In support of the HST

Opposition parties in British Columbia and Ontario are accusing the governments of both provinces of attempting a tax grab with the HST. But what is the real story of the HST? Niels Velduis of the Fraser Institute provides a strong argument for harmonizing sales tax in British Columbia. You can read the full details here, but I will provide a quick over view:

• The current PST charges inputs and outputs, this means you are affectively taxed twice on everything you buy.
• 3 provinces have already harmonized to and have experienced significant economic benefit.
• Provinces that harmonized experienced a decrease in consumer prices.
• Harmonization also encouraged investment in those 3 provinces
• It is estimated that harmonization will increase investment in BC by $11.5 billion and generate 113 000 jobs over 10 years

HST is far from a tax grab. It just makes good economic sense and opposition parties should take a deep breath and take an honest look at this policy.