rates in Canada – leaving aside Alberta, which doesn’t have a provincial sales tax. Additionally, families in BC will receive a one-time payment of $175 a child to deal with the extra expenses they have incurred since the switchover to HST. BC seniors will also receive $175 if their net family income is $40,000 or less – if their income is more than $40,000 but less than $50,000, they will receive a partial rebate.
The independent panel that reviewed the HST and the PST plus GST tax systems recently estimated that families now pay an average of $350 more in sales tax under the HST than they paid with the PST plus GST system. With a 10 % HST rate, instead of paying $350 more tax, BC families will on average pay $120 less tax than under the PST.
The independent panel also noted that while consumers are paying more, businesses are saving money. Furthermore, the Province remains committed to balancing the budget in 2013/2014 while reducing the HST burden on families and modest income seniors. To help meet this commitment, government will increase the general corporate income tax rate to 12% from the current 10% on January 1, 2012, and postpone the reduction in the small business tax rate planned for April 1, 2012.
This an interesting point because many of the anti-HST spokespersons say that rather than benefitting the average British Columbian, it is corporate BC that stands to benefit from the HST.
Frank McKenna, (you remember, the successful Ex-Premier of New Brunswick?) recently weighed in to the BC discussion in an article in the Vancouver Sun. Mr. McKenna is now the Deputy Chair, TD Bank Financial Group and he wrote:
Many of the arguments being used today were made in New Brunswick, when my government introduced the tax back in 1997. In hindsight, the evidence is clear. The benefits far outweigh the costs. The HST has created a positive climate for economic prosperity. And it has done so without imposing a significant tax burden on consumers.
In case you think this is just a fat cat bank executive spouting off, Mr. McKenna qualifies his position stating:
Of course, not all firms have benefited equally well under the HST. Financial Services like TD cannot claim back tens of millions of dollars they spend annually on a wide range of goods and services… However the bank remains a proponent of harmonizing tax regimes, given the net benefit to Canadians.
One of McKenna’s favourite sayings is: “the best social program we have is a job.” His article goes on to say:
Lowering the tax burden on business ultimately reduce the price tag of goods and services we consume. It also encourages investment that boosts productivity and in turn generates greater prosperity. – The Vancouver Sun, July 2, 2011
Who do you believe?
Thanks to the postal lockout you now have two more weeks to get your mail in vote completed and back to elections BC. The date was extended to August 5 from July 22.
We are nearing the end of the government process parade: the federal election, Census 2011, the HST Referendum…. Can a provincial election be far behind???
My Perspective
I wish the manager of the Community Futures, Mr David Mitchell, would take this Community at heart and learn as much about Community Futures that he did about the HST Tax. He should spend his time that he's getting paid for by the public dollars to learn how the Board of Directors should be elected,
like Nominating Commitee, like having and Annual General Meeting (AGM), like having an election as described in the By Laws #1 or so called "Constitution", responsibility, accountability, all that sort of thing to make this Community Futures work for all of us, not just a few people. He can click on this
link to learn about it. If he wants to learn a little bit more he can
click here
You're right David, "You have no bananas today and you didn't have any yesterday either."
