Hansen Speaks Up on HST
By 250 News
Saturday, September 19, 2009 03:13 PM
Prince George, B.C.-Hot off the heels of the protests in B.C. against the HST, Provincial Finance Minister Colin Hansen held two media sessions. One was live in Vancouver, the other a conference call with media around the province, and the HST was the subject.
Hansen maintains the HST is the single best thing the province could do to stimulate the economy. He says claims that seniors will be unfairly burdened by the tax are not true.
Hansen says as he has travelled around the province the anger over the HST has dissipated as people learn more about it, and suggests the furor would have been greatly diminished had the Province been able to have enough time to communicate the benefits. Instead, he says B.C. was put on a tight time frame so it could match up with the implementation of the HST in Ontario. To have waited would have meant losing a window of opportunity to stimulate the economy.
The Minister’s comments followed the release of benefits of the HST including :
* Studies in Atlantic Canada show that before-tax prices went down, while per capita investment went up over 11 per cent after the HST was introduced.
* The HST eliminates embedded taxes along the "value chain" and replaces itwith a single tax.
* At 12 per cent, B.C. will have the lowest rate of HST in Canada.
* Six of the 10 provinces have, or are moving to, a value-added tax (VAT) -with B.C. as the seventh, that would cover over 90 per cent of Canada's population.
* Over 130 countries, including 29 of 30 OECD countries, have moved to VATs.
* The HST will reduce B.C.'s Marginal Effective Tax Rate by 40 per cent(below ON and AB).
* The overall tax burden in B.C. will remain the 2nd lowest in Canada.
* Business organizations representing more than one million workers in British Columbia have come out in support of the HST.
* Low income individuals and families will receive the BC HST credit of $230 per family member. About 1.1 million British Columbians will benefit from the HST credit.
* Consumers will not pay the provincial portion of the HST on residentialenergy including oil, electricity, natural gas, and propane used to heat or power homes.
* Consumers will also not pay HST on many essential items such as residential rent and basic groceries.
In conclusion the Minister urges people to visit the B.C. government website to find out more about the HST and why its good policy for B.C. “There is good information available to the public and we are adding to it every day so people have access to good information.”
As for the protests, Hansen says he welcomes them, “ I think its great that people are engaged in their community and express their opinion on public policy but I also urge them to make sure they absorb the information that’s available.”
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