The newly proposed HST, which will result in a harmonized sales tax of 12 per cent as of July 1, 2010. Among others, the proposed HST will affect the buying public. Consumers will have to pay a higher tax on new houses, a higher tax on renovations, and a higher tax on REALTORS’® fees and other real estate related fees like notary services, home inspections and appraisals. In other words, the HST will result in a significant increase in cost to the real estate buying public.
The HST will remove more than $2 billion in costs for businesses. It will also mean consumers will be paying an additional 7% for goods and services previously exempted from PST. The only bright side if any, harmonizing the sales tax system simplifies our overly complicated tax system. So Gordan Campbell decided that the HST eliminates the PST on business inputs, things like machinery, equipment, and supplies, and that will make B.C. a more competitive place to invest. That will attract new investment and help make existing businesses more competitive and productive. That will boost the provincial economy over time. Lower business costs and more productive companies should eventually lower prices to consumers and mean more jobs and higher wages.
Now my problem with this new regulation is simply one of timing. We are undergoing one of the worst times economically and recovery not certain. Is this really the right time to be throwing in higher taxes? Ultimately, taxes are paid by people, not businesses -- business taxes are hidden in the cost of products. Even if this reform creates a more transparent tax system and make the government more accountable to the public, it is hard to imagine the Canadian public being at all appreciative of bearing the higher costs of living. I don't even want to begin pointing fingers on how tax-payers money is being wasted and misused. If you need a clue, Winter Olympics is coming.
No comments:
Post a Comment