Harmonizing the GST and PST

[benny]

Mostly it's just because I'm tired of your continual one liners and your reluctance or inability to actually discuss an issue or outline a position.

Politics is not a place for the beggars.

[Wilber]

Politics is not a place for the beggars.

Obviously not a place to be taken seriously in your world either.

[benny]

Obviously not a place to be taken seriously in your world either.

Rest if you are tired!

[Cato]

The value added tax is the most natural tax on earth. It should be applied to everything except monetary transactions (insurance, banking) and real estate transfer, and it should replace the income tax completely, though that would require a long transition.

The PST has been misused for social engineering in a disgusting, ineffective, contradicting way. Supporting the needy should be done directly, not over tax manipulation - but the politicians don't want to give up their ways to bind some groups of voters to themselves.

Anyway, I welcome the HST; better late then never.

[benny]

The value added tax is the most natural tax on earth. It should be applied to everything except monetary transactions (insurance, banking) and real estate transfer, and it should replace the income tax completely, though that would require a long transition.

By definition, the most natural tax on earth is real estate tax.

[Wilber]

The value added tax is the most natural tax on earth. It should be applied to everything except monetary transactions (insurance, banking) and real estate transfer, and it should replace the income tax completely, though that would require a long transition.

The PST has been misused for social engineering in a disgusting, ineffective, contradicting way. Supporting the needy should be done directly, not over tax manipulation - but the politicians don't want to give up their ways to bind some groups of voters to themselves.

Anyway, I welcome the HST; better late then never.

I agree but unfortunately it is being implemented in addition to the present income tax. It is not a change in the way we tax, just more tax.

[benny]

I agree

Think again! You pass by the territory of animals; they will "tax" you of a bit of skin, at least.

Edited August 2, 2009 by benny

[Cato]

By definition, the most natural tax on earth is real estate tax.

Real estate tax, as it is in Canada is one of the most artificial, illogical, sick creatures of the society, nothing more but the epitomy of greed.

[benny]

Real estate tax, as it is in Canada is one of the most artificial, illogical, sick creatures of the society, nothing more but the epitomy of greed.

Animals have problems attracting females without territory.

Edited August 2, 2009 by benny

[madmax]

The HST is a flow through tax and it has no effect on my costs (i.e. paying 7% more to my accountant simply means I deduct 7% more from my HST bill).

In the long run a broad based consumption tax is the best type of tax because it means other taxes, such as income taxes, will be lower. The broad based consumption tax also ensures that everyone contributes something to the government which means everyone has a stake in getting value for taxes paid.

Then, to be fair, the best way to make certain everyone pays for their goods and SERVICES is to apply the Tobin Tax on investment transactions. Whats good for the goose is good for the gander.

Edited August 29, 2009 by madmax

[Riverwind]

Then, to be fair, the best way to make certain everyone pays for their goods and SERVICES is to apply the Tobin Tax on investment transactions. Whats good for the goose is good for the gander.

There is no difference between a transaction to move money from your savings account to your wallet and a transaction to move money from one broker to another. Do you really want to pay HST whenever you withdraw money from an ATM?

Finanical transactions are excluded because there is no value added with the transaction itself. That said, the company proving the service to process the transaction is adding value which means any commissions are taxable.

Edited August 29, 2009 by Riverwind

[madmax]

There is no difference between a transaction to move money from your savings account to your wallet and a transaction to move money from one broker to another. Do you really want to pay HST whenever you withdraw money from an ATM?

Finanical transactions are excluded because there is no value added with the transaction itself. That said, the company proving the service to process the transaction is adding value which means any commissions are taxable.

Damn your quick.... LOL...

[Topaz]

Has anyone heard that Ontario may not pass the harmonizing because of the financial problems and unemployment and that it was the Feds that are really pressing the provinces to do it?

[madmax]

Has anyone heard that Ontario may not pass the harmonizing because of the financial problems and unemployment and that it was the Feds that are really pressing the provinces to do it?

I have only heard that the NDP and the PCs are fighting against the tax. The PCs having the difficulties of talking out both sides of their mouths, when having to discuss with their Federal Cousins.

The Liberals are not backing down on the HST and continue to move it forward in the by election.

[Pliny]

The value added tax is the most natural tax on earth. It should be applied to everything except monetary transactions (insurance, banking) and real estate transfer, and it should replace the income tax completely, though that would require a long transition.

The PST has been misused for social engineering in a disgusting, ineffective, contradicting way. Supporting the needy should be done directly, not over tax manipulation - but the politicians don't want to give up their ways to bind some groups of voters to themselves.

Anyway, I welcome the HST; better late then never.

I don't know about "natural" but I agree it is the most equitable. The PST and income taxes are abhorrent political tools.

[ToadBrother]

I don't know about "natural" but I agree it is the most equitable. The PST and income taxes are abhorrent political tools.

I'm not even sure what kind of a political tool the PST is. I did books for years, and saw up close and personal a few PST audits, and all I could say at the end of the day was that it was the most ineptly constructed tax in history. No one, and I repeat no one, who sells goods in BC will ever come through a PST audit with the same answer they went into with. On the rare occasion, a business will discover they overpaid, but generally, the rules are so convoluted that you end up paying the government money, and can never quite say what you did wrong.

[Pliny]

I'm not even sure what kind of a political tool the PST is. I did books for years, and saw up close and personal a few PST audits, and all I could say at the end of the day was that it was the most ineptly constructed tax in history. No one, and I repeat no one, who sells goods in BC will ever come through a PST audit with the same answer they went into with. On the rare occasion, a business will discover they overpaid, but generally, the rules are so convoluted that you end up paying the government money, and can never quite say what you did wrong.

Keeping business in a constant State of confusion and instilling a nervous hysteria about taxation is how the tool is used. It impresses us with our serfdom.

[ToadBrother]

Keeping business in a constant State of confusion and instilling a nervous hysteria about taxation is how the tool is used. It impresses us with our serfdom.

Well, whatever the reason, that seems to be about to end. I don't like the way Campbell brought this in (or more generally how the BC Liberals neglected to mention just how big the hole had been blown in revenue), but the HST was very much reduce costs to business. The HST isn't a perfect consumption tax either, there are some weird rules, but it is infinitely superior to the PST.

People will bitch about it now (and they do have some right to), but at the end of the day, the Province has finally been put far enough over the barrel to see a major reform to its sales tax system.

[madmax]

http://www.theglobeandmail.com/report-on-b...article1299930/

Small businesses fear HST backlash

‘Additional taxes on some goods and most services is another reason to stop them from opening their wallets'

.......

But only 6 per cent said their prices will be more competitive as a result of those increased tax credits

[Nat]

I'm not even sure what kind of a political tool the PST is. I did books for years, and saw up close and personal a few PST audits, and all I could say at the end of the day was that it was the most ineptly constructed tax in history. No one, and I repeat no one, who sells goods in BC will ever come through a PST audit with the same answer they went into with. On the rare occasion, a business will discover they overpaid, but generally, the rules are so convoluted that you end up paying the government money, and can never quite say what you did wrong.

I've been audited three times and each audit interpeted the rules different than the last auditor. The last time the auditor was with us a whole week and she only ended up with $1100. in taxes & penalities it wasn't worth my time or hers for the audit. So all I can say is bye bye to those PST auditors who are lossing their jobs!

Edited September 26, 2009 by Nat

[Jerry J. Fortin]

I feel for you folks, but since I live in Alberta this kind of thing doesn't affect me and is 100% provincial.

[madmax]

I've been audited three times and each audit interpeted the rules different than the last auditor. The last time the auditor was with us a whole week and she only ended up with $1100. in taxes & penalities it wasn't worth my time or hers for the audit. So all I can say is bye bye to those PST auditors who are lossing their jobs!

If you believe that you are no longer going to be audited, or that someone is no longer going to be audited, you are seriously mistaken.

[Riverwind]

If you believe that you are no longer going to be audited, or that someone is no longer going to be audited, you are seriously mistaken.

The PST imposes a much greater burden on merchants because they are responsible for collecting paperwork and granting exemptions. With the GST everyone pays upfront and collects refunds from the government.

Frankly, there is no rational argument in favour of the PST from the point of view of a business.

[madmax]

Frankly, there is no rational argument in favour of the PST from the point of view of a business.

Except for the business that pays no PST and collects no PST from its customers. That will change as the tax will increase 8%.

[Riverwind]

Except for the business that pays no PST and collects no PST from its customers. That will change as the tax will increase 8%.

Such businesses are freeloaders that have not being paying their fair share.