HST is Just Good Policy May 17, 2010
Posted by admin in : Bill Bennett , trackbackToday I want to talk about our future here in BC, and what your provincial government is doing to ensure that BC comes out of this global recession as a leader, not only in Canada, but in the world.
More than ever before, governments today must do everything possible to create a climate where business investment is encouraged by low taxes. This isn’t about helping business make more profit – business will take care of itself. This is about govt putting into place the right conditions for business to want to invest in creating new jobs. We saw what happened in the 90′s when govt raised taxes. Investment dried up, jobs dried up and it seemed no one in the world wanted to invest in new jobs in BC.
We should be proud of how far BC has come since 2001 when our govt was first elected. After 120 different tax cuts over the past 9 years, we now have the lowest personal income taxes in Canada and the second lowest overall tax burden in Canada – now ask yourself. Did you know that BC has the second lowest tax cost in Canada?
We’ve been creating good jobs for the last several years and the province is now a confident, positive place compared to the 1990’s. Just last week, financial experts predicted that BC and Ontario would lead Canada in economic growth.
Now — I know that harmonizing the federal GST with our Provincial Sales Tax has been unpopular, but this tax policy is just as important to our future as lowering income taxes was. And it is just another step towards keeping us ahead of the rest of the world.
Don’t take my word for it…the economist, Professor Kevin Milligan from the University of British Columbia, said recently, “HST isn’t a left-right issue, and it isn’t ideological as far as economists are concerned. It is just good policy.” The professor went on to point out that “It isn’t pro-business and anti-consumer. It is the necessary modernization of tax policy. Over time, consumers will benefit.”
You know what’s interesting is that almost every credible economist in Canada is saying we in BC will be better off in the long term because of this new tax policy. These people are not politicians. Unlike Mr. Vanderzam and the NDP, they have no political axe to grind. These experts are the people who study and understand how the economy works.
Now I want to be fair. It’s true that some items like restaurant meals and golf memberships will attract 7% as of July 1st. But it is also true that the basics in life are free of HST, basics like groceries, children’s clothing, prescription drugs, residential rent, all fuels and new houses (up to $550,000). It’s also true that local ranchers, loggers, and small businesses like mine suppliers, appliance and furniture dealers in our EK towns will be more competitive with Alberta.
You may not realize it, but when you buy a retail product or service, the price you pay includes hidden sales tax. That’s the tax that businesses pay on their costs as the product or service is produced. These businesses will no longer pay that hidden sales tax and may be able to reduce consumer prices.
Don’t believe prices will fall? According to a 2007 study by University of Toronto professor Michael Smart, in the Maritimes consumer prices fell after HST was introduced. If you want more proof, there are a number of studies showing that consumer prices are lower in countries that use a value-added sales tax like the HST. It is in the opposite from what you are being told by Mr Vanderzam and the NDP.
It’s the truth that for the most part, the public debate about HST has only been informed by the opponents. Did you know, for example, that a sales tax is known as a consumption tax – and that every tax expert in the world tells us consumption taxes are fairer and smarter than income taxes because with a consumption tax you pay on what you consume, not on what you earn.
What’s true and what’s most important about HST is that we will see thousands of new jobs in our communities and a stronger, more competitive British Columbia.
For the truth about HST, go to: www.gov.bc.ca/hst
Authorized by Bill Bennett, registered sponsor (IPA-2010-002-035) under the Recall & Initiatives Act, 250-919-2255
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