Tuesday, April 26, 2011

We have too many questions ... and not enough answers

HST in BC is the government website, set up to provide details on the tax, in an impartial way. At least that is what they want us to believe – but is it? Just one of the things they have on the website is a little quiz we can take to see if we truly understand the tax. Have a look at the questions on it, and see what you think.

1. The combined PST / GST rate was 12 per cent. What is the total tax rate under the HST?
The choices are 12, 15, 19 or 24%. Notice how none of the choices being offered are less than 12%. Given that the tax now applies to an additional items not previously taxed, should we not have a choice under 12%??

2. How many Canadian provinces and territories still have a retail sales tax like the PST?
How do you feel about the wording of this question? Isn't the use of “still have” sound kind of negative to you? And regardless, what difference does it make?

3. Which of these has a point-of-sale rebate to keep the sales tax at only five per cent?
Our options are Child sized clothing, books, motor fuels, none of the above, or all of the above. First off the tax applies to many items not previously covered – INCLUDING “childrens” clothing. Prior to the implimentation of the HST, you were able to have an exemption at the point of sale -- now you are no longer able to do this. A child who is larger than average, taller for example, will need to purchase adult ‘sized’ clothing on which the tax now applies – there is NO WAY to have it exempted as you were before -- that is fact.

4. Which flights are the only ones where a passenger flying from BC will be taxed at the full 12 per cent HST rate?
Given our level of taxation, our family budget doesn't have the luxury of including flights anywhere, so I don't really care.

5. Even though you see 12 per cent HST on your home BC Hydro bill, after the BC HST Residential Energy Credit, how much more tax do you pay on the electricity under the HST than you used to pay under PST?
Regardless we now have a tiered cost on our hydro bill – and BC Hydro is trying to push through a 50% rate increase. Trying to get more from us would have created riots in the streets.

6. The B.C. HST Credit is issued four times a year along with the federal GST credit. Approximately how many British Columbians will receive it in 2011?
The BC Business Council has studied the tax extensively, and released a report that confirms the tax has its greatest impact on middle income families, and that those with low incomes are the least impacted. Regardless, the government has chosen to have cheques issued to low income people / families. Again they are robbing Peter to pay Paul.

7. How many other countries have a value-added tax like the HST?
IF it's a good tax who cares?? Sell me the benefits – I want to know why is it good for me because so far the HST has cost me more money – a LOT more than the old taxation system.

8. Switching from two separate tax systems to one harmonized system will save B.C. businesses an estimated how much in administration costs annually?
That might be so, but I sure haven’t seen those savings passed on to me. Seems to me that if the tax has benefited business, they'd be doing everything they can to prove the HST has saved me money. I have not heard any of them say so, and none are giving examples of how the savings, they are enjoying, have been passed on to me.

9. Over the medium term, the HST is expected to create how many additional jobs in British Columbia?
Until there is proof of any jobs being created, any figures they offer are simply guesses. The answer, at least for now, is “Zero”

10. Under the sales tax harmonization agreement between the B.C. and the Government of Canada, how much was given to the province by the federal government in transitional funding?
I can answer that one off the top of my head --- the amount was 1.6 billion. I want to know what the results will be if we vote to end the HST – do we have to pay it back? Our BC Liberal government refuses to answer that question, and so how can I be expected to choose without full knowledge of the facts of my choice?

11. If you buy a picnic basket, a loaf of bread, a bottle of mustard, a package of deli meats, a block of cheddar cheese, 2 litres of soda, some batteries, a blanket and a small portable radio, how many of these items have more tax under HST?
Again I don't care --- the tax has been added to more items than I paid GST and PST on previously. That means it costs me MORE --- period.

12. Which one of the following home expenses are subject to HST?
I get to choice from Rent or mortgage payments ... Maintenance ... Insurance ... or Strata fees.  Why such a short list?  Home ownership requires much more than that, and those additional items do cost more because they are now subject to the HST --- additional taxation!

We are being provided with the opportunity to retain or get rid of the HST --- BUT – again how can we vote on a tax that we do not have full information on as to its benefits or lack thereof.  AND … what about that $1.6 billion dollar payment from the Federal government?

Right now we have too many questions, and not enough answers, to be able to make an informed decision.

I’m Alan Forseth in Kamloops, and those are the thoughts, and questions, of one conservative.

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