BC and HST (Harmonized Sales Tax) “Harmful Sales Tax”

Starting July 1, 2010, the residents of British Columbia will be paying 7% extra on food, bottled water, drinks, and a plethora of other things that were previously exempt from the PST (provincial sales tax). Historically, consumers pay a mandatory GST (Government Sales Tax) of currently 5%.  Certain items such as food, primarily the important one for low income families, were not taxed the extra 7% of the PST.

The federal government is offering BC 1.5 billion dollars in an effort to implement the HST and streamline tax collection.  I support the fact that they want to eliminate a whole level of bureaucracy by amalgamating the GST and the PST, but I am outraged that, at the same time, they decide to strike a few key things off the non-taxable column.

Food is a basic necessity of life, it should not be taxed.  PERIOD.

Water is a basic necessity of life, it should not be taxed.  PERIOD.

Air is a basic necessity of life, it should not be taxed.  PERIOD. (Carbon tax???)

Do you see the trend?  Because I do….

I am appalled at the governments insolence and nonchalant attitude when it comes to the poor of this province.  They’re main arguing point over the HST is that it will save BUSINESSES billions of dollars in accounting and operating costs.  Ok, fair enough.  If you implemented the HST just as the PST and GST are now, exempting the same things, but charging one tax instead of two on the things that were previously exempt.  I could see how that saves time and accounting money.

Another arguing point is that when businesses save the extra $$$ they will pass it onto consumers as saving.  Don’t hold your breath on that one.

In a recent TD Bank survey of small business owners, they asked “…what changes, if any, their company made over the past year, small business owners in B.C said they reduced their operating costs (40%, same as national stat).”

Now would a business, struggling to stay afloat in the recession, trying to reduce its operating costs; offer a (lets be liberal now) 5% savings to consumers?  The answer is probably not.

Here is an excerpt from the Province of British Columbia website, and it states:

“Under the proposed Harmonized Sales Tax (HST) most taxes paid on business inputs are refunded to the business, and those savings can be passed on to consumers.”

Ok, now let me tell you how it really works.  The guy who installs your hardwood floors, windows, garbage disposal… instead of only charging you 5% GST on labor, he now charges you 12% HST.  At the end of the year, he would get a GST rebate from the government, but now since he charges you 7% more, he can claim more; therefore getting a larger rebate at the end of the year $$$.  The government,   always looking out for you, says “they will pass the savings down to you.”

And, once again lets assume that for the sake of argument, they DO pass the savings down to you.

Every single time you buy a hamburger.  Every single time you put food on your family’s table.  Every single time you decide you take your kids out for their birthday, you will be charged 7% extra.

Sounds like a good deal to me!

Food is a necessity, you cannot survive without it.  If you don’t have that extra 7% to pay you will starve, simple as that.  You wont care about saving on double paned windows, real wood flooring or if your toilets even work (that is if businesses, in their infinite righteousness, decide to pass any savings to you) .  You will care about feeding your family.

The 2009 holidays was a record year for food banks as they had a greater demand for food than ever.  That should tell the government something….

All in all, while a good gesture, the HST fails in many ways.  As if simple amalgamation would not have been enough, why not tax food as well. Open the door for the taxation of other things.  Maybe a Clean Water Tax (CWT) or a Clean Air Tax (CAT) it will save businesses billions (the ones who’s waste did it in the first place) and create thousands of jobs i.e. you get to keep your job instead of starving.

I plead to you, if you are the 98% who do not control the wealth in this province, DO NOT SUPPORT THE HST!  It is a cash grab disguised as a money saving front.  You will only stand to lose from it.