
The Harmonized Sales Tax (HST) is more commonly known globally as a “value-added tax” (VAT) and Canada is one of the last countries in the world to comprehensively adopt a VAT system.
Over 130 countries already have shifted to a VAT system including 29 of 30 OECD countries. Countries that have not embraced a VAT tax system have been shown to have higher prices (before VAT) at the domestic consumer level and higher prices at the export level. Okay, right there is where the HST must deliver for the consumer. If we have to pay it, we should see product prices drop.

Economists, politicians and business people supportive of HST claim that in B.C. where the economy is driven by exports, we would create jobs and improve competitive pricing by adopting the same VAT system owned by other countries. Our government has needed to answer the question. Does British Columbia want to compete to attract investment and job-creation through lower costs and higher productivity? If YES is the response, then implementation of the HST is argued as the most direct and most effective way to do that.

If true to its word, the BC Government will implement a point-of-sale rebate on numerous products including: gasoline or diesel; marine diesel or aviation fuel including biofuels; components used in a motor vehicle, boat or aircraft; books; children’s-sized clothing and footwear; children’s car seats and car booster seats; diapers and feminine hygiene products; all existing GST exemptions will continue to apply (i.e.; basic groceries). Further the promise has been made to offset the incremental cost of the HST on new homes by providing an HST rebate for new homes to a maximum rebate of $20,000. That means taxes remain essentially unchanged for new homes valued up to $400,000. HST only applies to new homes, not to previously-owned homes being re-sold.
GPS Application:
Christ’s opponents frequently sought to trap him in his words. If he would contradict the ruling Roman authority, they might condemn him. Matthew recounted how the Pharisees asked him a question about taxation. Was it right to pay taxes to Caesar was the question to which Jesus replied. Holding the Roman currency on which Caesar’s likeness was stamped and by which the tax would be paid he advised that they give to Caesar what belonged to him and give to god what belongs to him. In Matthew 22:15-22.
PS - (OECD stands for Organization for Economic Co-operation and Development and is comprised of 30 countries that accept the principles of representative democracy and free-market economy. Most OECD members are high-income economies with a high HDI {Human Development Index}and are regarded as developed countries.)
Noted BC Economist, Jock Finlayson and his colleague, Ken Peacock, wrote one of the best explanations of the benefits of HST recently.
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