Wednesday, May 11, 2011

The HST makes for great news if nothing else

It's election day in Vancouver Point Grey, and BC Premier Christy Clark is hoping to have success in the polls with a by-election victory.

We'll be having another vote soon with the HST, which has been in the news now for two years.  With that in mind, here are the words of Christy Clark regarding the HST ... along with many others well know in BC politics. 

Christy Clark (Leadership bid announcement – December 2010) … describing the HST as "fatally flawed from the outset" and saying the Liberals could "put the HST behind us" with a free vote on the floor of the legislature by the March 31 end of the current financial year.

Christy Clark (CBC News  - August 2009) … it was "sneaky" of the Campbell government to announce the HST after the May provincial election … it seems impossible the tax wasn't contemplated before the spring ballot.  "I just don't think it's possible that that could be the case"


Bill Tieleman (June 2010) … “(Gordon) Campbell and (Colin) Hansen also think it's a myth that British Columbians will remember the HST after it's been imposed. In three years they think the B.C. Liberals can be re-elected, likely under a new leader.  I'm betting they're wrong … “

Christy Clark (January 2011) … “My personal preference is that I hope that it does (pass) because I think the HST is a pretty good piece of economic policy.”

Christy Clark (August 2009) … "It was quite clear the government was going to be faced with this decision in March when Ontario adopted it, and they never thought to mention it to the voting public. I mean, it's just sneaky all around and I don't think that sits well with people.  The combination of their sense of justice about it and the big bribe from the federal government, I believe that's what persuaded them to do it."

George Abbott (BC Liberal Leadership candidate – Feb  2011) … "For two months she has been telling British Columbians that the HST referendum was unnecessary, a waste, and that the decision should be made by politicians, not the public," Abbott said. "Suddenly, she now wants people to believe she supported the referendum the whole time. More and more, it's abundantly clear that Ms. Clark's positions are simply not credible."

John Cummins (BC Conservative Party) …  “Because as it is introduced now...it simply is an effort to balance the books," he said. "We think that's unhelpful to grow the economy in this province."  “In British Columbia, the HST is nothing more than a tax grab … it simply is an effort to balance the books.  We think that's unhelpful to grow the economy in this province."

Adrian Dix (BC NDP Leader) … “Their actions from day one have been unprincipled, and the public can’t trust them.”

Vaughn Palmer (Vancouver Sun) … “As a politician, Clark might prefer to spend as little political capital as possible fighting to save a tax imposed by her predecessor. But as a policymaker and head of government, she has no choice but to try to forestall the reckoning.”

Bill Vander Zalm (former BC Premier) … “The government’s announcement today means everything is stacked against ordinary citizens who want to eliminate the HST.  It is totally unfair, totally biased against the consumers who are paying this terrible tax and want to get rid of it.”

Chris LeFevre (Victoria Developer) … "It has created a psychological barrier," he said. "The biggest effect is it can cause confusion to a new purchaser and that in itself can cause some trepidation, particularly if that purchaser thinks the HST might disappear (after a referendum)."

John Cummins (BC Conservative Party)  …. "The tax was supposed to be revenue neutral with higher consumer taxes offset by savings for business and lower prices. However, this report shows that businesses are only saving $730 million. The HST has been a huge windfall to the government - they are taking in $600 million more than they were before."

Finance Ministry … Completely axing the controversial harmonized sales tax to bring back the former provincial sales tax would cut $5-billion in annual revenues for B.C. and force program cuts as well as “dramatic” increases in income tax and other levies, according to Finance Ministry documents.


And what does Christy Clark have to say now …

“One of the things that we are doing as a government that I think is different, that government didn’t do before, is that we’re listening to British Columbians, recognizing there are things people want to fix about the HST.”

Premier Christy Clark is promising to lighten the burden of the harmonized sale tax, dangling the possibility of rebates, exemptions – or even a cut to the rate.

Ms. Clark’s move comes after a government-commissioned report concluded that the tax is a cash cow for the province, and that the average B.C. family will pay $350 more a year in sales taxes since the HST was enacted in 2010.

Premier Christy Clark continues to move away from the view that B.C. would be fully on the hook for $1.6-billion in federal transition funds if the harmonized sales tax is axed in this summer’s referendum.

The Premier is promising to work to “minimize” the amount the province would owe Ottawa, but is also suggesting any negotiations would be tough. It’s a position that may be used to bolster support for the HST as the referendum looms: Axing the tax may be both difficult and expensive.

Premier Christy Clark insists she’ll fight to “minimize” the money the province would owe Ottawa if voters defeat the HST in an upcoming mail-in referendum.

Ms. Clark is belatedly offering some possible sweeteners, including rebates and an eventual cut in the HST rate. There are better ways to make the HST more palatable. Ms. Clark might, for example, offer British Columbian's the prospect of an income tax break as the revenue collected by the province grows.


I’m Alan Forseth in Kamloops … and those are stories from the news ... on the HST.

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