HST debate heats up as vote nears

Does this trucker get equipment input credits from the HST? Yes. Does he work for a 'big business'? No.

Does this trucker get equipment input credits from the HST? Yes. Does he work for a 'big business'? No.

VICTORIA – My feedback on the harmonized sales tax debate is running hotter as taxpayers await Premier Christy Clark’s “bold” changes to the tax, due to be revealed any day.

In response to several angry readers, I will restate what I had hoped was obvious by now. All but the poorest consumers (myself included) are paying more tax under the HST than they were under the old provincial sales tax. The richest pay by far the most.

The “embedded” PST has been removed from many products, but evidence isn’t yet clear that this is being passed on to consumers, as economists predict. What is clear is that businesses are benefiting. What is still in dispute is what businesses are helped most.

Doug Donaldson, the NDP MLA for Stikine, objected to my statement last week that he was wrong about the HST beneficiaries being “Liberal donor corporations.” So again I will state the obvious, that forest, mining and other resource companies donate to the B.C. Liberals. (The NDP is on record as wanting to increase corporate income and capital taxes.)

Donaldson goes wrong when he specifies “corporations” rather than small business. Consider the forest industry.

Over the past 20 years the entire B.C. industry contracted out its harvesting operations, based on the well-tested principle that independent contractors are more efficient than inflexible, strike-prone major forest operators. That has been a painful process, not just economically but in terms of worker safety. But it’s exactly the kind of global-market shift that is being imposed on B.C.

As mentioned last week, you may not like that, but you shouldn’t believe those who try to pretend it’s not happening. And those big “corporations” had their major machinery and equipment exempted from sales tax long before the HST. It’s the small contractors who are now getting the benefit.

NDP finance critic Bruce Ralston notes that anyone can incorporate for tax purposes. It’s common for doctors, dentists and lawyers such as Ralston. But is it practical to expect the owner-operator of a logging truck to do that?

The independent truck drivers I’ve met are more concerned about paying their next fuel bill than hiring a lawyer to incorporate them. Increasingly it is immigrants who drive trucks, out-working the resident population to get ahead as immigrants have always had to do.

Speaking of immigrants, the situation in Vancouver real estate is worth noting. One of the things HST was supposed to severely depress was high-end new housing, now subject to the seven-per-cent provincial portion of HST once the prices exceeds $525,000.

What has happened? Offshore buyers are pushing costs out of the reach of B.C. residents who aspire to an ocean view. In many cases these are “satellite families,” taking advantage of our clean, stable, safe jurisdiction on the Pacific Rim. Mum may drive the kids to private school in a Range Rover, but the family reports little or no Canadian income. The only way these residents will pay a share is through consumption taxes.

I have also argued that migration of retirees will dominate B.C.’s population growth in the coming years. This is another group that reports less income but has significant consumption.

A recent BC Stats study shows that I overstated the impact of retirees. Since 1961, only seven per cent of migrants to B.C. have been 65 or older.

Younger people are coming here to work, and increasingly they will be self-employed or in small business.

The NDP supports lowering small business income tax to zero. They should also support the HST.

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

twitter.com/tomfletcherbc

Just Posted

Greater father involvement in the home leads to improved childhood development and increased marital satisfaction, says expert. (Black Press Media file photo)
University of Victoria researcher finds lack of father involvement a drag on gender equality

Working women still taking on most child and household duties in Canada

New COVID-19 cases on Vancouver Island by local health area for the week of June 6-12. (B.C. Centre for Disease Control image)
New COVID-19 cases up on Island, but health officials say trends going right way

There were 22 new COVID-19 cases in Greater Victoria last week after just four the week before

Emergency health services treated a person after they were blocking traffic at the intersection of Fort and Douglas Streets on June 17. (Evert Lindquist/ News Staff)
Victoria intersection traffic returns to normal after protester blocked roadway

A person in a motorized wheelchair was blocking the intersection at Fort and Douglas Streets

Eric White’s roadside farm stand in Metchosin sits stocked with produce. (Photo courtesy of Eric White)
Fledgling Metchosin farmer frustrated by thefts from stand

Eric White said every dollar made at the roadside helps sustain his farm

Saanich police took a suspect into custody after a store employee on Cedar Hill Cross Road was assaulted Wednesday afternoon. (Black Press Media file photo)
Employee assaulted at Saanich store after asking suspected shoplifters to leave

June 16 incident saw worker taken to hospital with non-life-threatening injuries

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

(Black Press Media file photo)
POLL: When was the last time you visited the mainland?

The films are again lighting the screens at local theatres, the wine… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of June 15

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

The Co-op gas station at Whiskey Creek is burning after a camper van exploded while refueling just before 4 p.m. on Thursday, June 17, 2021. (FACEBOOK PHOTO)
Exploding camper van torches Highway 4 gas station between Qualicum Beach and Port Alberni

Highway traffic blocked after Whiskey Creek gas station erupts into flames

Helen Austin performing with Trent Freeman at the 2018 Vancouver Island MusicFest. Austin is one of the many performers listed for the 2021 event.
Vancouver Island MusicFest goes virtual for 2021

Black Press to stream 25 hours of programming July 9-11

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

Most Read