Thursday, December 30, 2010

Has The HST Changed Things...

So how has the HST changed things in BC, we know it has increased taxation, but has it also changed the landscape in BC with regards to tax.

One thing that surprised me in speaking with various representatives of our government is how surprised they are it has changed so many things, in speaking with them it becomes very apparent that they really didn't think the whole thing through properly, otherwise they would of worked the various scenarios through and known the outcome in advance of any announcement or implementation. This lack of forethought is not good government in my opinion.

Some examples of the changes:

  • On numerous occasions since July I have been asked if I would like to pay cash "for a discount" this wasn't for construction related items, just normal transactions, it seems having to pay an extra 7% on items is feeding the underground economy.

  • You can no longer by a dozen muffins/cookies at Timmy's and pay no tax.
  • Charities spend more of the money you donate on administration as they are the same as an end user and subject the HST the same way any individual is.
  • You can now add 30% to the cost of eating out if you tip 18%.

Unfortunately increased taxation is always going to be a reality while governments spend more money than they bring in, but with the amount of debt we have now I see an ever continuing spiral into debt with no way out. It makes me wonder where things will be in 10 years, can we continue to have increased taxation. What will happen when 60% or even 70% of what people earn is paid in tax?

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