Why I'm voting YES to defeat the HST

As your representative in the Legislature I want to explain why I am voting “ YES ” to defeat the HST.

At its core, the HST is an unprecedented tax shift, transferring $1.9 billion per year in taxes from large corporations to families and small businesses. This is unfair, and there are no significant benefits to the province to justify this wealth transfer to the corporate sector while increasing the burden on families and small business.

The government position on the HST has changed continuously since the tax was sprung on British Columbians after the 2009 election. Now, the government is pledging a 2 per cent HST reduction by 2014. After being misled before, can we believe this new promise? Just a few months ago Premier Clark said that dropping the rate of the HST by a point or two would be buying their votes with their own money. Clark’s change of heart in announcing a 2 per cent HST cut will also take over a billion dollars away from government revenues that service health, education and other programs.

The government is promoting the referendum as a choice between a 12 per cent tax or a 10 per cent tax, but the reality is the HST is a 7 per cent tax increase on items not previously taxed under the PST . Items like restaurant meals, home repairs, movie tickets, taxi fares, newspapers, magazines, gym memberships, haircuts, dry cleaning – even a sandwich at a coffee shop – cost 7 per cent more.

Under the HST, a two-income family, with both members earning $50,000 each, pays over $1,000 more than under the PST and GST combined. This does not include the increase to big-ticket items, like renovations or a new roof. Countless other items such as prepared food, nutritional supplements, telephone, and cable services also cost more.

The government has claimed that HST rebates assist low-income families. But HST rebates are not ‘free money’ for low income people. The rebate is designed to compensate for the extra costs of the HST. Under the HST, low-income families pay more for haircuts, school supplies, bicycles, fees for children’s sports programs and more. A family earning the B.C. median family income of $67,890 would not qualify for HST rebates.

In addition to increased costs, the HST removes provincial control over tax policy. In the past, B.C. has used tax policy to encourage consumer spending behaviour. For example, provincial exemptions on energy-efficient appliances and bicycles were possible, but now those items are taxed 7 per cent more. This is not good policy, or good leadership.

I am angry that the Liberal government is not following a fair process for the referendum vote. There are no spending limits on third party HST referendum advertising, which means the corporate community will be able to spend millions to promote the HST without accountability. Even more objectionable is the government spending over $5 million of your tax dollars to promote the HST. These activities would be illegal in a regular election campaign, but the premier has chosen to allow it.

Look past the advertising, consider what is good for you and your family, decide who you can believe, and vote accordingly. I have decided to vote YES to abolish the HST and return to a PST/GST taxation model in British Columbia.

Shane Simpson, MLA
Vancouver-Hastings