HST? May Be Your Friend

It may be your friend, but not mine. I’m listening to BC’s Minister Colin Hansen giving a good impression of double-speak right now on the radio. When one woman asked him exactly how she was going to save if the industries like mining were for the HST he said how much savings would be passed on to other businesses. Wow. So that’s how that woman is going to save. Just like we all saved and saw prices drop when the GST was put in. Nope. We didn’t.

He likes to say that they’re removing the PST (7%) and putting on the HST (12%), and tries to make it sound like they’re doing us a favor. Food that is now exempt from GST will continue to be but he doesn’t say that food now being taxed (cookies, chips, chocolate bars; those items considered “luxury” items and therefore not for the poor to afford) will now have 12% instead of 5%. A $1 chocolate bar would have cost you $1.05 but will now cost $1.12. Not much but when you start adding up other items it will get costly.

Like buying a new home. Like going to the gym. I now will have to pay both GST and PST (oops sorry, that means I’m only paying HST not two taxes but it equals two taxes) to go to the no-frills community gym.

For restaurants, the minister said a provincial consumption tax is charged in other restaurants but BC and Saskatchewan. So, what does this mean? We’re not being taxed enough so should get more taxes and that justifies the HST. When the GST came in it was supposed to cancel all those other taxes but there has always been the alcohol tax at 10% on your restaurant bill, plus that 7% PST. Or was it GST. Has anyone been able to track how many ways our government taxes us?

The provincial government that Hansen represents plans to be generous now with that new HST coming in onto the  restaurants. They’re so generous they’re lowering the alcohol tax from 10% to 7%; and don’t forget you’ll not be paying 5% on food now but 12%. Plus it’s unclear if we’re paying 12% on alcohol plus 7%. If so, that nearly 20% on top of the cost of alcohol. But let’s say it’s just the one tax on booze and the one super, mega lumped together tax on food. What we have is 12% plus 7% so it’s still 19% plus 15% tips added so you’re looking at a minimum of 34% on top of your dinner, making a bill of $50 going to cost you $17 for a total of $67. But that’s only if taxes aren’t doubled on the booze. If it is, then we’re looking at 19% tax on booze, plus 15% tax on food plus 15% tip on all of that. I wonder how many people are walking around with accountants in their pockets so that they can figure out how much they ow on a bill.

Though Hansen claimed it will affect very few things, and somehow could not name how we would have any savings, he did say that about 25% of British Columbians will get HST cheques that will equal what, $30 per person? I think? I hope I misheard because it will cost more than that in a couple of months. So that’s the low and “some” middle income people, as he said. But not everyone, not most of us.

Consider that every year we have to calculate our income tax and it’s taken off  of our paychecks so most people pay between 20-30% taxes on what they make. But that’s not enough so now we get to pay at least another 15% tax on things we buy. How will this immediately affect you and me? Good question. The government and Colin Hansen have couched so much in doublespeak that it’s not clear. But I can tell you that I’ll be hit the next time I buy a gym pass, when I go to a restaurant, should I buy a cake or a pie, or a new home. Will liquor in liquor stores go down if the alcohol tax is being lowered? I’m kind of doubting it.

I’d love to hear how we will save so much money. When did a tax ever give the working person more money? And I would love to know how they see this as generating new jobs, except for those counting the coffers for the government. And this coming from a government that hasn’t raised the minimum wage in 9 years, and has one of the lowest in the country.

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