In keeping with the tradition I laid out before in my other posts, I am going to share the reply I received from Colin Hansen to the same email I sent Gordon Campbell regarding the HST. I have no other comments, really, just the email and my reply which I have attached to the bottom of the post.
Dear Mr. Miller,
Thank you for your email regarding the proposed 12 per cent harmonized sales tax (HST) in British Columbia. I appreciate your concerns. Allow me to explain why the government has decided to take this important step.
Businesses in British Columbia currently pay an estimated $1.9 billion annually in PST on their business purchases, the cost of which is built into the price of their goods and services. This embedded PST makes our goods and services more expensive, both for B.C. consumers and in our export markets and reduces our competitiveness. As such, the PST on business inputs represents a serious drag on competitiveness, investment, productivity and job creation.
British Columbia has to sell its goods and services to the rest of the world to prosper and grow. To do so successfully we must compete with companies from more than 130 countries and five Canadian provinces which have shifted to a value-added tax like the HST which removes embedded taxes from their prices. Unless B.C. moves to an HST, all of these jurisdictions will have a competitive advantage over B.C. business.
Since 2001, the government has taken significant steps to improve the B.C. tax system. We have worked hard to reduce taxes for individuals and to improve the competitiveness of B.C. business through the reductions in personal and corporate income taxes and the elimination of corporate capital taxes.
Over the last few years, both federal Liberal and Federal Conservative governments have been urging provinces to harmonize their sales taxes with the HST to enhance the competitiveness of the national economy. In late May, in light of Ontario’s decision to move ahead with harmonization on July 1, 2010, we revisited the idea of harmonizing our tax system. It was only with the Ontario announcement that B.C. was given the flexibility to create a made-in-B.C. solution, one with a 12 per cent HST rate, the lowest in Canada. Given our need to remain competitive and the new flexibility to set our own lower HST rate we decided we had to act.
With a single HST tax rate, one substantially harmonized tax base, and one set of administrative rules instead of the duplication that currently exists with the PST, compliance costs for British Columbia businesses are expected to fall by about $150 million annually. When fully phased-in, British Columbia will also save about $30 million annually in administrative costs due to the fact that the federal government will administer the HST at no cost to the province. In addition to these benefits, British Columbia will also receive one-time funding of $1.6 billion from the federal government which will help maintain vital public services such as healthcare and education.
Governments are often accused of doing things because they are politically popular. I can assure you that proposing to harmonize the PST with the GST is not one of them. Nevertheless, we strongly believe it is the most important change we can make to ensure a strong and growing economy. Although there will be adjustments required by British Columbians in the short term, it is a decision which will pay dividends to all British Columbians over the long term.
Thank you for writing.
Sincerely,
Colin Hansen Minister of Finance and Deputy Premier
And my reply:
Mr Hansen,
I appreciate your email and your explanation. It is very similar to the email I received from the Boss.
I fully understand the benefits and reasons for this harmonization. Would the HST not put undue and unsupportable pressure on those on this side of the wealth gap, I would be very supportive.
The fact remains; all the added taxes to be shifted from business and Govt budgets to household budgets are simply going to help ease the screwups and overruns from the many projects your Govt has initiated, not to mention the fiasco that is the Olympics.
http://www.ipetitions.com/petition/stoptheHST
I encourage you to see the petition, created by myself and signed by over 1 700 at the time of my writing. We are not partisans, simply concerned and BROKE citizens. Include extra provisions to ensure small business competitiveness for those businesses who do not currently charge PST. Exempt restaurants from this increase.
Tear up the restrictive, Ottawa-dictated terms of this HST and draw up some favourable to British Columbians. While you are at it, how about consulting us on any measure that decreases our ability to house and feed our families?
Good luck in your political career, Mr. Hansen.
Russell
In regards to the petition, we have had a fantastic result there. Nearly 1 800 as I go to bed tonight, and we are growing at crazy rates: nearly 200 a day! Please forward that around to friends and family members. I have been writing to local papers to highlight the fact that this is really a grassroots movement and not just another BC NDP agitation as the media is making it out to be.
Make sure that you write letters to the editors of your local papers, and if you feel inclined, add this petition URL to the end of them. If we keep directing people to the BC NDP, this will just become another fart in the party vs party game. If we can present a substantial number of non-partisan, non-agendad signatures to the Legislature or to Mr. Campbell and Mr. Hansen, we can really make some waves!
Keep up the great work everyone!