HST Is Not Going Away
By Ben Meisner
The reason for the provincial government hoping to introduce the HST may be buried in the financial picture of the province.
During the election we were told that the deficit would be no larger than $400 million dollars. That was a pipe dream then as it is now. We are more likely to have a deficit of between 2 and 3 billion dollars.
So what is the province doing to try and shine a better light on their predictions? Well the Federal government will contribute $1.6 Billion towards making those figures look better if the province signs on. Reason enough to take the plunge? Of course it is.
That combined with more than three years to go to the next provincial election and a history that the voter’s memories are far shorter two years much less three, gives them ample reason.
There are other reasons of course; Gordon Campbell will not fight the next provincial election. Following the 2010 Olympics (and before the hangover by way of further deficits arrives) he will quit the post.
When you seek re election as he did, you don’t say that you won’t run in another election, that paints you as a lame duck Premier, and he wasn’t doing that.
So what have we? Well we have the HST, the province needs the money. Is it revenue neutral? No way. Will the savings that large companies make as a result of the method of applying the tax be passed onto the average BC resident? Not likely , but we will have more to say about that in a later comment.
Someone in the Liberal Cabinet will be called upon to pick up the pieces in the next provincial election. The speculation will begin shortly and no one wants to be first out of the gate.
In the meantime, buckle up, you will be paying more for your goods and services under the HST, that is a given.
I’m Meisner and that’s one man’s opinion.
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