The Atlantic provinces have long had HST, and it looks like Ontario and BC are doing this together now.
I am not against the principles of the HST, and I certainly see how it can simplify matters for businesses. The problem is, improvements in business efficiency cannot be had at the expense of the poor and those who are in need. That is simply not right.
In the absence of public outrage and pressure, the Liberal government will likely just let the scheme run its own natural course, meaning that the poor will suffer the heaviest blow as a result of an effective 7% sales tax increase. With enough public backlash, I suspect the Liberal government will roll out some sort of rip off scheme where tax payers will be asked to retain copies of all their sales receipts and re-claim some of this sales tax back from the provincial government when filing their annual income taxes. Naturally, this will be administrative nightmare, and the Liberal government knows that
1) a large number of people, especially the poor and under-privileged, will not bother to do this, therefore further marginalizing themselves
2) those who do keep track will likely miss out on a least a port of the receipts, meaning that the provincial government will still not need to remit a sizable portion of these tax dollars back into the pockets of BC residents
As Elan was saying, NDP is useless and the Liberals are greedy. Which of these two apples is less rotten?
-Lik |