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HST benefits questioned as marketing propaganda

HST is a controversial topic and has been for some time. There are some views from people that this will provide many benefits and I’ve touched on this in earlier posts. But in reality this can be hard to believe with many questioning where these voiced benefits are coming from. Lu Wang of “The Province” newspaper has strong views on this and below is an excerpt from a recent writing.

“I’m so sick and tired of all these claims about supposed benefits of the HST. They’re marketing propaganda ..”

How does slapping an extra seven-per-cent tax on previously untaxed services such as haircuts, restaurants meals, used-car sales, plumbing, etc., in any way help a family?

As for the supposed tax advantages, low-income families already receive PST credits. And as for the supposed jobs creation, really? If companies don’t need extra people to process PST credits, which is generally automated/contracted out to accounting firms, wouldn’t those people be laid off and need to find other jobs? Is that maybe where the extra 11,000 “new” jobs are supposed to come from? Also, aren’t a lot businesses already claiming a PST rebate much like GST?

The biggest cost for most products and services is labour, which isn’t subject to PST in the first place. So supposed savings from PST will likely be around zero per cent to three per cent. I seriously doubt that’s the real reason holding back business competitiveness.

This is a tax grab, pure and simple. The government isn’t even trying to pretend it would be revenue neutral, unlike the carbon tax.

Source: The Province

 

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