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.
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