THE VANCOUVER SUN
Families at risk by returning to old PST-GST
June 30, 2011
Page A15
By Stockwell Day
With the harmonized sales tax referendum decision now just weeks away, British Columbians are faced with a unique and historic decision, a choice of whether they want to pay less tax or more tax.
It is a choice that will affect every family, business and bank account across the province, and represents one of the most important public decisions in the province's recent history. The ballot question is this: Do you want to extinguish the HST (now 12 per cent, but scheduled to be reduced to 11 per cent in 2012 and 10 per cent by 2014) or return to the previous 12-per-cent double tax system that included a provincial sales tax plus the federal goods and services tax?
On the surface, the answer may seem simple enough: Keep the HST and pay less tax within three years, or bring back the PST-GST and pay more tax. It's a decision that will shape the future of our province for decades to come.
It would be easy for me to simply stay out of the referendum debate. After all, the move to a harmonized sales tax was a provincial initiative, not a federal one. Added to that is the anger felt by many about the way the provincial government went about implementing the HST.
Former premier Gordon Campbell, who was a key player in turning B.C.'s economy around several years ago, is the first person to admit that the public communication side of the HST was not conducted well.
So you may ask, why am I wading into the discussion?
Many people have been asking for my perspective on the HST, especially as a former Alberta finance minister who lowered taxes. I decided that the HST issue is far too important to stay silent on, especially with so many British Columbians angry about it.
I firmly believe that a decision of this importance should be based on cold, hard facts, not raw emotion.
The economic reality is this: Individuals and families will be better off by having the HST in place as recently amended by Premier Christy Clark.
The provincial government committed to and undertook a province-wide consultation. They listened to British Columbians and acknowledged their feedback in the form of a rate reduction to 10 per cent from the current 12 per cent.
These changes reflected the concerns of every family and business, and reinforced a provincial tax policy that makes B.C.'s economy stronger.
British Columbians need to understand the real ramifications of bringing back an old, antiquated tax system. There is too much at stake to risk voting for a return to the 12-percent PST-GST.
Bottom line: The HST benefits all British Columbians:
· The HST will drop two points to 10 per cent by 2014.
· The average B.C. family will save $120 more a year.
· A one-time, $175 transitional cheque will be given for each child under 18 in a family.
· Single seniors with incomes under $40,000 will receive a one-time, $175 transitional cheque, while senior couples with family incomes under $40,000 will receive $350.
· Rebate payments of up to $230 will be put into the hands of lower-income families.
· 24,400 new jobs are predicted to be created by the end of the decade.
Reverting back to the old PST-GST system would take away every one of these personal benefits. The move would hurt B.C.'s economy and leave less money in the wallets of every B.C. family.
Choosing a 12-per-cent tax system over a 10-per-cent tax system would hurt job growth and hinder the post-recession recovery of B.C.'s small businesses, the lifeblood of our economy, which make up 98 per cent of our business community and employ over one million people.
In a short amount of time, the new tax is also making B.C. more competitive, particularly in our resource sectors. It is allowing industries such as forestry, mining, manufacturing, tourism, construction and film to hire more employees and increase wages.
Under the PST, B.C. businesses paid tax on materials, equipment, energy and other goods and services. The PST was paid at every step of the way, cascading into higher prices for consumers.
Voting to return to the PST-GST would be a step backward that B.C. residents will have to bear for years to come.
It may mean we will have to repay $1.6 billion to the federal government in transition funds to implement the tax. This could mean cuts to social services such as health care and education, and/or other tax increases.
Thank you for giving this your thoughtful consideration, even though you may be one of the many who is upset with the situation.
As someone who loves this beautiful province, I simply want what is best for our future and for our children's future.
Whichever way you decide to vote, I hope this will also be your guiding motivation.
Stockwell Day has served as a federal and Alberta cabinet minister, president of the Treasury Board, leader of the Canadian Alliance and Member of Parliament for the B.C. riding of Okanagan-Coquihalla.
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Topic: The HST vote - making a decision (Read 125081 times)