Selling HST to the ‘me’ generation

VICTORIA – Even if all you care about is your own wallet, the harmonized sales tax just became an offer you shouldn’t refuse.

Premier Christy Clark promised a “bold” fix for the HST, and she delivered. For months I have been arguing that the only way to overcome the wave of rejection caused by the panicked introduction of the HST is to offer a rate cut. I expected one per cent.

Now if you vote to keep it, a second one-per-cent reduction will be largely financed by reversing some of the B.C. Liberals’ business tax cuts of recent years. It not only sweetens the deal for consumers, it’s great politics.

First, let’s look at it from a selfish, short-term perspective, the way some readers loudly remind me they view the world. If you vote next month to go back to the provincial sales tax, the 12-per-cent PST-GST on goods that you probably didn’t notice before will continue. If you have kids under 18 or are a senior living on less than $40,000 a year, you will be saying no to a $175-per-person bonus cheque.

If you only care about yourself, you won’t care about the loss of HST credits to the poorest people in B.C. You won’t care about the province repaying Ottawa’s transition fund, or rebuilding a B.C. sales tax department to force business to convert their billing systems again. You won’t care about the competitive advantage given to Ontario, unless it costs you your job.

When the B.C. government of the day has to cut services to pay for this disastrous reversal, you’ll denounce them for doing what you told them to do. You will get the government you deserve, which may include a PST extended to restaurant meals or haircuts, because the money has to come from somewhere.

When Clark’s HST “fix” was unveiled, it was the NDP’s turn to panic. They have painted themselves into a corner, and now face the prospect of arguing for a return to an archaic sales tax with a higher rate.

And once again, Bill Vander Zalm and Chris Delaney tour B.C. in their Fight HST conspiracy clown car, refueled by $250,000 of public funds to campaign in the referendum.

Their campaign of fear and ignorance is encountering heavy resistance at university and college campuses, however, as tax experts fact-check their claims on the spot.  (They’ve added “rallies” in an effort to keep fear alive.)

Delaney still raves about Europe being the cause of all this alleged human misery with their insidious Value Added Tax. Vander Zalm continues to mutter about a plot to establish world government through carbon taxes and the HST.

It would be nice if the NDP-Fight HST crowd were concerned about the wave of retiring baby boomers that is starting to wash across the country. But they’re not.

There are changes happening now in the B.C. economy that 1960s socialism and 1980s populism are not equipped to handle. The living standard of our children is going to be determined by how we deal with our aging, globalizing population, and this is one reason to understand a shift to consumption taxes.

Fourteen months ago I wrote that more U.S. states are joining Washington, Hawaii and others with sales taxes on services as well as goods. Robert Kleine, treasurer for Michigan, explained it this way:

“The basic thing is that we need to update our tax structure. We’ve got a 20th-century tax structure based on a different sort of economy. The tax base doesn’t grow as the economy grows.”

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

www.twitter.com/tomfletcherbc

Just Posted

PRACC Chair Fred Robertson happy with how windmill blade display turned out

“Rotary really stepped up, which was excellent.”

Island Foods renovates bottle depot and cans old bottle return system

“I don’t want people to spend the whole day here,” said Angela Taylor on Port McNeill’s bottle depot.

Yukon man facing new attempted murder charge in Port Alice exploding mail case

Leon Nepper, 73, is now facing one charge each of aggravated assault and attempted murder

Seeing double, the trials and tribulations of twins

BIG READ: Three Vancouver Island mothers share their experiences with multiple births

Sointula Resource Centre to hold fundraising play

The play will “grab people’s attention” says Stephanie Rockman.

Conservation officer frees B.C. deer from flotation gear mishap

BC Conservation Officer Service is reminding residents to keep backyards clear of entanglements

Lions earn stunning 35-32 OT win over Ticats

Epic comeback lifts B.C. past Hamilton in CFL thriller

Czarnik nets 3 as Flames dump Canucks 5-2

Calgary picks up exhibition win over Vancouver

Ottawa to name new ambassador for women, peace and security, Freeland says

Chrystia Freeland also confirmed Canada would spend about $25 million to fund number of initiatives

‘A little bright spot:’ Ottawa residents rescue dog trapped beneath rubble

Freelance journalist says rescue of a dog trapped under rubble was happy ending amid chaos in Ottawa

B.C. deaf community wants different sign languages on federal accessibility act

Advocates also want Indigenous Sign Language to be recognized on the Indigenous Language Act

VIDEO: B.C.-born firefighter remembered by MP in emotional speech

Family asks first responders to look after one another in wake of suicide, growing concerns of PTSD

Airline has ‘close call’ with drone while en route to B.C. airport

Jazz Aviation reported the drone sighting near Vancouver to the RCMP and Transport Canada

Tragic accident claims life of B.C. toddler

Fundraising effort has been created to help mom and family

Most Read