BC moves to eliminate the tax that would now increase the deficit. In fact the B.C deficit is now tripled. The big loss is of course the 1.6 billion BC now has to give back to Ottawa. BC is still moving to eliminate the deficit by 2014. BC could have a much easier time going into surplus if they would have kept the tax that would create jobs (over 100,000 in the next ten years), and would increase revenue. It seems that the HST was good policy, but the Liberals in BC are crazy over popularity. Even though 45% of people were in favor of keeping the tax. I mean take a vote of the G.S.T and the federal government would be lucky to get close to these numbers. I mean there is only a slight win in this politically, because many people who want the H.S.T gone are guess what with the NDP! There isn't much political gain especially for something that would have done a lot of good for the province of BC. It seems like BC are moving a few steps behind so far this year. I hope these Liberals get there act together very soon.
In his latest quarterly report, Minister Kevin Falcon says scrapping the
HST will cost the province $2.3 billion over three years
"This includes $1.6 billion in 2011-12 associated with reimbursing the
federal HST transition funding and a more than $700 million loss from
lower tax revenue and increased spending over the three years ending
2013-14."
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I agree with what you are saying, but combining the PST and GST simplifies the tax code, and for many products they will be taxed at the same rate whether there is a P.S.T or HST. But most importantly you can't make up 2.3 billion by just taxing the rich.
ReplyDeletei love the idea, but rich people can't bring in enough revenue to pay off the 2.3 billion, but I agree we should have equality when it comes to tax burden. This tax change would help bringing in some revenue and help pay some of the loss of eliminating the sales tax.
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