Friday, May 27, 2011

North Vancouver MLA defends HST cut

The following is a portion of a North Shore News article by Tessa Holloway, May 26, 2011. For full article please use the link provided.

...'The changes are a last-ditch effort to sway public opinion ahead of the HST referendum, and, according to North Vancouver-Seymour MLA Jane Thornthwaite, also an acknowledgement the tax added “unforeseen extra costs” for families by shifting the tax burden from business to consumers.

“That’s why it was a rebalancing of the priorities,” she said when asked about the tax shift back to business. “With the premier coming in and wanting to make sure everything we do benefits families . . . obviously she wanted to intervene and fix it.”...

Read more: http://www.nsnews.com/news/North+Vancouver+defends/4845404/story.html#ixzz1NZNaIst6

17 comments:

Anonymous said...

http://www.youtube.com/watch?v=nZXu3LXNwEg&feature=youtube_gdata_player

Anonymous said...

So the Libs propose a 10% sales tax by 2014 and the other folks would like us to keep a 12% sales tax.

The reduction in the HST is transfered to corporate tax to make up the difference.

Gee. Do I want to pay more tax or less tax....let me see.....

John Sharpe said...

The "other folks" want the sometimes 12% tax back. Not all items had 12%. There were a siginifigant amount of PST excemptions for basic items; bicycles and accessories, strata fees for owners (hence rent increases), pre-packaged foods, non-prescriptions drugs, cable, phone, internet, haircuts etc. etc.,...

In my letter to the editor to the NSNews I suggested the HST be trimmed to a this 10% level as an offset (just mentioning, not tooting my horn).

Anonymous said...

So the anti HST crowd are getting the 10% they've been wanting, but now that they have they still aren't happy.

Anonymous said...

The principle of the HST is good for business--unfortunately, they don't appear to be passing on their savings, and until one major business takes the bold step of actually reducing prices, no one else is going to either - it's just too tempting to hang on to all this found money.

In practice, the HST is good for government because they are raking in all kinds of extra dough, and that is what is pi**ing people off. If the government can keep the same exemptions as before, or something reasonably close, people will have no problem with what is in effect a new way of collecting the old tax. I participated in a telephone town hall where people complained bitterly about the tax on formerly exempt purchases and I also completed the questionnaire at hstinbc.com however I don't think the tweaking that was announced last week goes far enough. I'm not sure that they've addressed those concerns appropriately or adequately.

Anonymous said...

As usual the simple concept of 1 + 1=2 escapes the majority.

The ranters are very clear that they want better:

schools
universities (no tuition increases)
highways
bridges (no tolls)
environmental protection
hospitals
medical care etc,etc,etc


It has to be paid for. All of the above have been degrading for years.

So the moral of the story is let's have a general acceptance of lower provincial service levels (not a chance) or pay the taxes that support the levels that the majority demand.

There's no free ride.

John Sharpe said...

None of the HST money goes to the list of services you provided. The HST is simply a shift of tax from business to you and me joe/jane taxpayer.

I for one don't expect services to be provided if the money is not there. At the same time I don't mind paying taxes when there is a good return for the value of taxes paid. I'm an advocate for cost efficiencies. Maybe services do need to be reduced for a time rather than continually raising taxes.

Couldn't agree more with Anon 11:31AM; Businesses will never drop their prices with the HST. They will pocket the difference.

Anonymous said...

I'd be curious to know how the 10% HST compares to the old GST and PST in actual numbers, especially as it relates to those few items that were exempt from the PST. The old tax came to 12%, with a few things lower due to the PST exemption. Now it's 10% right across the board. To me, that seems a better deal, as I don't recall too many of my purchases in the past being PST exempt, when compared to those items that are presently HST exempt. Does anyone know of any studies that would show this comparison? My impression is that the 10% is better for me in the long run.

John, what makes you think that the HST won't go to those things listed by the previous poster? Does it not go to general revenues to be spent on infrastructure, among other things? Which taxes do those services get funded from? Please explain.

Anonymous said...

John is in error. HST revenue goes to general revenue which helps fund the items on the list.

Anonymous said...

So how can we conclude that the government is gouging with a 10% HST?

Let's compare it to the HST in other Canadian provinces for a real life example:

Ontario 13%
Newfoundland 13%
Nova Scotia 15%
New Brunswick 13%
Quebec 13.5%


Are we spoiled whiners, or what?!

Anonymous said...

Jayne:
The HST applies to new Real Estate over $535,000.00. When the average price is $725,000.oo the differential of $190,000.00 is subject to 12% HST or equivalent of $22,800.00 additional property tax added onto the property transfer tax. So therefore a large number of young families with single income earner and children, can NO Longer "qualify" for a mortgage of $747,800.00 ( 725,000.00 + $22,800.00) before the Property Transfer tax of 1% on part 1 and 2% on part 2. This is in addition to the $325.00 of additional HST that small families are Over Charged as announced by the so-called Independant Panel (Ha, Ha, "that is a funny Title" ). With a new minimum wages increase up to about $10.50 or about this amount, small to medium business can Not Lower the price of Goods and Service. Thus the promise of Revenue Neutral only is true if all the small business lose money and close down permanently. What Accounting Degree did the Finance Minister obtain in order to qualify for the job.

Gary H said...

John:
The BC Property Transfer Tax is 1% on the first $200,000.00 of $725,000.00 new home or equivalent of $2000.00; this is part 1. the same part 2 tax is 2% of the remainer of $525,000.000 or equivalent of $10,500.00 on the total market value of $725,000.00 before the HST is added to the purchase price of the property.
Therefore the added cost is as follows: HST = $22,800.00 ; BC Property Transfer Tax = $12,500.00; Grand Total of $35,300.00 on top of the $725,000.00 purchase price which equals $760,300.00. So Fight the HST or it will fight you for 40 years by means of a mortgage debt.

Gary H

Anonymous said...

When the movie and mining industry receives provincial tax credits, federal capital cost allowance, HST rebates, and capital gains tax exemption over $500,000.00, I honestly wonder if the British Columbian small business person will survive the economic recession because of the inequality and neglect that the B C Liberal Government subject us to, in exchange for the favouritism and pampering that the previous mention industry receives from Liberal Government. The "air" smells of "Corporate Welfare" in the most obvious sense.

Anonymous said...

HST is on the purchase of new homes. So it appears likely that older used homes will be taxed next also , as soon as the Referundum No side uses deception to win their case.

Older home sales is a huge revenue source potential for the BC Liberal Finance Minister.

Many Young families do no have any capability to own a home if HST remains. Others will be penalized.

Anonymous said...

Gary, what young family with a single income is going to be affording a $725,000 dollar house?! I suspect the vast majority will be looking at homes that are unaffected by the addition of HST.

As for the comments about corporate welfare to the film, mining and forestry (you missed this one, so thought I'd add it) industries, is the Liberal government the only one who provided tax breaks to these industries? Did the NDP not provide any incentives for these businesses to operate in this province?

Stew said...

This tax shift is another welcome development for conveyancing companies to maximize the incentives being granted for building and construction as well as easing the process of property transfers.

Geoff Granfield said...

Are you running around tax season? Strategic tax planning will assist you to get all through tax season organized and prepared, combined with causing you to be a chance to check out any other tax breaks and write offs that you could neglected, as you have more time to determine if the deductions and breaks are appropriate. Uncover more tax organization tips on this page! http://www.tax-defense-network-tax-tips.com/tax-planning/