Tuesday, August 11, 2009

HST backlash: A thoroughly botched tax introduction

Province provincial affairs columnist Michael Smyth

Now that the HST double-cross has triggered Premier Gordon Campbell's dizzying crash in the opinion polls, that doesn't mean his summer from hell is over and he can only go up from here.

Far from it. This is one political nightmare that could drag on for Campbell's Liberals through the fall, next year and beyond. The HST backlash — combined with other simmering scandals that could erupt at any moment — have plunked the Libs in a nasty political pressure-cooker.

This is not the way they planned it. I'm assured by government insiders that the Liberals knew Campbell's HST flip-flop would be highly controversial, but nobody in the brain trust predicted the kind of incendiary anger witnessed over the past few weeks.

The 85-per-cent public condemnation of the HST caught the government by surprise. And the weekend poll showing Campbell's Liberals plunging 12 points, and now badly trailing the NDP, has the political string-pullers in Victoria staring at their shoes and mumbling to themselves.

Why did the Liberals expect a different outcome? Because of what happened in Ontario.

When Premier Dalton McGuinty unveiled a 13-per-cent HST in March, his governing Liberals suffered only a mild dip in the polls and continued to lead their main Conservative rivals by a healthy 15-point margin.

That's despite the fact that the Ontario economy has been running on fumes and the McGuinty government has been plagued by a multimillion-dollar contracting scandal in its health ministry. The B.C. Liberals watched McGuinty's magic trick and figured they could pull the same HST rabbit out of a hat here. Bad mistake.

For one thing, McGuinty didn't promise during the last election that he would not bring in an HST in Ontario. Much of the anger in British Columbia is due to the Liberals' broken election promise, in addition to the brutal consumer tax grab itself.

Then there's the little matter of honesty, openness and consultation. McGuinty first floated an HST trial balloon back in January and then consulted with business and consumer groups, eventually bringing in a $1,000-per-family rebate to cushion the blow of the new tax.

What did we get in B.C.? No warning, no consultation, no rebates. Just a fait accompli rammed down the throats of taxpayers during the dog days of summer, when the Libs were hoping people weren't paying attention.

Well, they're paying attention now. I suspect HST opposition will grow during the year-long ramp-up to the official launch of the tax grab next July.

By that time, the Liberals' other festering political pimples might be ready to burst. Such as the B.C. Rail corruption trial and all its dirty laundry. Or a post-Olympics budget shock.

For Campbell's Liberals, it ain't getting any easier.

E-mail: msmyth@theprovince.com


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I have been a resident of Coldstream since 1976. I have had 15 years of experience on Council, 3 years as Mayor. As a current Councillor I am working to achieve fair water and sewer rates and to ensure that taxpayers get fair treatment. The current direction regarding water supply is unsustainable and I am doing all I can to get the most cost effective water supply possible.