To the Editor,
I am curious to know what our local overnight economists would put in place of the harmonized sales tax to replace its revenue.
If we were to go against sound economic policy, and return to the antiquated retail sales tax, the province will be out $500 million every year. This does not include the unknown amount the government will have to spend to fire up another level of bureaucracy to collect PST.
The options are fairly straight forward: raise taxes, impose new taxes, borrow the money, cut spending or a combination of the four. Yet, I do not hear which five options our disgraced former premier Bill Vander Zalm would like to go with. I have also yet to hear from our local anti-HST loudmouths which combination of pain they would like to prescribe.
My guess is low income earners will lose HST rebates and the income tax cut that came with it and the reinstatement of the PST with fewer exemptions and/or a higher rate. No one has promised the same rate or the same exemptions. For all we know, next year when you go to dine out, you could be paying eight per cent PST and five per cent GST.
I understand how much people hate Gordon Campbell and the Liberals, but to turn reasonable economic reform into a political witch hunt is short-sighted and detrimental to all of us.