In light of the effect the HST referendum could have on the budget and the financial state of the Province of British Columbia the referendum ballot should reflect the budget and financial realities inherent in a YES or a NO vote as set out in the independent panel’s report “HST or PST/GST? – IT’S YOUR DECISION” as the HST ballot below does.
I consider a love of reading to be the greatest gift my parents gave me. So, when I found out about the ‘Reading Buddies’ program at our local library, the opportunity to spend an hour a week sharing my love of reading and paying forward the gift of reading, I picked up an application.
While my mother gave me (and my siblings) the gift of reading, her alcoholism gave us the behaviour and thought patterns of children of alcoholism. I became a member of Alanon to deal with the profound negative effect growing up in an alcoholic household had on my life. The awareness of the profound negative effect growing up with alcoholism had, and would have continued to have if I had not found Alanon, is why I considered it important to volunteer when Alanon Sponsors were needed for our local Alateen group.
Being a dedicated swimmer led to meeting the male members of our local Special Olympics swim team as we shared a change room – they leaving practice and I arriving for the supper time length swim. When the team had a desperate need for volunteers……well, spending an extra 90 minutes in the water was not a real hard sacrifice for me to make.
While poverty may not permit me to financially support programs and organizations it has not prevented me from supporting programs and organizations in my community by volunteering. Even being homeless in Abbotsford, living in my car on the streets of Abbotsford did not prevent or interfere with my volunteering with the Special Olympic swim team.
No, it took BC government legislation to put an end to my volunteering.
Understand, I fully support the requirement for police checks for those working with youth or vulnerable individuals. Over the years I have had many police checks done .
When the province decided to bring in legislation to require police checks for all, rather than leaving the choice up to the individual organizations I felt it was only common sense. And since the organizations I volunteered with already required police checks, I foresaw no effect on me from legislating a police check as a requirement.
I do not know what had the government taking the sloppy route in drafting the legislation. It really doesn’t matter. What matters is that the government produced legislation that was seriously flawed.
When the legislation was introduced supporters of privacy and civil liberties pointed out to the government that the legislation contained an assault on both privacy and civil liberties of citizens. Mathematicians pointed out that statistical analysis showed a significant percentage of volunteers would be faced with the need to decide between violations/intrusions into their privacy, civil liberties and charter rights to get a police check or walking away from volunteering.
Which is the situation I found myself in and mulling over, meditating on and wrestling with this past week, after getting a call from the Abbotsford Police Department that they required my fingerprints in order to complete my Criminal Record Check. Never before, in over a decade of criminal record checks, has there been any problem.
Giving or being required to give the APD my fingerprints when I have done nothing wrong is a violation of my privacy, civil liberties and charter rights that I cannot countenance.
Last year I turned down an opportunity to attend (without any out of pocket cost to me) an interesting conference in the USA because of the privacy violations that go with flying into [or simply over] the USA. Even visiting my favourite used book store cannot tempt me into crossing the border into the USA. And Mr Harper’s cavalier selling out of Canadians privacy to the USA is among the top reasons on my ‘why I feel an uncontrollable need to kick Stephen Harper’s a** list’.
At a time when government cutbacks and funding cuts are making the services provided by volunteer organizations more and more vital, and at a time that many volunteer organizations cannot find the volunteers they need, the sloppy structure of the British Columbia Criminal Records Review Act is forcing volunteers to walk away from volunteering.
The sloppy drafting of BC’s British Columbia Criminal Records Review Act has added my name to its list of victims and has cost two local organizations a long time volunteer and denied another a new volunteer.
I have never had any problem with the need to provide a criminal record check and walking away from volunteering was a difficult and painful decision, that remains unsettling.
But I cannot, will not, allow the state (in this case BC) to violate my privacy, civil liberties and charter rights by forcing me to provide fingerprints, for the state’s convenience, in order to satisfy a piece of poorly drafted legislation.
You know, at one time the News media actually (I know I am showing my age) had a certain amount of factual information and balance in their reporting.
As the coverage of the release of the report the BC government asked an the independent panel to prepare to provide BC voters with the information needed to make a wise decision when casting their vote – yea or nay – on the HST referendum demonstrates neither the broadcast nor print media can be trusted to provide factual and balanced coverage of important issues.
Watching the coverage or reading the papers left one thinking the report had salvaged the BC Liberals and the HST.
Since this was not what I had expected from an independent panel I went to the internet to read the report and found that nothing could have been further from the reality of the report than the media coverage.
Indeed, the coverage provided by the media was so misleading the coverage, with its total disregard for reality, accuracy or the consequences of the coverage, borders on malfeasance.
The report was a thoughtful examination of the HST setting out the facts and realities of the HST and placing the HST in context vis-à-vis the budget realities of the BC government – a must read for those who will be voting in the HST referendum.
Indeed the report does such a fine job of setting out the budget realities faced by the province and government of BC, the report needs to form part of budget deliberations and discussions to ensure politicians and public have a solid understanding of the budget [revenues and spending] realities of the provinces finances.
You can read the report HST or PST/GST? – IT’S YOUR DECISION in its entirety or the excerpts (italicized) below which includes over 90% of the report itself, reformatted to this format.
We’ll admit — It’s been a struggle. Some of the facts about the HST and PST/GST are crystal clear. Other facts will take time to emerge. Tax policy is complex and it’s not always easy to arrive at black and white conclusions.
The process of preparing this report has shown us much of the debate over the HST and PST/GST remains filled with factually incorrect information. We believe that better information, including the good and the bad about each tax system, is critical for there to be a successful referendum – no matter the result.
Revenue from the sales tax equals the total income taxes paid by individuals. If B.C. eliminated the sales tax — whether it’s the HST or PST/GST — there would be a $5-billion to $6-billion hole in the $41-billion budget. To compensate the government would need to increase the deficit, raise other revenue or cut spending on services. Or do a combination of all three.
Spending on health care [currently 42% of the budget] in B.C. is growing more than twice as fast as the government’s revenue growth.
If governments are to adequately fund public services and avoid cutbacks, tax hikes or deficits that add to provincial debt [interest on debt is 6% of budget expenditures; increasing debt and/or increasing interest rates means more of the budget must be used to pay interest, decreasing the monies available to provide services], they must have reliable and robust sources of revenue.
Under the PST, much of the service economy went untaxed. Under the HST, most services are taxed. That means a broader tax base and a more stable source of revenue for government. One thing is clear— sales taxes are essential to the B.C. government’s revenue base.
“As a consumption tax the HST is efficient. There are no loopholes, exemptions for special interest groups or deductions.” Paul Mockler, A & A Trading Ltd.
British Columbian families pay an average of $350 more every year on routine expenditures under the HST. The more you spend, the more HST you, pay. The more you earn, the more you’re likely to spend. If your family is one of the 15 per cent of B.C. families that report income of less than $10,000 a year, you’re actually better off under the HST. All B.C. taxpayers’ HST costs are partially offset through income tax relief. 17% of your spending has an extra seven per cent sales tax; 29% of your spending is subject to the same total sales taxes as before, it has not gone up or down; 54% of your spending is not taxable under the HST or the PST/GST – nothing has changed.
To make a product or service, businesses pay for items like power, heat, rent and computers. Under the PST, businesses paid the seven per cent sales tax on those purchases. While you never saw it on your bill most of that PST was added onto the final price you paid at the cash register. Call it the invisible PST paid by you, the consumer.
Under the HST system that’s changed. Most businesses receive a full rebate on sales tax paid on items they buy to make a product or service. That means they no longer add the invisible PST to the final price they charge you. Businesses can pass on their HST rebates to you in the form of lower prices or use their savings to invest in new equipment and productivity.
“For B.C.’s businesses to remain competitive, a value-added sales tax, like the HST, is a necessity.” Institute of Chartered Accountants
Virtually all economic analysis finds the HST increases economic growth, productivity, wages and the quality of jobs. A move back to the PST/GST will likely have a negative impact on business and investor confidence because of uncertainty over tax policy. The panel’s commissioned analysis concludes the economy will get a bigger boost under the HST than it would under PST/GST. Under the HST, the size of the economy will be $2.5 billion larger in 2020 than it would have been with the PST/GST. That’s about a 1.1 per cent higher growth. Small and large businesses save at least $150 million in administrative costs because they now comply with one tax, not two.
“A reality that has seldom been mentioned in the HST debate is that the provincial government actually has relatively few policy levers available to attract investment, foster the growth of high-paying private sector jobs, and enhance B.C.’s competitiveness. The design of the consumption tax regime is one area where the province has the capacity to shape the economic environment in a positive way.” Business Council of British Columbia
The HST puts exporters on the same footing with the more than 140 other countries that have gone to value added sales taxes, such as the HST, to make their exports competitive in the global marketplace.
For the important small business sector the HST is a benefit as the HST removes the PST from the cost of production. That makes it cheaper to produce goods and services, helping overall sales and exports. The HST also makes bookkeeping simpler and cheaper for small business. Compliance with only one sales tax (HST) vs. two (PST and GST) is particularly important for small firms, which often don’t have the same administrative resources as larger companies.
Our consensus is the HST will be a net benefit to the economy. But don’t expect dramatic results overnight – it’s a tax that offers incremental benefits over time by: Making most businesses more competitive; Reducing administrative costs to businesses; Reducing the cost of producing goods and services; Creating more jobs.
Going back.
Going back to the PST will take 18-24months. The time is needed for rewriting federal-provincial tax laws and regulations, hiring back 300 tax collectors, rebuilding a provincial PST office and helping businesses readjust their accounting systems.
The first year of going back to the PST/ GST will result in the province losing the
$820 million in the first year, increasing to $893 million in the second year and would widen each year. Factoring in the saving the provincial budget would see a net revenue loss of $531 million in the first year and $645 million in the second. That trend would continue each year, meaning other revenues would need to be found or public services cut to avoid increasing future deficits.
Going back will be expensive. The province will probably have to repay Ottawa the $1.6 billion it received to transition to the HST. If the government borrowed $1.6 billion to repay Ottawa, it would cost $85 million a year in interest based on today’s interest rates. {Assuming that repealing the HST and the need to borrow $1.6 billion does not result in a change to BC’s credit rating and raise the interest rate BC can borrow at}
Note: one point I feel the report was not strong enough on is the negative effect repealing the HST will have on the province’s cost to borrow money. Lenders are repaid out of government revenues raised through taxes. I feel that a refusal to pay higher taxes while at the same time demanding more and more services – and thus rapid increases in debt, is going to have a significant effect on the cost to borrow money and the negative consequences flowing from increasing costs of debt servicing. Indeed, under those circumstances the province could begin to have trouble borrowing the money it needs as lenders become cautious about BC’s debt escalation.
And while it may not seem large compared to other costs the government will spend $35 million each year to run the PST office.
I am not a fan of the Federal (or BC) NDP because the party and its members have failed to demonstrate an acceptable degree of financial understanding to enable them to govern in a financially responsible manner; having said that, this may be the election to vote NDP.
Not as a party or policies I choose to support, but because in the current state of Canada’s electoral system – where voters are forced to vote not for a party and policies but against a party (or parties) and policies – the NDP look like the lesser of evils choice for the current federal election.
A truly sad state for a person who was raised a Progressive Conservative to find himself in. But ever since the Traitor demonstrated the worthlessness of his word and promises by selling out Progressive Conservatives, I have been a member – along with the majority of Canadian voters – of those who are without anyone to speak for or act in their best interests and are reduced to voting for the party that will do them the least harm.
Several months ago I told our local NDP candidate (Dave Murray) that until the Federal (and BC) NDP build a solid financially responsible wing in the party I did not see how I, with the importance I place on solid financial behaviours by government, could vote NDP – despite favouring socially balanced and progressive policies.
But… “Reality isn’t the way you wish things to be, or the way they appear to be, but the way they actually are.”
The primary reality regarding voting for the NDP in this election is that, even if the Harper Conservative’s fear mongering proved accurate as to the negative financial effects of the NDP party forming the next federal government came to pass, the NDP would still do far less damage to the finances of Canada than the financial behaviours and budget plans set out by Harper’s Conservatives.
High Irony is it not, that the financial fear mongering Conservatives are in reality the party to be feared vis-à-vis the financial damage they will do to Canada in pursuit of their ideology.
Factor in the damage the Harper Conservatives have done to date, and will continue to do, to Canada and Canadians in pursuit of their ideology and the need to repair the damage already done to Canada and what it means to be Canadian by the Harper Conservatives and voting NDP moves to the top of the least evil vote list.
I know, what about the Federal Liberals? They have failed to show the discipline and determination that had the Liberals (under Paul Martin’s tutelage) not only balance the budget but run surpluses and pay down the federal debt – the only government in recent decades that reduced the federal debt. More importantly…Dion then Ignatieff….raises serious questions about the judgment of the Liberal Party of Canada when it comes to leadership and the governing of Canada.
I do have a serious disagreement with Jack Layton. While I accept that the parties and their leaders will make promises using our own tax dollars to bribe voters into voting for them, Jack Layton’s promise to forgive the $1.6 billion owed to Ottawa should BC voters vote to repeal the HST is unacceptable behaviour from the leader of a national party. 1) Is he going to give $1.6 billion to every province? 2) it sets a disastrous precedent for the way provinces use funds transferred from the federal government – as in why should the provinces not allow the privatization of health care simply because they agreed not to in order to get federal health care dollars?
Fortunately for Mr. Layton his opponents, particularly Mr Harper, have numerous unacceptable behaviours for persons seeking to form the next federal government of Canada.
Fortunately for me my words to our local NDP candidate about voting for the NDP were (for me) soft and sweet as I face the prospect of eating those words and voting NDP.
Because I do not want to live under the Harper Government, in the Nation of Harper as Harper destroys what it is to be Canadian and what Canada is about.
I want to live under the Government of Canada, in the Nation of Canada as a Canadian, a true son of the True North strong and free, not some Harperized wannabe American.
I AM Canadian, I am proud of that; what Mr Harper is doing to Canada and Canadians is unacceptable to me and it is time to tell Harper that Canada is a nation for all Canadians, not just the wealthy privileged few – then send him and his ideology packing.
