Monday, June 28th, 2010
As global leaders continue attempts to legislate financial governance systems from the top down, the integration of economic regulations and taxation regimes is simultaneously pushed from the bottom up via the piecemeal regional implementation of new standards pressed on nations by policy mandarins. From the article:
Experts compare the HST implementation process to the GST experience in 1991. In 10 years, Dunn says, not only will people be accustomed to paying the tax, rates could be even higher.
Consumption taxes around the world range between 20 and 25 per cent in many countries.
The HST is genetically related to Europe’s VAT, China’s VAT, and indeed now this tax has been adopted by most jurisdictions throughout the world. Why? Control. Wikipedia gives us a useful sketch:
…if sales taxes exceed 10%, people start engaging in widespread tax evading activity (like buying over the Internet, pretending to be a business, buying at wholesale, buying products through an employer etc.) On the other hand, total VAT rates can rise above 10% without widespread evasion because of the novel collection mechanism.
The ‘novel’ mechanism?Ãƒâ€šÃ‚Â Assessing tax at every point of the supply chain and thus building in an incentive for all business to act as little tax agencies for the Federal Government. It’s been described as a ‘money machine’, and with good reason. The upshot? Mulroney wins. The VAT he always wanted to press on the nation has finally been implemented via a decades-long detour. Happy Canada Day.
Related: Anti-HST petition could change B.C.’s political landscape | B.C. anti-HST petition meets legal benchmark | Liberals admit HST will cost families up to $480 a year | Underground economy emerges in Ontario in response to HST | B.C. anti-HST petition hits target weeks ahead of schedule | Protesters worked up over HST levy on fitness | Anti-HST petition nears goal in B.C. | HST rage puts B.C. Liberals in a spot | Harmonized tax could cost Ontarians $5.9B a year | HST will cost families, McGuinty finally admits | HST begins taxing Ontario on Saturday | First Nations protest against HST | Canadian taxes fastest-growing expense: Report | BC Govt, Anti-HST Campaigners Dispute Legality of Pro-HST Leaflet | Electricity rates surge in Ontario | Up to 50,000 protest Charest’s tax hikes | Paul Volcker: VAT, Carbon taxes may be necessary | Nova Scotia budget hikes HST rate | Thousands protest Quebec budget | HST legislation introduced in B.C. | Facing years of deficits, Ontario freezes wages | Former premier Bill Vander Zalm rallies against the HST in BC | Ontario tax collectors get $45K severance, keep jobs in HST federalization deal | Athens erupts as Greek austerity plan passes | HST ad campaign debuts in Ontario | Ont. deficit could linger for years: McGuinty | HST bill passes, 13% tax starts July 1 | Poll: HST equals Hated Sales Tax | Anti-HST protest at Ontario legislature spills onto Toronto streets | Tories, Liberals, Bloc approve HST for Ontario and B.C.
The Canadian Press
June 28, 2010
In two of Canada’s most populous provinces residents are bracing, preparing and bemoaning Thursday’s arrival of the harmonized sales tax.
Heidi Graw has decided that after years of feeling helpless as the cost of living climbs in British Columbia, she has had enough: she won’t pay another tax.
As of July 1, when the new HST takes effect in B.C. and Ontario, Graw will boycott purchases of anything beyond the basics.
“We won’t be going out to the restaurants, we won’t be going to the movies, we won’t be going to the rec centre, or all these other little frills,” says the Mission, B.C., resident.
“That’s the only way I can take control over how much tax I’m prepared to pay.”
The HST merges the five per cent federal goods and service tax with provincial sales taxes of seven per cent in B.C. and eight per cent in Ontario. That means consumers will pay more for a variety of things, depending on the province.