Friday, April 9, 2010

Help save the tax collectors, accountants and rich, stop the HST

From 24 Hours on Thursday

This week sees the start of a petition campaign against the HST in BC and I have to wonder who benefits from keeping the PST? Who will be happier if we do not change to HST? We have heard about the restaurants and self employed but there are also the tax collectors, accountants, the rich, export countries, and Ontario that come out ahead.

It costs BC about $30,000,000 a year collect the PST, keeping the it means keeping tax collectors employed. Anything that reduces the number of tax collectors is something I can get behind. Sign the petition to keep those tax collectors working.

It costs BC businesses about $150,000,000 to manage the PST, much of this money goes to accountants. Losing this cost means will businesses will have the resources to employ 1500 to 2000 more people doing something that makes money.

If we keep the PST, it is the rich will be financially better off. The top 20% of society spend the most money on meals out and self employed contractors. You know how tough life is for people earning more than $100,000 a year, they need you to sign the petition to save them money.

Our PST works like a tariff on our products. Changing to the HST will make our products more competitive globally, especially things like value added wood products. Changing will mean the average cost of our exports will be 3.5% lower than now. This may not sound like a lot, but it is enough to allow mines and sawmills to operate more of the time. This should be worth about $3,000,000,000 in extra exports next year and an extra 10,000 or more jobs next year.

HST is better for business investment, so if we retain the PST Ontario will get more investment especially in film and high tech. If you want businesses in Toronto to do better, please sign the petition.

Overall construction costs in BC will be about 5% lower with the HST. This will make it cheaper to build schools, roads, houses, offices and manufacturing facilities. Odds there will be 3000 to 5000 more people working in construction in the next year because of the HST.

The increased employment in the first year of the HST will be worth at least $1 billion in wages and as much as $2 billion. This increase in jobs means more retail sales, more provincial incomes taxes and fewer people requiring EI or social assistance. In the first year of the HST the economy of BC will grow fast enough that people will see the benefits, most of these benefits will be seen by skilled blue collar labour.

If you are worried about unemployed tax collectors and accountants, the rich paying too much in tax, and other countries not being able to compete with our products, you should sign the anti-HST petition.

If you want lower prices, more jobs, more investment and a faster growing economy in BC you need to support the HST.


Chad Moats said...

Where did you get your numbers?

Thin air? or just more speculation?

Bernard said...

I used data from BC Stats to work out the jobs created. I also used the estimated cost savings for industry for what is likely to happen on the business side.

I used the CCPA report on the HST as the basis for the impacts for people based on their incomes.

The economic data says this good, I have yet to find a well done study that indicates the change to the HST would be harmful to the economy or harm lower income people

Chad Moats said...

You admit that it is mere speculation. At least somebody is admitting it.

Why would you expect that any corporation will reinvest 100% of their savings, or pass on any savings?

The experience with MST change to the GST shows that operators will absorb the price into their bottom line to increase their margin.

My question is, if this so good for the economy, what is consumer rate of return of the nearly $2B tax shift invested in businesses across BC?

Anonymous said...

My, what a woefully ridiculous diatribe.

Who cares if there are fewer tax collectors if you are still PAYING MORE TAX?

Also, why SHOULDN'T you care about unemployed accountants? Don't they deserve to eat and support their families? And if you balance out "new employment" (having worked in the industry, I can tell you those numbers are so not accurate, it's all marketing for the HST, or existing jobs dressed up to look like new jobs) with laid off exactly is this increasing employment?

This is a sad, ill-informed little post.

Anonymous said...

I see you have a limit on what I can write. But I understand after the article you wrote in the 24 Magazine.
Who paid you off to write that. HST is going to cause more poverty and homelessness than you can imagine.
I probably make five or ten times the money you make. So I'm not taking like a homeless person.
But the HST is going to cause more poverty in this province than you can imagine. And their's already too much.
This will devide the classes which is their intention. But as well as their intended upper class, which isn't large enough to sustain a community, there is going to be more poverty.
You sir, are an idiot. You either didn't think things through before writing that article, or you were paid to write it.
Good luck with your mortgage, and your next car purchase, and your next restaurant bill, and your.......well, you get it. But you will probably be alone until the restaurant goes under because most people won't be eating out.