B.C. is "throwing away" cash on HST repayment, Bill Vander Zalm says
Ex-premier Bill Vander Zalm says Victoria didn’t do a good job of negotiating the repayment of the $1.6 billion given by Ottawa to the province for adopting the harmonized sales tax.
"They’re throwing away our money," Vander Zalm told the Straight by phone.
The B.C. government has agreed to pay back the full amount over five years. But Vander Zalm estimated that the federal government will have gained $1 billion in additional corporate income taxes with the HST shift.
"It used to be that if a corporation paid PST [provincial sales tax], it was a company expense and they would deduct it from their income, and therefore not paying income tax," he explained. "Now because they’re getting their money back [through recoveries of the provincial component of the HST], it becomes income, and it becomes taxable. So the federal government picks up a lot of money from the province."
Vander Zalm suggested that the province should repay only $600 million.
Comments
19 Comments
Arthur Vandelay
Jan 12, 2012 at 7:07am
Carlito, are you simply a stenographer? Before you print someone's absurd rumblings that you clearly don't understand, wouldn't you at least ask him to explain what he's talking about? Is your insatiable desire to skewer the Liberals worth coming off looking like Zalm's lapdog? Congrats Fluffy.
Juan Carlos Ruiz
Jan 12, 2012 at 8:28am
BVZ was a huge proponent and headed the movement to scrap the HST knowing full-well this would be part of it. Now he has the gall to complain about it?
One can argue the merits of the HST... As it turns out, it wasn't so evil and misguided after all. It DOES lead the rich to pay more taxes, at least far more than the archaic system we are goIng back to. One can argue that the HST was shoved down our throats by Gordon Campbell, fueled by lies and deceit.
But, as it turns out and we will all see... Once the HST was in, that's where it should have been left. We will all be worse off... And poorer... As a result of reverting. This province could use that $1.6 billion... And all the future revenue that now it won't be getting.
Birdy
Jan 12, 2012 at 10:16am
re: Juan Carlos Ruiz "We will all be worse off... And poorer... As a result of reverting."
No, we'll be poorer because someone is stealing our money.
If someone ran up on you in the street, and screamed "XYZST" while robbing you, would that be any different than someone screaming "ABCST" while robbing you?
It's not the alphabet soup nonsense the thieves mutter while relieving you of your wages than makes you poorer, it's the STEALING that makes you poorer. Kindergartners could easily understand this, why the hell can't adults?
Stealing is morally wrong. <---- Universal Truth
glen p robbins
Jan 12, 2012 at 10:43am
Adrian Dix should take the position that he will keep the honour an amended HST - when made Premier. That HST will be 11% (which he is able to do), with no tax on children's clothing up to age 12, and the federal Government will pay 2.6 billion dollars (another 1 billion) to the kitty. These funds will not go into general revenue but a type of Heritage fund but will go in health and education - but not for wages..
If you intend to do business - functionally quit the flea market effort and get at it.
Kurt Turner
Jan 12, 2012 at 10:50am
I think it would be a very good idea for all of us to stop taking advice from Mr.Vander Zalm. Getting rid of the HST was a poor decision. Does nobody remember that he was once Premier, and his judgment was not always spectacular ?
sparky
Jan 12, 2012 at 11:02am
Why the 18 months to reverse the HST?? The money the Gov't will collect in that time, probably will go a long way to pay the Feds off. They give some lame excuse about Business having to adjust. Balony.
say what
Jan 12, 2012 at 11:40am
Turner you have that ass backwards the HST was a turn off at best.
And just look at all the good the Liberals have done for the province and don't blink because it hasn't happened yet.
Why the repayment deal? It is a real weak point for the Liberals and I don't imagine the party wants to go into an election without the issue being resolved and putting Campbell to rest.
eCoyote
Jan 12, 2012 at 12:28pm
And don't forget the feds generated more money for itself by applying the HST to perhaps 17% more goods and services than before, if Ontario is any example (see: http://www.rev.gov.on.ca/en/taxchange/taxable.html). Whatever this amount eventually totals, it too should have been deducted from BC's repayment.
LostMyGlasses
Jan 12, 2012 at 2:46pm
The jokes on the people of BC, as we will have paid the extra tax for almost 3 years before it is finally reneged, on March 31, 2013. The feds would have reaped 3 years worth of all the extra tax we're paying here in BC. That amounts to hundreds of millions of dollars in additional revenue on top of the full repayment of the loan.
That amounts to more than inflation.
As I said, the jokes on us, because methinks all this is Kevin Falcon applying for a future job with the Federal Conservatives for the 2015 election. He's read the writing on the wall, the BCLiberals are a sunk ship, and as BC Finance Minister he would rather tow company line for the Federal Conservatives than sink with Chrunchy.
the jokes on us
Jan 12, 2012 at 3:26pm
Then how come no one is laughing when it comes to this latest deal and provincial liberals jumping ship to get on board with the Federal Conservatives may still spell Falcon's end and would be good for a laugh I guess? The Liberals are history. How fitting for a party that has ended up being the biggest joke as its HA, HA all the way to the Bank and how low can the Liberals go before the people turn on us.