Category Archives: Thoughts

HST – the cost of repealing

March 9, 2011 James W. Breckenridge Leave a comment

I do not know if Mr. Vander Zalm is feeble minded or so focused on beating and/or beating up on the BC Liberals that he does not care what the consequences for the province and citizens of BC are. But at this point in time arguing the question of whether Vander Zalm is a lackwit or a scoundrel is as trivial and wasteful as arguing 2 months or closer to 18 months to discontinue the HST and bring back the PST + GST tax systems.

The referendum on the HST is June 24, 2011. This means that should British Columbians vote to repeal the HST the province will not receive the final $475 million payment for becoming a HST province that is due from the federal government on July 1, 2011.

Now, to Mr. Vander Zalm the loss of $475 million of revenue may be inconsequential or nothing for the taxpayers of BC to be concerned about. However I consider this first consequence of repealing the HST and the cuts that will have to be made to health care and education to offset this loss a significant and major consequence.

The next consequence, should Mr. Vander Zalm actually prove to have a magic wand that would enable the federal and provincial governments to end the single tax HST and bring back the dual taxes of the PST + GST in one or two months time, is the loss of the $300 million extra dollars the HST would put in provincial coffers this year and the addition of the $50 million cost of collecting and administering the PST (a cost that under the HST is currently borne by the federal government).

Meaning an additional $350 million will have to be cut out of health care and education. Or the entire $825 (475 + 350) million could be offset by closing down the provincial court and prison systems.

Now, Mr. Vander Zalm may not consider a loss of revenue that would require shutting down the provincial court and jail system to offset to be a significant enough consequence to be concerned about in repealing the HST – personally I do.

In all honesty (I know, a novel concept in a political fight) I do not expect the $350 million per year loss of revenue + increased cost to have an effect before next year’s (2012 – 2013) budget. The need to replace the single HST form with two new (old) GST and PST forms, to procure and distribute the forms to all businesses in the province and to hire the staff to collect and administer the PST (remember the federal government is responsible for collecting the HST and remitting to BC their portion) plus the need of businesses to reprogram their cash registers/computers, to change accounting systems back to two separate taxes, to get the new forms….. There was good reason that the HST took all those months to implement.

Whether Mr. Vander Zalm is simply clueless, hasn’t bothered to give this matter any thought or would rather befuddle and distract the voters by arguing 2 versus 18 months to get rid of the HST and reinstate the PST + GST rather than face the multi-billion dollar effect repealing the HST will have on BC is a matter the reader will have to judge for themselves.

Although BC, should the result of the referendum be a HST repeal, will not receive the final payment of $475 million and thus not be liable for repayment of that amount BC will be liable for repaying the $1.1 Billion already received (and spent) for becoming a HST province.

Despite Mr. Vander Zalm’s airy dismissal of this debt the fact is that these funds were paid to BC as part of the HST agreement and that in reneging on the HST agreement the federal government is due repayment in full. Forget claims of ‘negotiation’.

The federal government is not about to set an unwelcome precedent for provinces taking their (the feds) money and reneging on agreements. The federal government will want repayment in full and since they can get their money back by simply reducing federal transfer payments to BC by $1.1 Billion Mr. Vander Zalm’s spurious claims of ‘negotiating’ or not having to repay the full $1.1 Billion are just so much Politician’s BS. The Province of BC will have to cut the $1.1 Billion out of budget spending because the feds will get their money back and there is nothing the province can do to prevent that.

Repealing the HST will impose a major financial indirect cost on the province of BC in the form of an increase in borrowing costs. Potentially a rather significant cost given the budget deficits BC is running and the increasing debt levels of the province of BC.

Repeal of the HST is a taxpayers revolt, a rollback of the tax increase effected by the switch to the HST and the fact that the provincial portion of the HST applies to more items than under the PST.

How are those who lend to the province repaid? Out of tax revenues.

BC is running large billion dollar deficits and taxpayers are refusing even a modest $300 million dollar tax rise to pay for provincial spending. Indeed, at the same time taxpayers are refusing to pay this modest tax increase they are demanding more healthcare and education spending.

Factor in the budget and financial chaos and damage the immediate loss of $475 million, the $300 million yearly reduction of revenue, the $50 million dollar cost of administering the PST and the $1.1 Billion dollar repayment to the federal government……and from the view of those with funds to loan, loaning BC money involves increased risk.

The perception of increased risk means an increased cost of borrowing. That the HST referendum is being held will increase BC’s cost of borrowing. Should the HST be repealed, a further premium will be added to the cost for BC to borrow.

Part of that premium will result from the perception that the BC government can no longer be counted on keep their agreements. And what that perception will cost businesses in BC, the government of BC and ultimately the taxpayers of BC only time will tell.

As I said, whether Bill Vander Zalm is a lackwit or a scoundrel is a rather trivial consideration at this moment, considering the devastation Vandr Zalm will have inflicted on the government and citizens of BC should he succeed in repealing the HST – once the consequences of repealing the HST come home to roost.

While there may be an element of truth to accusations that Premier-designate Christy Clark and Finance Minister Colin Hansen are fear-mongering (fear-mongering being a favourite tool of politicians) I have no doubt that Clark and Hansen are themselves (as is any British Columbian who understands the consequences of a HST repeal) afraid of the consequences of an HST repeal. Especially as they are the people who will be faced with dealing with the financial mess a repeal will bring about.

One final comment on this matter – Mr. Vander Zalm’s partners in crime. It does not matter whether the NDP’s support of repealing the HST signifies an abysmal lack of any comprehension of financial realities or a desperation to win the next election at any cost, no matter how devastating to the province and taxpayers. Either possibility disqualifies the NDP (without major changes in candidates and leadership) from being entrusted with

Consider, Federal, Municipal, Provincial

“I am a taxpayer and I’m entitled …

March 7, 2011 James W. Breckenridge Leave a comment

The television news report on Royal Columbian Hospital using Tim Hortons for emergency patients had an on camera interview with a daughter who’s mother was one of the patients in Tim Hortons who stated “how awful that you’ve been a taxpayer all of your life … that your end days are with that kind of quality of care … there is no excuse for that, I think they should be ashamed.”

I have heard, I suspect we have all heard – perhaps have stated ourselves – variations on the ‘I’m a taxpayer! What am I paying taxes for? I have paid taxes all my life……….

I had just spoken to a class at UFV on affordable housing, homelessness, addiction, mental illness, poverty and related social issues stating that these were not problems but consequences of both the way politics is practiced and the way though is practiced. More accurately about what we ‘know’ or what is ‘known’ or ‘common knowledge’ and how if we applied thought to these matters we would find or realize reality is markedly different from what is ‘known’.

When I heard the ‘been a taxpayer all my life’ statement I found myself examining the implications, the entitlement, contained in that statement. While the statement has the appearance or semblance of truth, when one carefully examines, carefully considers the statement it becomes clear that all it has is the appearance of truth.

The underlying fiscal reality for those who have paid taxes all their life is that what they are entitled to is CPP. The chart of Canada’s national debt below shows clearly that only those who retired prior to 1944 can make claims upon the federal government beyond CPP.

Year Federal Debt

Prior to WW II $0

1944 $ 8,000,000,000

1961-62 $ 14,825,000,000

1970-71 $ 20,293,000,000

1980-81 $ 91,948,000,000

1990-91 $377,656,000,000

1996-97 $562,881,000,000

2001-02 $511,946,000,000

2007-08 $457,637,000,000

2008-09 $463,710,000,000

2009-10 $519,100, 000,000

2010-11 $522,337, 000,000 (projected)

2011-12 $535,237, 000,000 (projected)

2012-13 $542,537, 000,000 (projected)

If you purchase something for $1,500 and you pay out $1500 it is yours as you have paid out the full price of your purchase and are entitled to benefit from your purchase.

If you buy the something for $1500 and only pay $1200 you still owe $300 that must be paid and until you pay the final $300 you are not entitled to your purchase.

Beginning in 1944 Canadian taxpayers have been paying only a portion of the price of their ‘purchases’ of federal government services, borrowing to cover the remaining cost of the federal services ‘purchased’, putting the balance on a federal credit card- a balance that remains to be paid, a balance that continues to grow.

So, while taxpayers have paid taxes all their lives they have failed to pay sufficient taxes to cover the cost of the federal government . Taxpayers have avoided paying the full tab by running deficits, adding the outstanding unpaid yearly balances to the federal debt.

Every Canadian man, woman or child has/owes their portion of the federal debt, the debt of the province they reside in and the debt of the municipality they live in.

So while Canadians may be entitled to the CPP they paid into, the only ones entitled to anything else from the federal, provincial or municipal governments are those who loaned money to these governmental bodies and are entitled to repayment of principal plus interest.

Receiving medical care in Tim Hortons is a consequence of the decisions taxpayers have made (spending on the Winter Olympic venues rather than hospitals), together with years of choosing not to pay the full cost of all the services they were receiving from government.

If Canadians don’t want to be receiving medical care in Tim Hortons or hospital hallways they need to make better choices, to be willing to make hard decisions, face fiscal realities, understand we cannot have everything we want ‘right now’ and be willing to pay the full cost of the services etc we want (receive) from federal, provincial and municipal governments.

If Canadians don’t change our behaviours, choices and decision making, the days when you got medical services in the Tim Hortons at Royal Columbian are going to be the ‘good old days’ of public health care.

Poverty

The Whole Tooth

January 12, 2011 James W. Breckenridge Leave a comment

Finally, I remembered!

I had been trying to remember since late August to contact the Dental Clinic at the Abbotsford Food Bank to make an appointment to have a small cavity taken care of before I have another tooth deteriorate to the point it needs to be extracted.

Poverty is hard on teeth. Bad teeth not only cause severe appearance problems, they also have health consequences; health consequences that can be life threatening and require hospitalization.

Before you dismiss ‘severe appearance problems’ consider the cost to both society and a gentleman I met while he was attending the Triangle Resources program. He had worked hard at getting sober and remaining sober and was going to Triangle in preparation for finding a job. His teeth were in such terrible condition that when he spoke, but especially when he smiled (which he did fairly often then), … his teeth were so ugly it was off putting.
Looking for a place to rent, looking for a job, his teeth gave the people he was meeting a terrible impression and he kept getting No – until his spirit was wounded to the point he slipped back into drug use and homelessness.

I have known those whose teeth worsen to the point they abscess and cause a blood infection. Those to whom this happens end up in hospital on IV antibiotics to fight the infection, some are so bad they need dental surgery.

One of the sick ironies of the income assistance system is that it easier to get help to get all your teeth pulled and dentures than it is to get access to dental care.

Suddenly finding yourself homeless and witnessing the pain and problems, the carnage, bad teeth cause … well you live in dread of having any dental problems – and if you did have dental problems you lived in pain until the problem reached the point of a health problem requiring hospitalization.
At least I lived in dread of having any dental problems.

Dread – until the dental clinic at the food bank opened and poverty stopped being a barrier to dental care.

I remember thinking ‘that is a good idea’ when Dave told me they would soon open a dental clinic at the Food Bank and to let people know. When an old filling caused a tooth to break my thinking about the dental clinic changed to ‘great idea, something desperately needed in this community, cannot open soon enough’. Funny the effect need can have on one’s opinion of something.

Fortunately the dentist was able to clean up and save that tooth.

I was not so fortunate with the next tooth to break around an old filling. There was no way to save the tooth and it had to be extracted. The extraction itself was not nearly as traumatic as the mental trauma of no longer having “all my teeth”. On the positive side was the fact I avoided a lot of pain, infection, illness and a hospital visit.

While they were taking X-rays of my teeth as part of evaluating what to do about the broken tooth they found one of my wisdom teeth was rotten and in need of extraction; they also found a small cavity in another tooth.

I agreed to come in on a Saturday so that dental students out from UBC could get some hands on, real world experience as a way for me to pay forward the care being given my teeth.

LOL – and real world experience they did get. That wisdom tooth had been in my mouth for decades and it did not want to leave. The upside was that they had administered the long lasting anaesthetic (and a goodly amount as well); the downside was watching as heavy steel tool after tool went into my mouth – and came out bloody, listening to the conversation/coaching on the best way to break the tooth into quarters, watching (feeling) the strain as they struggled to wrestle the first piece out.

Blackly humorous was watching/eavesdropping as the local dentist explained to the student about not prescribing pain medication to the clinics clientele (many of who have addiction problems). Hey, after over an hour in that chair … you either found the humour in the situation or wallow in feeling sorry for yourself.

The really fortunate thing is that the freezing lasted long enough to get home and get several doses of acetaminophen and ibuprofen before the freezing wore off.

During the summer I had the opportunity to get a second teeth cleaning. It was a long time in the chair and I (shudder) found myself wondering how long it would have been if there had not been a first cleaning (itself a long session).

Humans are strange. The threat of cavities and losing teeth lacked the motivational power that the thought of having to face a dental hygienist with teeth made dirtier because I did not honour their work by looking after my teeth. Thus motivated I brush daily and floss several times a week.

And as I brush/floss I wonder how many others are taking good care of their teeth because a dental hygienist donated their time to clean those teeth?

Since that cleaning in August and being told to book an appointment to have the small cavity taken care of while it is still a small cavity, I have been trying to remember to get in touch with the clinic on Monday. Monday since this is the one day a week the scheduler who books the appointments is in the office.

In a Duh! moment as I was entering the dental appointment into my phone’s calendar I realized that in order to have remembered to make an appointment in a more timely manner I should have put making an appointment into the phone’s calendar – sort of an appointment to make an appointment.

The fortunate thing for me on a personal basis is that I should be able to have this cavity taken care of before it costs me another tooth.

On the unfortunate side of things is that the dental professionals do not get to see the effect their time and skills has on the patients of the dental clinic.

Such as the gentleman speaking about how wonderful it was to eat without pain for the first time in years. Or those who were looking forward to getting dentures now that their dental issues had been addressed and they could get dentures. Or see how happy/proud they are when they get dentures and not only are they able to eat and chew more than soups and other soft foods but see, every time they look in a mirror, the improvement dentures make to their appearance.

The dental professionals don’t have people coming up to them, giving them a big smile, pointing to their teeth and saying ‘check this out’ after having (for many if not all) the first visit of their lives with a dental hygienist to clean their teeth. The dentists and hygienists don’t see the increase in people brushing their teeth or asking for toothpaste and/or a toothbrush so they can brush their teeth. See the effect on demeanour and self esteem that having more presentable teeth brings about.

They donate their time and do all this work but don’t get to hear their patients talking to each other about how great it is to have had a dental problem taken care of or to have had their teeth cleaned. Nor do they see their patients telling others with dental problems that they have to go to the dental clinic where, not only will their dental problems be taken care of but they will be treated like ‘real human beings.’

They donate their time and do all this work – and really don’t get a appreciation of the effect their efforts have on those who, without the donation of time and skills by this group of dental professionals, would be unable to get the dental care so badly needed. Nor do the professionals get a true understanding of how much their work is appreciated by their patients.

In speaking of those whose work at the dental clinic has such and effect on people’s lives I would be most remiss if I did not speak of Lala, Keeper of the Sanatorium, whose skill and knowledge keeps the clinic, with its diverse cast of dental professionals and patients functioning.

On behalf of all the patients I offer thanks for 2010 and wish all a Happy and Prosperous (and Skillful) 2011.

Hmmm, Municipal

Only in Abbotsford……

January 8, 2011 James W. Breckenridge Leave a comment

You know, when it reaches the point you have to paint, in a bright yellow colour, instructions so city employees do not pile items in a doorway or stand in the doorway when it is closing……it is time that city hiring criteria become based on ability, knowledge and at least a minimal level of intelligence rather than who you know and/or nepotism.

Either:

The water crisis is a LOT worse than city council acknowledges – a lot worse since taxpayers know it is worse (much worse?) than council will admit. At least one hopes it is a case of won’t admit and not another instance of head in the sand, have no clue about.

Or:

Someone needs to explain to council you keep plants green by watering them not by painting them green. Although…….not knowing plants require water, not painting. to stay green would serve to explain city council’s lackadaisical attitude towards the need to increase the supply of water available to water plants, fight fires or for drinking to sustain life.

Hmmm

Salutary end for 2010.

January 4, 2011 James W. Breckenridge Leave a comment

I am on occasion razzed (or take some flak) for ‘always being negative’. My reply is that it is not that I am negative but that politicians, government and bureaucracies demonstrate a profound capacity for accomplishing negative outcomes or actions and that where praise is due I bestow it.

Since there were several items that ended 2010 on an upbeat note I thought I would kick off 2011 with those items.

Swimming laps on a (almost) daily basis is a necessary part of my mental and physical wellness plan.

Which is why I give two big thumbs way up to the person (or persons) responsible for the Abbotsford parks and recreation program that will enable those of us who need to make frequent use of the recreation centre’s facilities for exercise and wellness to purchase a year pass even if our budgets do not enable us to pay for it in one large lump sum.

Excellent news to end 2010 on – Kudos and Thanks.

I found myself stopping at the Wave Pool on Clearbrook Road to snap a few pictures of the growing hole in the ground as construction of the supportive, affordable housing complex for women and children began.

With the growing need in Abbotsford for properly managed and healthy affordable housing the ground breaking for this project was a positive end to 2010.

On a negative note, and what would the end of 2010 be without a demonstration of politician/government/bureaucracy non-think?

I sent a Christmas card to a relative in Kent Institution in Agassiz and as I do with all personal correspondence used sealing wax and signet to sign the card. December 31, 2010 brought the now opened card back to me. The reason cited for the return has me pondering whether a major contributor to Abbotsford, BC and Canada being in such dire straits is that prolonged exposure to bureaucracy causes brain damage.

‘Unknown Substance’? Exactly how badly damaged does ones mental capacity have to be not to be able to recognize wax, especially wax that has been impressed with a signet? As Homer Simpson would say “Doh!”

The question of why they did not simply cut the offending Seal off and deliver the card to the addressee in time for Christmas comes to mind, but I suppose you really do not want someone who cannot recognize wax or a wax seal playing with scissors.

Still, all in all 2010 ended well – and should Santa have brought politicians, bureaucrats and prison authorities an abundant sized stocking stuffed with common sense, careful consideration, thoughtful decision making, sound judgment and appropriate priorities this trend could extend into 2011.

Advocate for the Homeless in Abbotsford, BC