HST or PST check out this link..too long for me to post

Discussion in 'General Open Forum' started by Islandgirl, Jun 16, 2011.

  1. Islandgirl

    Islandgirl Active Member

  2. alwaysfishn

    alwaysfishn Member

    Here's a little more objective review of the HST:

    http://www.taxtips.ca/gst/bchst/whyhstisgood.htm

    On May 25, 2011, the BC government announced in a news release that if the HST is kept, the rate will be reduced to 11% on July 1, 2012, and to 10% on July 1, 2014. Also, one-time payments of $175 per child will be issued to families with children under 18 years old, as well as to low- and modest-income seniors. This will be offset by an increase in the general corporate income tax rate from 10% to 12% effective January 1, 2012, and a postponement of the reduction in the small business tax rate to zero% planned for April 1, 2012.

    The reduction to the HST and the issuance of one-time payments were included in a binding motion passed in the BC legislature on May 31, 2011. See the Ministry of Finance news release.

    This will probably convince the HST haters to vote NO to reinstating the PST, because who would want to keep the higher tax? All the same, we'll still present the reasons why we think the HST is a good thing.

    Why was the PST bad?

    Much of the cost of the PST to consumers was hidden, by being embedded in the costs of businesses. This included the PST on the cost of electricity, gas, computers, equipment, furniture and fixtures, shelving, vehicles, consumables such as office supplies, services to repair computers, equipment, etc.

    This means that we have been paying hidden PST costs even on those items on which PST was not added to the selling price, such as restaurant meals, movie tickets, sporting events, haircuts, etc.

    It was not only a tax on consumers, but a tax on business investment. If a business wanted to purchase assets to build a business and hire employees, it would have to pay PST on those assets. This means that the business has to charge more for its products, to recover the cost of the PST. The other option would have been to start the business in a more tax-friendly locality.

    Note that large businesses, with taxable sales over $10 million, will not be able to recover the provincial portion of the HST completely until July 1, 2018, due to the rules on restricted input tax credits (RITC). These rules apply to specified property or services, which generally means a road vehicle, energy, a telecommunication service, or meals or entertainment. No recovery of the provincial portion of the HST on specified property or services is available to large businesses until July 1, 2015, and the amount recovered increases each year until the restrictions are removed effective July 1, 2018.

    Although the HST means less work for accountants, most of them will tell you that they are in favour of keeping it.

    BC Tax comparison 2000 to 2011 - see the change in income tax levels from 2000 to present.

    Why the HST is good

    Reducing government spending

    To reduce personal income taxes, government spending must be reduced.

    To reduce government spending, bureaucracy must be reduced.

    Getting rid of the PST eliminates an entire bureaucracy - laws, regulations, court cases about the PST, civil servants (processing payments, auditing, answering questions from businesses who can't understand the complicated rules, etc.)

    If you want to keep hiring more civil servants, vote to bring back the PST.

    Increasing government revenues

    The government collects more income tax if more people are working in the private sector and earning more money.

    Businesses which are profitable can hire more employees.

    With the HST, businesses now recover the 7% paid on assets and consumables used in the business.

    If businesses are attracted to BC because of the lower tax base, more employees are hired, reducing the unemployment rate.

    When there are fewer people looking for jobs, wages increase because businesses are competing for employees.

    The government gets more revenue, because they are receiving more income tax from businesses and employees, and paying out less in unemployment insurance and social assistance.


    Is it costing individuals more?

    Low income individuals will receive a net benefit from the move to HST, because they receive the BC HST credit of up to $230 per person per year, and the majority of their spending is unaffected, such as:

    - basic groceries
    - rent
    - home heating
    - gasoline
    - children's clothing
    - insurance

    All individuals benefit from the increase in the basic personal amount income tax credit, which reduces income tax by about $80 per person per year.

    High income people pay the most HST, because they spend the most. However, the proposed rate reduction should mean that the majority of us will eventually pay less under the HST.

    Since the HST was introduced, the BC inflation rate has gone up 2.6% - this is comparing April 2011 to June 2010. This is the second lowest inflation rate for this period for all provinces, and it is lower than the Federal rate of 3.1%.
     
  3. yammy5

    yammy5 Active Member

    Last report I saw indicated that the HST was costing familes over $350 per year and we can't trust the lying Liberals to reduce the HST in a couple years so it's ADIOS HST!!!!!!!!!!
     
    Last edited by a moderator: Jun 16, 2011
  4. scott craven

    scott craven Well-Known Member

    It's all smoke and mirrors, the gov't will get their pound of flesh and that's for sure.
    It doesn't really matter what they tell you now, becaue they will reverse the decsion
    later when they need more money.
    Sound cynical ? yep that's what age does to you :p
     
    Last edited by a moderator: Jun 16, 2011
  5. alwaysfishn

    alwaysfishn Member

  6. scott craven

    scott craven Well-Known Member

  7. alwaysfishn

    alwaysfishn Member

    It's called education.... same stuff they try to do in our schools, universities and colleges.
     
  8. Islandgirl

    Islandgirl Active Member

    We are building right now.. When I spend 100 000 on labour I used to pay that plus 5% for a total of 105 000 for labour. Now with this new tax, I pay 12 % and that brings the total to 112 000..That extra money paid to the government has to come from somewhere. ( our wages have not gone up 7%) So we spend less elsewhere in our local economy. Does that hurt local businesses ...YES it does. Does it drive make an underground economy.. YOU BET it does.

    Vote YES
     
  9. alwaysfishn

    alwaysfishn Member

    Unless your construction costs are over $525,000, after rebates it will not be costing you any more now than it did under the old PST. http://www.cra-arc.gc.ca/E/pbg/gf/gst191-ws/gst191-ws-fill-10e.pdf

    It's unfortunate how little people understand about the HST. Once the HST is lowered to 10% most people will be paying less tax over all than they did under the 7/5 - PST/GST.

    There is always a period of adjustment after a tax system is changed. When the GST was introduced the naysayers said it was the end of Canada! Seems Canada is doing quite well since then. HST is no different.

    Vote YES to keep the HST!
     
    Last edited by a moderator: Jun 17, 2011
  10. Labman2

    Labman2 Active Member

    New member, 5 posts! 4 about the HST/PST, 1 about the Canucks.
    Alwaysfishn seems a very appropriate handle!
    Just Saying.
     
  11. alwaysfishn

    alwaysfishn Member

    Before I registered I checked out to see if this was an open public forum.... and it is.

    Do you have a suggested list of topics that you'd like me to post on?

    Just Asking.
     
  12. Labman2

    Labman2 Active Member

    Oh, I don't know, how about Fishing.
    Just answering.
     
  13. danthewire

    danthewire Active Member

    Got the trolling part down pretty good.
    Dan.
     
  14. alwaysfishn

    alwaysfishn Member

    Since when did responding to a post become "trolling"?
     
  15. alwaysfishn

    alwaysfishn Member

    Never thought I'd see you defending me, Holmes! Thanks, I think.... :)
     
  16. alwaysfishn

    alwaysfishn Member

    It's a great way to get the underground economy, ie:drug dealers to pay their share of taxes. You know they aren't paying any income taxes and they certainly aren't getting any HST credits or rebates!
     
  17. alwaysfishn

    alwaysfishn Member

    It doesn't look to me like BC's economy has been hurt much by the HST.... The housing market particularly seems to be flourishing.

    From Stats Can economic indicators by province, BC, May 2011 versus May 2010:

    Employment: Up 1.3%
    Labour income: Up 4.8%
    Average weekly earnings: Up 3.52%
    Manufacturing Sales: Up 10.3%
    Building permits: Up 14.7%
    Housing starts: Up 23.2%

    http://www40.statcan.ca/l01/cst01/indi02k-eng.htm
     
  18. alwaysfishn

    alwaysfishn Member

    Same reasons that people were up in arms when the GST was originally introduced....
     
  19. scott craven

    scott craven Well-Known Member

    B.C'S economy has been somewhat insulated against the recession but i certainly wouldn't credit that to the HST.
    Personally i don't enjoy paying an extra 5% every time i but a vehicle or boat.
    Nor do i enjoy paying additional 7% every time i pay my cable bill,eat at a restaurant, pay the vet, buy a newspaper, or renovate my home, to name just a few.
     
  20. scott craven

    scott craven Well-Known Member

    That's the problem, unfair taxation drives the economy underground and promotes bartering and trade as payment.
    the higher the taxation the more it happens.
    If the tax was fair, people would pay it.
    more people paying, more revenue for the gov't.
     

Share This Page