The Canadian Taxpayers Federation (CTF) has crunched the numbers and the changes flowing from BC's move to the HST are now truly revenue neutral. BC Premier Gordon Campbell's move to cut taxes on income below $73,000 by 15% will ensure that families projected to take a hit from HST will either come out ahead or break even.

Economists have supported the HST for its efficiencies in the economy. Businesses have supported the HST for its simplification. The CTF was hesitant to support the HST because it was a net tax increase on most families, and the way in which it was thrust on voters without discussion during an election or a referendum.

With these taxes cuts, the CTF's first concern has been addressed. Attention must now be turned to the second. With a referendum scheduled to decide the fate of the HST next year, no one will be able to claim that it is a tax-grab. Rather, there is still legitimate anger about the way in which the HST was thrust on voters. A more positive channel for this anger would be to demand from politicians a Taxpayer Protection Act modeled on what Ontario had; that is, before Dalton McGunity gutted it. This would require a refferendum every time a government wishes shift or raise taxes unless it has a clear mandate to do so in an election.

Premier Campbell has now done what he should have done the day the HST was introduced: make it revenue neutral or positive for families. The only outstanding issue now the timing of the day he first introduced it.

By: Derek Fildebrandt
Posted: October 29, 2010
Topic: British Columbia

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