PST vs VAT

[NAB]

Someone answer me this please... Once the HST situation is resolved, and presumably remains in affect after the referendum, ...what is there anywhere in this contract and legislation to prevent the provincial government from introducing yet another provincial level of consumption taxation (in addition to the ridiculous Carbon Tax, Translink Gas tax, etc etc) ...in the form of a new provincially administered province wide PST/VAT ?

I do recognize that the HST contract enables both levels of government to adjust "their portion" whenever it suits them in addition. By following the current path, is the provincial governement in effect asking BC consumers to sign a final blank cheque, ..made out "to whom it may concern"?

Nab

[Rwede]

Someone answer me this please... Once the HST situation is resolved, and presumably remains in affect after the referendum, ...what is there anywhere in this contract and legislation to prevent the provincial government from introducing yet another provincial level of consumption taxation (in addition to the ridiculous Carbon Tax, Translink Gas tax, etc etc) ...in the form of a new provincially administered province wide PST/VAT ?

I do recognize that the HST contract enables both levels of government to adjust "their portion" whenever it suits them in addition. By following the current path, is the provincial governement in effect asking BC consumers to sign a final blank cheque, ..made out "to whom it may concern"?

Nab

If, God forbid, we ever get an NDP government, your dire prediction will come true. How many billion dollars per year will we have to tax people just to pay the ridiculous interest costs on the NDP's "green bonds?" And they'll have to "pay back" the unions for all their support on the anti-HST and recall campaigns, and for paying Moe's salary. That money would be coming straight out of our pockets, with punitive taxation on companies that employ us too. Investment will dry up, welfare rates will once again hit 1 in 10, and the cost of living will soar as unions take over the provincial treasury once again, bloat the public sector, and make our industries uncompetitive.

The BCLs, however, are far too gun shy of any form of new taxation to take the risk of introducing something new. They may tinker with what we have, but I don't see any likelihood of any new taxation for a longgggggggg time to come. Green initiatives are dead, and I expect the new leader of the BCLs to toss the carbon tax shortly after the leadership convention. They will focus again on spending cuts - and the Socialists can then whine about their "entitlements" being cut. Boohoo, people will have to suck it up and look after themselves for a change.

[twobits]

Someone answer me this please... Once the HST situation is resolved, and presumably remains in affect after the referendum, ...what is there anywhere in this contract and legislation to prevent the provincial government from introducing yet another provincial level of consumption taxation (in addition to the ridiculous Carbon Tax, Translink Gas tax, etc etc) ...in the form of a new provincially administered province wide PST/VAT ?

I do recognize that the HST contract enables both levels of government to adjust "their portion" whenever it suits them in addition. By following the current path, is the provincial governement in effect asking BC consumers to sign a final blank cheque, ..made out "to whom it may concern"?

Nab

In my reading of the contract, it stated the contract was conditional to legislation being enacted to wind up the PST. Simple logic I think would interpret this to preclude the Province from turning around and creating a new accross the board consumption tax. Why would they anyway when they have the right (after 2 yrs) to adjust the Provincial portion (PVAT). Having said that though, I cannot see how the Feds could object to any other targeted consuption tax such as a Hotel Tax etc......we already have them outside of the HST.

Edit to add- come to think of it, Hotel Taxes are municipally levied and not by the Prov. That would be a breach under the HST agreement

[NAB]

Someone answer me this please... Once the HST situation is resolved, and presumably remains in affect after the referendum, ...what is there anywhere in this contract and legislation to prevent the provincial government from introducing yet another provincial level of consumption taxation (in addition to the ridiculous Carbon Tax, Translink Gas tax, etc etc) ...in the form of a new provincially administered province wide PST/VAT ?

I do recognize that the HST contract enables both levels of government to adjust "their portion" whenever it suits them in addition. By following the current path, is the provincial governement in effect asking BC consumers to sign a final blank cheque, ..made out "to whom it may concern"?

Nab

In my reading of the contract, it stated the contract was conditional to legislation being enacted to wind up the PST. Simple logic I think would interpret this to preclude the Province from turning around and creating a new accross the board consumption tax. Why would they anyway when they have the right (after 2 yrs) to adjust the Provincial portion Having said that though, I cannot see how the Feds could object to any other targeted consuption tax such as a Hotel Tax etc......we already have them outside of the HST.

Granted that twobits, although winding up the existing PST doesn't (to me) necessarily mean a new one, perhaps with a different name, couldn't be implemented if additional to the HST. The Carbon Tax is one such example, but it was implemented before the HST issue even came up. I'm thinking more in line with what taxation powers reside with the provinces, and whether that has been modified in any way once an HST buy in has been accomplished. As far as I can tell at this point there has been no change to those powers even suggested, let alone implemented in any way.

BTW. With respect to the Carbon Tax, I have to chuckle at those who rant on about the NDP penchant for redistribution of wealth. Is that not what taxes do? The Liberal's Carbon Tax is a particularly obvious direct example of that. It takes money (wealth) out of my and my customers pockets, and directs it to some entity or persons who the government determines is more in need of it. (On a "Revenue Neutral" basis of course LOL, minus handling and shipping charges ;-) )

Nab

[Al Czervic]

In answer to your question Nab I am fairly confident that the Government can always introduce a new tax if it so chooses. In fact, as I recall had the legislature here defeated the PST extinguishment bill we actually would have continued to have the PST on top of the HST.

[twobits]

In answer to your question Nab I am fairly confident that the Government can always introduce a new tax if it so chooses. In fact, as I recall had the legislature here defeated the PST extinguishment bill we actually would have continued to have the PST on top of the HST.

Al,

Part XVll
Item 58. - The Province will make, prior to the implimentation date, best efforts to wind down the Provincal Sales Tax of the Province, and will take, throughout the term of this Agreement, all actions neccessary to ensure that a Provincial Sales Tax of the Province will not be imposed in respect of the consumption, use, supply or importation of property or services in respect of which the CVAT is imposed.

[twobits]

BTW. With respect to the Carbon Tax, I have to chuckle at those who rant on about the NDP penchant for redistribution of wealth. Is that not what taxes do? The Liberal's Carbon Tax is a particularly obvious direct example of that. It takes money (wealth) out of my and my customers pockets, and directs it to some entity or persons who the government determines is more in need of it. (On a "Revenue Neutral" basis of course LOL, minus handling and shipping charges ;-) )

Nab

Nab, you don't even want to get me started about the Carbon Tax.....I get quite ugly.

[Al Czervic]

In answer to your question Nab I am fairly confident that the Government can always introduce a new tax if it so chooses. In fact, as I recall had the legislature here defeated the PST extinguishment bill we actually would have continued to have the PST on top of the HST.

Al,

Part XVll
Item 58. - The Province will make, prior to the implimentation date, best efforts to wind down the Provincal Sales Tax of the Province, and will take, throughout the term of this Agreement, all actions neccessary to ensure that a Provincial Sales Tax of the Province will not be imposed in respect of the consumption, use, supply or importation of property or services in respect of which the CVAT is imposed.

Thanks for that, very informative. Let us hope it is followed through on, in spite of currently being breached in many areas.

[NAB]

Thanks for that twobits. No fear, I get quite ugly every time I think of (or get nailed by) the Carbon Tax also.

I agree with Al. The way I read what you found we are already in breach of the contract, at least during the term of its 5 year applicability. And that breach includes the Carbon Tax IMO, which should have been revoked at the same time the PST was. I smell grounds for a class action lawsuit here ;-)

Nab

[Urbane]

Thanks for that twobits. No fear, I get quite ugly every time I think of (or get nailed by) the Carbon Tax also.

I agree with Al. The way I read what you found we are already in breach of the contract, at least during the term of its 5 year applicability. And that breach includes the Carbon Tax IMO, which should have been revoked at the same time the PST was. I smell grounds for a class action lawsuit here ;-)

Nab

Just don't mention your lawsuit idea to the Zalm ;-)

[NAB]

LOL. Now that I read it again more carefully, it would appear the province can add consumption tax, as in PST, to anything it wants, so long as both that tax and the HST are both not applied to an item. But I think also twobits pointed to a clause that applied some percentage (5%) of items could be excluded from HST. Gasoline I think is one the province chose to exclude and tax directly provincially instead.

Nab