‘People’s victory’ means pain ahead

NDP leader Adrian Dix couldn’t contain his glee at the result of the harmonized sales tax referendum. Bill Vander Zalm is thrilled too, still apparently unaware that he has taken money away from the poor and given it back to his fellow wealthy B.C. residents.

Bill Vander Zalm hops in his Mercedes S550 after his victory news conference in Vancouver Friday. He probably still believes he has helped the poor.

VICTORIA – NDP leader Adrian Dix couldn’t contain his glee at the result of the harmonized sales tax referendum.

He seemed positively giddy that the provincial budget will forgo $3 billion in revenue over the next few years, and clearly relishes the prospect of getting back to the legislature in October to resume his demands for more spending in every ministry of the B.C. government.

He can start soon, standing in passionate solidarity with B.C.’s 40,000 public school teachers as they strike to press their demands for huge increases in salary and benefits that already exceed what most private sector workers will ever see.

Bill Vander Zalm was thrilled too, beaming that famous smile as he climbed in his long black Mercedes to resume his comfortable retirement. He never expected to be able to leave the province in a mess one more time, but fate has been kind to him. He probably still believes he has helped the poor, as he claimed in his nonsensical rants against the HST.

This is the “people’s victory” that Dix crowed about. B.C. and the rest of the country are entering a perilous time where retired people outnumber the young and pension plans, private and public, grow increasingly fragile. And in classic baby-boomer style, our political response is self-centred and unrealistic.

An efficient tax system that ends the advantage given to services over goods, while raising revenue to lift up the poorest people, is now a dirty word. Any kind of meaningful tax reform will be politically radioactive for years to come.

Resource industries, the movie business and other private sector job generators can now plan for a significant B.C. disadvantage in 2013. Ontario can celebrate. Meanwhile, demand for government services to take care of the great grey blob that is my generation can only soar.

It’s not just old people outnumbering the young. I mentioned a while back that Canada has already passed another significant milestone. Statistics Canada reported in May on the people fortunate enough to have employer-supported pension plans in addition to government pension. And it turns out that 2010 was the first year in the country’s history where more public sector workers enjoyed this benefit than private sector workers.

Author Mark Steyn talks about this problem in relation to the troubles in Europe. He refers to the “Government Party,” which is the ever-growing public sector, and the “Dependency Party,” which is everyone on pensions and welfare. When those two “parties” constitute a majority, they can force the government to satisfy their demands without regard to economic reality.

This is what has happened in Greece. It is very close to happening in other European countries, and today B.C. is a step closer to it.

When the verdict came in on the HST referendum, Finance Minister Kevin Falcon talked about going around to consult the public on how to reinstate the provincial sales tax. He vowed that B.C. will somehow still balance its budget in two years, and seemed to leave the door open to some minor modifications of the sales tax system.

Premier Christy Clark quickly shut that door. It would be “disrespectful” to do anything other than bring back the post-war PST in all its rustic beauty, with the little boutique exemptions like bicycles and Toyota Priuses that have been attached by politicians over the years.

Self-employed business people can now look forward to collecting and remitting two separate taxes again.

There will be a cost to this “people’s victory.” It will involve reducing public services, raising taxes or both.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalnews.com

twitter.com/tomfletcherbc

Just Posted

Port Alice trailer goes up in flames in the early morning hours

The North Island Gazette will continue to update the story with more details as it progresses.

1041 customers without power due to outages in Northern Vancouver Island

Keep following the North Island Gazette for more on the power outages.

VIDEO: Sports Talk with Tyson: North Island Bantam Eagles are ready for provincials

Sports Talk with Tyson is back this week with an indepth look at the North Island Bantam Eagles.

Ferry connecting Port Hardy and Bella Coola expected to set sail this summer

Its first in-service route will sail in central coast waters on May 18, 2019.

Keep focus on helping Canadians at home, Trudeau tells MPs at start of meeting

Trudeau said the Liberals will offer Canadians hope amid issue like climate change and global tensions

Patriots make 3rd straight Super Bowl, beat Chiefs 37-31 in OT

New England will meet L.A. Rams in NFL title game

Pettersson returns to lead Canucks to 3-2 win over Red Wings

Vancouver’s super rookie has 2 points in first game back after knee injury

Support pours in for Vancouver Island couple whose home was destroyed by massive blaze

GoFundMe page reached $10,000 in one day for soon-to-be parents

Skaters stranded in Saint John, NB, amid storm on last day of championships

More than half of the flights out of the city’s airport were cancelled due to the weather

Call for tighter bail rules after Saudi sex-crime suspect vanishes

Mohammed Zuraibi Alzoabi was facing charges related to alleged sexual assault, criminal harassment, assault and forcible confinement of a woman

12 poisoned eagles found in Cowichan Valley

Improper disposal of euthanized animal suspected

Olympic softball qualifier to be held in B.C.

Tournament is to be held Aug. 25 to Sept. 1

B.C. resident creates global sport training program

The 20 hour course teaches the science and application of interval training at the university level

Most Read