The studies have revealed that average familes pay more than $350 per year with the HST and if you actually go out and buy some big items hit by the HST you are paying 7% more!! OUCH!
The study you are referencing is this one:
http://hstinbc.com/making_your_choice/independent_panel/you,-your-family-and-sales-taxes -- and it was quoted in the TC here:
http://www.timescolonist.com/news/costing+average+family+annually/4726693/story.html
It was written and published before the announcement that the HST will be reduced to 10%. It's the reduction to 10% that has finally swung my vote -- call it a bribe if you will, but I'm in.
With the tax reduced to 10%, the average consumer in every tax bracket measured PAYS LESS TAX, and there is a benefit of $120. See here:
http://www.hstinbc.ca/making_your_choice/the_new_hst/
We are payiing the 1.3 billion that big corporations get a break on under the HST. Well, this is partially true -- but once again, does not take into account that under the new tax law, that business taxes were actually increased by 2%. However, the big benefit to BC Business is that they no longer pay PST on products and services that they have to purchase in order to product their goods and services. Lets say for example you make fishing lures -- in the past you had to pay 7% PST on the raw metal from your local shop. The local metal shop had to pay 7% PST from his Wholesaler, and the Wholesaler had to pay 7% PST from the foundry. All of that tax paid at every step used to be embedded into your cost of making the fishing lure. Under the HST, none of the intermediary steps charge the HST so the net result is that you pay LESS for your raw materials, it therefore costs you less to make your lures. You can either choose to keep this additional cost savings as profit, or, pass the savings along to your customers. The reality for BC Business is that it makes us more cost competitive in a global market, increases our sales and profits which in turn make for more jobs for BC businesses -- which in the long run means we all make more money.
And who can believe that the HST will be reduced? Trust the Liberals? I don't think so. This is the easiest vote ever. ADIOS HST! Yep, valid point -- and I believe it's the key point that most people in BC are having a hard time putting to rest.
BC Liberals = HST
HST = Evil
therefore BC Liberals = Evil
However, voting away the HST does not remove the BC Liberals. All it does is costs ALL OF US more money, and takes away the cost competitiveness of BC businesses. It's kind of like shooting a Halibut with a .45 while it's flopping on the deck of your boat -- yes, it certainly kills the halibut, but likely also sinks your boat. You'll get your chance to remove the BC Liberal Party -- likely this fall (whether the HST is in place or not). We can then argue all you want about the merits and tax benefits putting the NDP back in to place will bring your pocketbook!!!
Finally, none of us know for sure that the tax will be reduced to 10% by 2014. The bill was made into LAW a few weeks back, so we can be comfortable it's more than just a promise -- and yes, the law can be removed and the tax increased. However, I believe the odds of the tax being increased or decreased are the same regardless of the party in power. If we are running a huge deficit, it will be increased. If we're running a surplus -- well, it likely won't be decreased further, but at least they can stay on plan to lower it to 10%.
