By David Schreck, Yesterday, TheTyee.ca
Premier Campbell and Finance Minister Colin Hansen admit that their harmonized sales tax (HST) shifts $1.9 billion in tax from businesses to B.C. families. That's what it means when they say the tax saves businesses $1.9 billion per year while keeping the government revenue-neutral; in other words, you pay more to make up for what businesses will save. You will do that by paying a 12 per cent HST on almost everything that currently attracts only a 5 per cent GST (children's clothing, gasoline and diesel fuel are exceptions).
A shift of $1.9 billion per year from businesses to B.C. families makes the HST the biggest tax shift in B.C. history.
Campbell's radical 2001 tax cuts cost $1.5 billion with just 8,000 people receiving 14 per cent of the benefits. His 2002 50 per cent increase in MSP premiums cost B.C. families about $450 million per year. It is hard to find anything that comes close to the $1.9 billion per year HST tax shift. Dividing that by B.C.'s population of 4.4 million produces an average tax shift of $428 for each person, infant to senior; it is $1,714 for a family of four. Of course all families are not equal. As a proportion of their income, high-income families will devote less to paying the HST than middle income families, so the HST is regressive. (To read the rest of the story go to TheTyee.ca).
Premier Campbell and Finance Minister Colin Hansen admit that their harmonized sales tax (HST) shifts $1.9 billion in tax from businesses to B.C. families. That's what it means when they say the tax saves businesses $1.9 billion per year while keeping the government revenue-neutral; in other words, you pay more to make up for what businesses will save. You will do that by paying a 12 per cent HST on almost everything that currently attracts only a 5 per cent GST (children's clothing, gasoline and diesel fuel are exceptions).
A shift of $1.9 billion per year from businesses to B.C. families makes the HST the biggest tax shift in B.C. history.
Campbell's radical 2001 tax cuts cost $1.5 billion with just 8,000 people receiving 14 per cent of the benefits. His 2002 50 per cent increase in MSP premiums cost B.C. families about $450 million per year. It is hard to find anything that comes close to the $1.9 billion per year HST tax shift. Dividing that by B.C.'s population of 4.4 million produces an average tax shift of $428 for each person, infant to senior; it is $1,714 for a family of four. Of course all families are not equal. As a proportion of their income, high-income families will devote less to paying the HST than middle income families, so the HST is regressive. (To read the rest of the story go to TheTyee.ca).
**************************************************************
No comments:
Post a Comment