To the editor:
Actually quite a lot of things will cost more with the Harmonized Sales Tax (HST).
The $120 saving is calculated by deducting $1.3 billion from the tax collected from families for presumed 90 per cent savings passed through from business as price cuts.
That still wasn't quite enough to offset the cost, so [the B.C. Liberals] deducted the HST on new homes, funerals and other "extraordinary items" - another $250 million.
Without these two "adjustments" the HST at 10 per cent will still cost families an average of $400 a year.
Of course, that is after four years of HST, so the year just passed cost families about $1,200, as will next year.
The following year will be about $800 and finally drop to $400 after that.
But we do get benefits from that right? Sure 24,000 jobs after 10 years.
At 12 per cent, those jobs cost $1 million each in extra tax on families. At 10 per cent, the cost drops to $300,000.
Surely, we can come up with a more cost effective way to create employment.
I had to think long and hard before deciding to continue to oppose the HST.
At 10 per cent, many essential things that low-income people need will cost less.
When combined with the HST tax credit, most low-income earners would be better off once the rate cut kicks in.
On balance, however, it is still a bad tax policy. There are more effective ways to help low-income earners than HST just as there are better ways to create jobs.
I will vote "yes" to kill the HST.
Bruce McAra, CMA
Cumberland
