The HST is going to save consumers, construction companies, and their clients money. The new 10 per cent HST is lower than the old 12 per cent PST-GST – and that means $120 more in the average family’s pockets.
The HST is going to save consumers, construction companies, and their clients money.
The new 10 per cent HST is lower than the old 12 per cent PST-GST – and that means $120 more in the average family's pockets.
Despite these savings, unions, the NDP and some associations are opposing the HST and trying to convince people that they need to vote to go back to higher taxes.
Don’t believe the arguments that the HST applies to more things, so it will cost you more.
The majority of household budgets are made up of products that used to have the PST-GST applied to them.
In fact, 80 per cent of things will cost less.
But, it’s more than higher taxes that would come with rejecting the HST – we would also lose a tax system that has the power to build our industry and our economy.
Only a vibrant economy needs construction – and the HST is going to help make this happen due to the way it works. Our industrial and commercial clients are going to have more money for investments in capital projects and staff because of the flow-through nature of the HST.
The old PST was imbedded in the cost of goods and passed on to the final customer.
This means that projects that would have been marginal under the PST-GST are a go under the HST.
ICBA represents small construction companies and their suppliers. They’re the kind of companies that make up 98 per cent of B.C.’s businesses. They employ more than one million people. And, these are the kinds of businesses already seeing the HST benefitting their operations, their customers, and their employees.
On Vancouver Island, Downs Construction took their HST savings and gave their 38 employees a raise.
They’re using their input tax credits to invest in their business and staff.
IMFS International Marine Flotation Systems, which build floating homes in Delta, has 11 new people on staff thanks to the HST. They were paying PST on top of PST on their business inputs, making products more expensive for customers. For them, the HST is simpler and more efficient and saving them time and money that they can re-invest in their business.
The Commonwealth Group of Companies created 40 construction jobs in Prince George with more than $16 million in investments made possible by the HST.
But, the NDP and their friends in the big unions want to kick all these benefits to the curb.
They want seniors, lower-income earners and children to pay the price for their politics. HST rebate cheques as high as $230 for lower-income earners, as well as HST transition cheques worth $175 for children under 18 and seniors, will disappear if we reject the HST.
When people vote, they need to remember – getting rid of the HST isn’t going to get rid of sales taxes – it will just bring back the 12 per cent PST-GST double tax that will end up costing them more. At the same time, it will kill the job building power of our economy and kill the kind of economy that buys construction services.
That’s why I’m voting No to going back to the 12 per cent PST-GST and encourage you to do the same.
Philip Hochstein is the president of the Independent Contractors and Businesses Association of British Columbia. Phil is also a member of the Journal of Commerce Editorial Advisory Board. Send comments or questions to editor@journalofcommerce.com.
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