January 25, 2010

HST - How it will affect you and your family

BC FORUM supports fair, progressive taxes. We do not support the proposed Harmonized Sales Tax (HST).

Our members – retired workers and workers nearing retirement – understand that it costs money to provide health care, education, environmental protection and other services to British Columbians.

As we have done all our lives, we are ready to pay our fair share, even if that means an increase in taxes. The HST, however, is not fair.

The HST will increase taxes paid by ordinary people by $1.9 Billion a year. We get nothing in return. Quite the reverse.

Many of the services seniors depend on are being slashed, while other essentials of life will cost more. We are being forced to pay $1.9 Billion more so large corporations can pay $1.9 billion less. It is a massive tax shift onto the shoulders of people who, in our case, live on fixed incomes and are already struggling to make ends meet.

Adding to the injury, Gordon Campbell and the BC Liberal Party promised in writing that they would not introduce the HST.

We are offended.

Mr. Campbell lied to BC seniors about an issue that significantly hurts our quality of life as we near the end of our days on this planet.

We urge you to contact your MLA. Tell him or her to vote to stop the unfair HST.

Goods and services you’ll pay more for

The following is a partial list of goods and services, currently exempt from PST, which will be subject to the full 12-per-cent harmonized sales tax if it is implemented.

• Airline fares within Canada.
• New homes. After promised rebates, the HST will add $26,250 to the cost of a home selling for $750,000.
• Real estate fees and commissions.
• Energy conservation, retrofits and equipment (e.g., insulation, solar power equipment, energy efficient appliances).
• Repair services for household appliances.
• Household maintenance such as renovations and painting.
• All food products except “basic groceries”.
• Non-prescription medication.
• Vitamins and dietary supplements.
• Restaurant meals.
• Electricity, natural gas and other heating fuels. (For what it’s worth, the government has promised a rebate.)
• Bicycles and tricycles.
• Basic cable TV.
• Residential phone service.
• Professional services such as accounting and home care.
• Summer camp for the kids.
• School supplies.
• Funeral services.
• Parking – the 12% HST will even be charged on the new 21% parking tax imposed by Translink in Metro Vancouver. It’s a tax on a tax.
• Movie and theatre tickets.
• Membership fees for gyms or health clubs.
• Dry cleaning.
• Personal services such as hair care.
• Magazines and newspapers.
• Work-related safety equipment, like steel-toed boots.
• Safety helmets, life jackets, first-aid kits.
• Smoke detectors and fire extinguishers.

Even “HST exempt” living expenses will cost more:

• Rent. Expenses such as maintenance, electricity and other required services will be taxed, putting pressure on landlords to raise rents.
• Strata fees. The increased cost of services purchased by strata councils is estimated at 5 to 8 percent.
• Insurance premiums. The increased cost of repairs, restoration and other services may force insurers to increase premiums.
• Residential care for seniors. All residential care facilities which contracted out maintenance and care services – as the government urged them to do – will pay HST on those contracts. The BC Care Providers Association estimates the HST will cost a 100 bed facility $210,000 a year, the equivalent of four to five care staff positions.

Copyright © 2009-2012 BC Federation of Retired Union Members. All rights reserved.

Disclaimer | Privacy Policy

Website designed and managed by Leopard Print Communications
Member CEP Local 525-G.