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HST Poll Sparks Response from Government

By 250 News

Thursday, September 02, 2010 03:34 PM

Prince George, B.C.- The Provincial Government has reacted quickly to an Angus Reid poll which shows people in B.C. believe many goods and services are more expensive now that the HST is in effect.
 
The poll indicates 68 per cent of people in this province believe their budgets have been effected moderately or severely by the HST.
 
76%  per cent thought basic groceries were more expensive, but the government points out there is no HST on basic groceries.
 
63% people thought total cost of their cellphone bill increased. The province says there was no change to cellphone bills from the HST.
 
61% per cent of people thought adult clothing prices increased, but the Province says there has been no change with HST.
 
And 29% of people thought children's clothing increased. This is where the province’s response is a little iffy. True, there has been no change in the tax on children’s sized clothing under the HST but there is no allowance for a tax exemption for adult sized clothing for children. This is an area which has many parents upset as the bill for clothing their adult sized children doesn’t change the fact that under the previous tax rules, the clothing was tax exempt if it was for a person under the age of 16.
 
The government’s response comes hot off the heels of the controversy over who knew what about the plans to move to the harmonized tax system before the last election.
 
Documents gained through Freedom of Information requests indicate the HST had been discussed as early as March of 2009, a month and a half before B.C. went to the polls for an election.
 
Finance Minister Colin Hansen has countered that while Ministry officials may have been briefed on the tax, there was no real discussion on the matter until late May, after the May election.

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Comments

My perception is my reality, so if I (colloquial) perceive an effect whether positive or negative, then that is what the case is.

What the government fails to understand is that with a majority of those polled perceiving a negative impact since the inception of the HST, then that is what they believe and no amount of posturing or information doling will change that. Joe Q Public may be dumb, but he sure ain't blind.

Maybe, just maybe, if something had been noted to decrease in cost would have tempered the citizen's perception. That was not the case, so here we are, us perceiving being taken for a ride and them still trying to sell the ticket.
The government says there is no HST on things like groceries---peanuts have HST.

But never-the-less, there is HST on many items and processes that go to getting the groceries into the store for us to buy.And those costs are passed on when we buy.

Does the government seriously think that 76% of the population is wrong. That's alot of people they claim are dumber than Campbell.
There is no HST on groceries.
True...up to a point.
What they are not saying is that any HST they pay on anything the store buys,is being passed on to the customers in the form of increases to the price of groceries.
We would have to be pretty damn naive to think otherwise.
And grocery retailers are not the only ones doing it!
Yesterday, BCTV news reported that our government had been in discussions with the federal government two months prior to the election about the HST. Yet they maintain that it was only after the election that the decision was made to implement the Hated Sales Tax. They maintain that the cost to the consumer would go down after business passed on the savings they received from the Harmonization.

Given that businesses of all stripes have just come through 20 months of the toughest recession in recent memory, I have to continue to ask our leaders, "Why would business pass along the savings to the consumer?" They wouldn't and they haven't. Therefore contrary to government's ascertian, and as been witnessed by the people of B.C., our overall costs to the consumer have and will continue to escalate.

If someone lies to you and admits it, you can and usually will forgive them. If like Richard Nixon, they continue to lie, they will be held accountable.

This government lied to us about the HST and they should and hopefully will be held accountable. To make it right, all they have to do is acknowledge that lie, and consult the very people they have deceived.
sekwof & Andyfreeze.

The benefit of the HST is that no business in the supply chain pays HST on anything they buy. Every penny paid in HST in the supply chain is refunded to the business. This is unlike the old PST where the cost of business inputs included the PST so there was many layers of PST built into prices.

The grocery store, trucking company, box making company, food production company, etc. do not pay any HST on their production inputs. There is no longer any hidden sales tax in BC.
Finally someone who knows the facts and isn't just running on emotion. People can't be bothered to educate themselves and the government did a poor job of explaining it.
You got that wrong kolberg. I pay HST on my truck tires and all kinds of other expense, such as eating while on the road.. and I pass that on. Get real!!! And that is only a part of it. You are either a Liberal member or someone too dumb to understand. !!
When will the honorable liberals quit lying???
sekwof don't you claim the HST on those truck tires and meals back from the govt when you file your HST return? So if that's the case you get it back and your not passing it on....
Can someone give me a list of items that have had a decrease because of the HST. I suspect that this would be a very short list.

If you are manufacturing lumber and you export it to China, or the USA, you get a (GST) HST tax credit for your exports. This credit is used to offset the HST you paid on the inputs. Exporters will always have more credits than inputs, and therefore will never pay any HST. However if you were to buy the same product locally as a consumer, you would pay 12% HST.

This tax is a shift from Corporations to Consumers. The fact that we export 80% of what we produce, and probably import 80% of what we consume (subject to HST) the only people who benefit from this tax is business and corp. Thats what the tax is all about. The fact that the elimination of the 13.5% manufacturing tax (replaced by the GST) and the elimination of the 7% PST (replaced by the HST should make it very clear, that business has received a 20.5% decrease in taxes since 1991, and consumers have picked up the tab.

This is not rocket science. It matters little what the tax applies on, because at the end of the day, consumers pay it.

To try and compare BC to other Provinces, especially the Eastern Provinces, is ludicrous. We are a huge import/export Province, and the savings from these taxes, go directly to business and corporations, at the expense of consumers.

People earning $40,000.00 per year and up, will pay anywhere from $600.00 to $2000.00 more per year in taxes depending on their expenditures.

The HST is a huge tax increase for consumers and a billion dollar a year savings to business and corporations. Thats all it is.

So the question is?? Do you want to pay the taxes for business and corporations, or do you want to continue to operate under the old system, where they paid a share of the tax burden.

Disregard the BS about price decreases, and job creation. Business operates on the basis of maximum profit at minimum cost. This means that whenever possible they will cut costs and jobs, to maximize profits.

Any new business that locates in BC would have probably located with or without the HST. This tax is merely a vehicle that the Liberals are using to deliver a huge tax break to their buddies.

Time to wake up and smell the flowers.
Here, Here Palopu! What pisses me off is the government actually takes us for fools.
At Save-On Foods recently, I bought a Chocolate Trifle, Whipping Cream, Fruit Top Trifle, Salsa, 7 Layer Dip and Tostitos. I paid HST on something with a taxable value of $9.00 with an HST tax amount of $1.08. They all should be classed as food to me.

Check your Terasen Gas bill and you will notice that you are also paying HST on your Carbon Tax.
EVERYTHING has gone up since the HST was inflicted on us. The rising cost of all items are not because the HST was added but because the vendors put the basic prices up. It was another lie from the liberals because they knew damn well that business would not be passing any savings on to the general public.
That said, there is no way we can revert to the PST and GST because we will have to cough up many, many millions to re-install all the PST bureaucracy. You and I will be the ones paying that as well. I think it would be wise to accept what we now have and just 'hate it'. Last year I bought a small part for my truck for 74 dollars. This same part is now 112. Thats a big increase. One gallon of paint is 63.00?
Some in the service sector were not even consulted on this change of taxation that is an existential threat to many in the sector.

In the service sector they are adding value and only have a limited value profit to work with between what their costs are and what they have the ability to charge. If you add 12% costs and their value difference was only 10% to begin with then this small business is now out of business.

If it was 12% increase on their net profits it would be an entirely different situation, but its 12% on their gross income all but wiping out any net profits to even work with.

The reason why PST was exempt to certain services was because they have little margin of value to begin with and its cheaper for government in the long run to forgo the taxes and have people working... even if the 'industry' isn't all that profitable at least its not a drain on taxes as it would be if those people weren't working and are then instead collecting welfare.

The government admits they didn't consult the stakeholders who would be effected the most, and made a rash decision as they say within days of the election. The small business sector is the largest employer in the province and the BC liberals implimented a 'rash' taxation policy to the detriment of that industry without any consultation... and then claim to be business friendly.

Sure a small business may be able to claim back what they have paid to provide the service (most service providers have little for input credits), but they still have to charge to the end user, and that cost comes right out of their net value they have to work with as taxed on their gross income.

So not only was this whole HST debacle a fraud on our electoral system making it and the election illegitimate, but it entirely ignored the entire small business service sector and their reason for a PST exemption in the first place.

A complete debacle of epic proportions that will do a huge amount of harm to BC's service industry (most that can will likely leave the province for Alberta), and the resulting pressures on our fiscal situation will cost us in magnitudes of exponential degrees when one has to factor in the rising unemployment and reduced incomes earned in this province.
supertech, "I think it would be wise to accept what we now have and just 'hate it'."

Kinda like going to prison and turning around and leaning forward closing your eyes and placing your hands on the desk. You may 'hate it' but it would wise to accept it.

"Great idea", supertech???
Let us show Mr Bell that the HST does hurt and not patronize his businness....
WENDY's

Jordan Bateman, the Langley Liberal riding association president, wrote on his blog Thursday that the government's handling of the HST has been one blunder after another and the minister Colin Hansen should resign.
He was quick to retract that statement...
any bets his job was threatened by Campbell or one of this cronies?
It's called the Paul Nettleton Syndrome...open your mouth and get fired

I paid $30.60 HST at my hairdressers yesterday, something I never paid before the HATED Sales Tax. I didn't leave a tip and won't be anymore. Everytime I eat in a restaurant, I pay HST which I didn't before and I will no longer leave a tip. HST is hurting everyone.
1) mythoughts if 12% of your hairdo is $30.60, you can afford the tax. No one needs a $300 hair cut.
2)Chester- isn't there a credit on the Terasen gas bill for the 7% that is the PST portion. As for the food they are taxing the stuff that someone had to process. Your seven layer dip is just like getting it from a resturant, its pre made, same with the salsa.
same with nuts though porter....all taxed...
call it a cracker no tax, call it a crisp..they tax it...and I have seen exactly the same item, both names, one they tax one they don't...no logic in that at all...so maybe the manufacturers will have to rethink the naming of their products.

the thing that gets me is i have to do the math to have enough money to pay for stuff, there are no signs around to advise oh by the way that 6 pack or that gasoline is going to cost an extra $3.00now...what if i don;t have the extra money and I've already put my gas in?? how stupid am I going to look? democracy is dead if the govt. pushes this stupid thing through anyways, and if bell and bond stand by and try to push it through as well, then recall em..if they aren't servicing the public's needs why are they in office?
Last week I took my dog to the groomer and the HST was $4. Taxes on grooming was never this high before.
Unfortunately "basic groceries" does not include items like cakes, snack foods, etc. I've noticed the stores have jacked up the prices and the receipts don't reflect HST.
In regards to fuel, I find this quite confusing. I've started paying attention to my receipts. Some receipts say "0" for HST on fuel, others say "HST included in fuel" and "GST included in fuel".
I think the plot is to confuse the hell out of us and grab as much $. I realize this is a simplified statement but I'm feeling very frustrated right now.
Here is a perfect example of the reality versus the perception:
"63% people thought total cost of their cellphone bill increased. The province says there was no change to cellphone bills from the HST."

Here is part of my invoice for August
------------------------
Your current bill (before taxes): $##.##
GST(#86239 5381) #.##
HST(862395381) ##.##
PST #.##
-----------------------------------

That was for the transition from pre July to post June. It clearly shows that there was PST and GST on cell phones before the introduction of the HST. The HST percentage is 12% = 5%+7%.

No change.

So, this is an indicator that around 63% of people really know squat about some of the bills they pay. The question then becomes, how do you deal with a population that really knows squat but are ready to complain?

That has been a question for decades and even centuries.

So, as bad as the tax may be, t
oops, computer decided it was time to post, totally against my wishes ... LOL...

To finish what I was writing:

As bad as the tax may be, the campaign to make people aware of the effect of the tax is worse and continues to be worse.

In this particular case they could at least have responded with a bit of an explanation.
Boycott gaming, liquor and those murderous smokes. Just for three months. Apparently the government makes a lot of money from them. But then again, if we do that somewhat successfully they will probably raise the HST to make up the shortfall. Ain't life grand?
I agree on your point 100% Gus. A friend of mine looked at his bill at a restaurant and said "WOW - Look at the HST!!"
I said "what was the gst and liquor tax on your bills previous?"
"I dunno..."
Because it is all one line people notice it. For the most part is very little change. Except haircuts apparantly - I havent read a blog yet about the HST without someone bringing up haircuts. LOL
Hst on parking wasnt there befor!!!!
People do not have the time to play the Governments game as to what is or what isnt subject to tax. The Government could have been a lot clearer if they chose to be. Seems they chose not to be, and for good reason. They want you to spend time debating what the tax does or does not apply to, because this takes your attention away from the real issue.

THE TAX IS A $1.8 BILLION DOLLAR TAX SHIFT FROM BUSINESS AND CORPORATIONS TO CONSUMERS.

It really doesnt matter what it applies on. At the end of the day you will be paying anywhere from $600.00 to $2000.00 per year in increased taxes.

An example. A cup of coffee that used to cost you $2.50 had 5% GST which amounted to 12.5 cents. The same cup of coffee would now have a tax of 30 Cents. An increase of 17.50 Cents. Doesnt seem like much until you consider that people pay for many cups of coffee over the year. Even at one cup per day, which is realistic for a lot of people you would pay $63.87 per year. If you spent $60.00 per week in restaurants you would pay $218.40 per year. It goes on and on. Death by a thousand cuts.

There are 70 items that are subject to the HST that were exempt before. Most of which rarely get mentioned because the vested interest groups, and the Government, etc; try to downplay the impact of this tax.

Some items subject to the increase. Hockey Tickets, Non-Prescription Meds, Telephone, Cable TV, Membership Fees, Movies/Theatre, Taxi Fares, Airline Tickets (Domestic) Golf Fees, Resort Packages, Dry Cleaning, Vitamins, Dietary supplements, School Supplies, Consultng Services, Fishing Charters, Veterinarian Services, Real Estate Fees, Bicycles, Accounting.

I just listed 18 items subject to the tax. There are 52 more that I didnt list. If you want to see how much you are paying extra for HST get a list of the items it applies to and do the following. IE;

Golf Fees. $40.00 HST 12% $4.80
Golf Fees. $40.00 GST 5% $2.00

Increase because of HST is $2.80. If you golfed 20 Games per year your increase would be $56.00

A season Hockey Ticket will cost you approx $35.00 more this year than last.

Anyone who thinks that this is not a huge tax increase on consumers is a fool. It is a huge tax grab, and the Liberals should be kicked in the --- for trying to bring it in.

If you want to see what this tax applies on go to Fight HST on the web and you will find a list.

Just the four items that I mentioned above will cost you an additional $373.00 per year, and I didnt mention haircuts.

Have a nice day.

PS. Your membership at Costco will go up by 7%.