Keith’s HST Article in the Sooke News Mirror
The following editorial appeared in the Sooke News Mirror this week.
A way forward to fix the HST
By Dr. Keith Martin, MP
As the provincial and federal governments introduce their legislation to implement the HST, it would be wise to look at a number of measures that would help mitigate the impact this tax will have on small businesses and consumers.
To be fair, there are a few benefits. Some goods made in BC will be less costly to produce, which could lower their price for consumers. There should also be a reduction in the administrative burden on businesses. However, these benefits will be overshadowed by an increased tax burden on seniors, the poor and major sectors of BC’s economy, especially tourism, restaurants, homebuilding, and the service sector. For example, many people don’t know that the HST will add a 12% tax every year on the management fees charged on mutual funds. Since we know that most people will not have enough money to retire on, why would we introduce a hefty tax that penalizes people who are trying to save for retirement? In fact, the more you save, the more you will be taxed.
So what can be done to reduce the harm the HST will have that both the feds and the province could embrace:
1. The average house price in Victoria in November was $590,000. Yet the HST rebate only applies to houses priced at under $525,000. The HST rebate should be applied to the first $600,000 of the price of a home.
2. Apply the HST to that which both the PST and the GST are applied to. This will eliminate the tax increase and ensure that this is truly a harmonization between the two taxes.
3. The provincial government should engage in wide ranging consultations with businesses and consumer groups to find ways to reduce any harm the HST will inflict on our citizens.
4. The burden of administration on businesses must be reduced by implementing an efficient, streamlined tax reporting process.
5. The silent hand that is pushing for the HST is the federal government, which has promised our province a $1.6 billion incentive for adopting it. Prime Minister Harper should assure Premier Campbell that this money will remain on the table for as long as it takes for our provincial government to consult widely and implement the solutions required to mitigate the damaging effects of this tax on our province.
We must not introduce an HST that could hurt our citizens and our business community. Small business is the largest employer in our province. Harming them will only create more unemployment and exacerbate the current economic downturn we have been enduring. There is still time to fix the HST, but both the federal and provincial governments must act quickly and together for the sake of all British Columbians.
- Dr. Keith Martin is the Member of Parliament for Esquimalt – Juan de Fuca.
Keith’s HST Article in the Sooke News Mirror
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