B.C. is "throwing away" cash on HST repayment, Bill Vander Zalm says

by Carlito Pablo on Jan 11, 2012 at 3:40 pm
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Bill Vander Zalm.
Stephen Hui

Ex-premierBill 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.

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Eye on the HST

"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) Add New Comment
Arthur Vandelay
Jan 12, 2012 at 7:07 am
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.
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Juan Carlos Ruiz
Jan 12, 2012 at 8:28 am
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.
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Birdy
Jan 12, 2012 at 10:16 am
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.
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glen p robbins
Jan 12, 2012 at 10:43 am
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.
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Kurt Turner
Jan 12, 2012 at 10:50 am
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 ?
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sparky
Jan 12, 2012 at 11:02 am
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.
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say what
Jan 12, 2012 at 11:40 am
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.
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eCoyote
Jan 12, 2012 at 12:28 pm
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.
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LostMyGlasses
Jan 12, 2012 at 2:46 pm
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.
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the jokes on us
Jan 12, 2012 at 3:26 pm
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.
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Morty
Jan 12, 2012 at 5:13 pm
If anyone would know anything about throwing money away, it would be Bill Vander Zalm.

Seriously: Why does anyone listen to what this crank has to say, anyhow? Wasn't having him disgraced as Premier enough?
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Seriously Morty
Jan 12, 2012 at 8:35 pm
Slam Zalm all you want but it isn't about Zalm but the people of BC and the year is 2013. The People had their say and where passionate about it and insisted when Government refused to listen. And with the last ten years of the new Era and "We're in the money" and the only thing that has happened is "We're deeper in debt" there comes a time when it just isn't real even if you want to look back 20 years or more.
Jobs, jobs, jobs, lots of low paying jobs, part-time jobs, no where jobs, but no real jobs as of yet while many fear they will get the pink slip you want to bet?. Government employees are going down for the count and along with them the services that many count on. Canadians have spent a great deal of money on trying to buy jobs and now that many have no job they also will have no services to boot. Banks did a survey to see if business was going to be hiring anytime soon thanks to all those big tax breaks and business responded as soon as things pick up and would be hiring in the future. So seriously Morty, why buy in?
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Save Vancouver
Jan 12, 2012 at 9:51 pm
LostMyGlasses - the joke will be on you and the others who voted down the HST when you go the hospital and wonder why you wait hours and then get a bed in a broom closet. Or when you pay $10 to ride the bus. Or when your kids pay $10k a year for university.

Social programs aren't funded by unicorn farts and pixie dust. A consumption tax like the HST is the most efficient method of funding those programs.
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Jonnie B
Jan 12, 2012 at 11:15 pm
Van der Zalm was, is and will always continue to total moron. But hey, if he wants to keep spewing his rhetoric with his 'charisma', and people just keep believing his every word without spending one iota of their time checking things out for themselves rather than hearing and believing only what they want to, facts be damned, good on ya. Just too bad that you become others' problems, which are only compounded by the media darling who seduced the liberal delegates, mostly with her talk show (on which she did 90% of the talking, and 100% if she disagreed with whomever she was talking to at the time), as easily as the Zalm seduced many of you.
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wr lg
Jan 13, 2012 at 9:45 am
Little Lord Falconroid was so glad the feds were not going to charge any interest on our tax dollars they gave to our provincial treasury.

The feds have been receiving a windfall far greater than any interest on the $1.6 billion of our tax dollars they delivered back to BC.

At the gas pumps you pay for the gas, then a provincial motor fuel tax, a carbon tax and a federal surcharge tax. Once all these charges and taxes are totalled you then get hit with the GST. A tax on your taxes, including the carbon tax. How many hundreds of millions have they been raking in for years? The $1.6 billion was our money in the first place.
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ram
Jan 13, 2012 at 10:15 am
The HST would not generate more money for B.C. but for the federal government which would divide that money between all the provinces. So after we pay all that extra what do we get? And I thought this was revenue neutral so were it all this extra money coming from? And if we are scrapping the HST and have to pay the 1.6 billion back why are we giving the feds this extra cash for 18 months? Give them the equivalent of the GST keep the extra from the HST and use it to pay down the 1.6 billion repayment.
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2nd Nation
Jan 13, 2012 at 12:43 pm
Hey Van der Scam - can the public please have the billions you gave away to developers ? That'd go some way to improving our financial situation.
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Goldorak
Jan 13, 2012 at 8:55 pm
VanDerZalm, the only reason we have to repay this money is YOUR fault A**hole!
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I'm a BC Liberal supporter
Jan 14, 2012 at 12:03 am
Where did the 1.6B come from?

Private banking. The debt this government has run up is so astronomical - It can never be repaid. You are now indentured and it is not an accident.
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