The “YES| side of the HST debate – that is to say those opposed – got a considerable assist from the Vancouver Province, the Vancouver Sun and the Fraser Institute (the right wing “think tank”) who placed themselves on the NO side meaning in favour of the HST. If that isn’t resounding proof that the HST is a bad tax, nothing will. (By the way, the editor of the Sun’s editorial page is former Fraser Institute “fellow”, Fazil Milhar.)
Do I say this just because I don’t like the Province, the Sun and the Fraser Institute … and the answer is yes because they consistently stand four square behind big business, whereas I try to speak out for those a tax like this hurts. I’m fully behind free enterprise but against those who care nothing about ordinary citizens and which have, through their money, an unwarranted influence on politicians.
The HST is a bad tax being “user pay” or “consumption” tax which is a graduated tax like income tax in reverse which progressively hurts the further more down the economic scale you go. Thus the HST runs diametrically contra to our tax theory that the more you make, the higher your tax rate.
The HST will benefit big business but certainly not smaller ones like restaurants so we need to know why giving big business a tax break is good for us.,
The answer from the far right, as represented by the present government, the Fraser Institute and big business is that their savings will be passed on to the rest of us in lower prices, This is the Milton Friedman “trickle down” theory which has long been discredited by economists other than from the far right.
The late JK Galbraith dealt with it thusly “"Trickle-down theory - the less than elegant metaphor that if one feeds the horse enough oats, some will pass through to the road for the sparrows."
Integral to the governments case is that they will drop 2% of the tax in three years. I only ask this – does anyone really take promises from this government seriously? If you do, you must believe that Lucy is going to let Charlie Brown kick that ball. Few governments have much credibility – this one has NONE<
This is a bad tax from a bad government to help industry which doesn’t pay its fair share of taxes as it is.