Premier Christy Clark is supposed to announce some bold shifts in her government’s approach to the HST by the end of May.
She is doing so because she wants the people of B.C. to support the new tax in the mail referendum. To do so, they need to vote “no,” as the referendum question is “Are you in favour of extinguishing the HST (Harmonized Sales Tax) and reinstating the PST (Provincial Sales Tax) in conjunction with the GST (Goods and Services Tax)? “
An advertising campaign is underway to convince people to vote “no,” and ads that push for a “yes” vote are in the works as well. Most members of the business community are lobbying hard to keep the HST, as it is generally good for most businesses.
Clark may tinker with some aspects of the tax, but fundamentally it remains a major shift of taxation from businesses to individuals. Those who spend more will pay more. Those on the lowest end of the spectrum will likely be unaffected, because they receive an HST credit. It is those in the middle, people being squeezed by everything from higher MSP premiums, higher gas prices (due to higher TransLink and carbon taxes, as well as oil prices), higher ferry fares to potential boosts of 50 per cent in BC Hydro rates, who are most upset about this tax. They have very good reasons to feel that way.
The provincial government adopted the HST in 2009 in a very sneaky manner. The 2009 election campaign barely mentioned the HST — two months later, it was implemented. The premier and finance minister promised massive job creation and lower retail prices — neither has happened.
At the same time, the province boosted many other taxes and fees, as noted above. Most of those who pay the HST are now paying much more to government than they were in the spring of 2009.
The HST will be good for the business community. That’s a given. There will be some job creation, although it is likely going to be far more modest than politicians claim.
The question people should ask themselves before they cast their votes is this — is the immediate sting of the HST worth enduring, in order to create more jobs in the longer term?
Clark can make promises and even hand out cheques, but if most people only consider the immediate short-term effects of the tax on their pocketbooks, it’s doomed.