Thursday, July 23, 2009

Rolling the GST and PST into one tax

Gordon Campbell and Colin Hansen left a lot of questions with the announcement of a Harmonized Sales Tax that would - mostly - combine the GST and PST into one 12-per-cent tax.
It's the kind of big change that could have been debated during the election campaign, except it wasn't on the radar for him three months ago, Campbell said. (Which raises questions about how well the details have been thought through.)
It also could have been useful to invite public comments on such a sweeping tax change.
There are benefits and drawbacks, which I'll write about once there is a little more information.
For now, there are more questions. For example, the premier says the change will reduce sales taxes for business by about $1.9 billion.
And he says the change overall will be - more or less - revenue neutral.
So who is going to pay $1.9 billion more to make up for the cut for business?
More to come. . .

4 comments:

Anonymous said...

For example, the premier says the change will reduce sales taxes for business by about $1.9 billion.
And he says the change overall will be - more or less - revenue neutral.
So who is going to pay $1.9 billion more to make up for the cut for business?

Duh- people, not corprate entities.

Norman Farrell said...

Hint: If you buy anything for your own use, look in the mirror to see who will pay extra.

This is good news though for the private power producers or other companies that are machinery intensive. For example, $10 million in production equipment now attracts $70,000 PST that will go away. So, if you are an employer thinking of automating, it is good news. EI, CPP and medical premiums are soon to rise so employee keep getting more expensive. Now machinery costs will reduce. So might employment opportunities.

DPL said...

another one og Saint Gordo's visions developed with little real thinking of just who it will hurt.

Gazetteer said...

Rolling the GST and PST into one tax....gives us....

What?

The 'HST'!

Golly-gee.

Does this mean that Mr. Campbell has actually achieved the unthinkable and resurrected the good Docktor?

_____

Hate to be so cynical, but I can't help but think that a significant driver in this change right here, right now just might be the fact that it allows Big Steve-O to ride to little Gordo's rescue with a one time $1.6 billion bailout that will bring the latter's deficit down to, what, exactly....?

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