Sunday, October 11, 2009

Why the Conservatives are wrong on the HST

If you have happened to be listening to question period from the last week, numerous battles have been fought between the NDP and the Conservatives over the HST. The NDP points out how the HST will harm Canadians, to which the Conservatives respond by citing the NDP's opposition to reducing the GST. They further point to their action on behalf of the working class in reducing this tax.

The Conservatives do have a point in that the NDP did oppose a reduction of the most regressive tax in our system. However, one could argue that they were so vociferously opposed because the Conservatives measures amounted to withdrawing significant state revenue without compensating in another area. Such policy shows foresight now that a deficit is ballooning thanks to the lack of sufficient revenue. It also shows a dedication to the principle of a government that can act for good, instead of the deprivation techniques employed by Conservatives with the aim of eventually nullifying government's potential for positive action.

Meanwhile, the Conservatives evade the question and in fact introduce a new inconsistency in their reasoning. If they are in favour of helping the working class, as their interpretation of their reduction of the GST would suggest, then why are they extending a tax to goods and services never before taxed.

Groceries used to be exempt from GST and form a significant percentage of the expenditures of a lower income family. Yet, under the HST, this spending will be taxed.

The NDP is perfectly justified in demanding an answer to the extension of a regressive tax, especially when the Prime Minister's own responses to their questions indicate that he should be adamantly opposed to this HST his government is promoting.

And as for it being a solely provincial manner, BS.
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  1. Well, if the HST is being applied only in BC and Ontario, along with Quebec and NS, then it is somewhat a provincial matter. I'm not hearing any policy to nationalize the tax.

  2. It is being heavily pushed by Ottawa and what's more, it involves a national tax. It wouldn't work without Ottawa's backing.

  3. Flaherty pushed it, and bribed them with money for one year.
    One reason, the Feds make money on it.

  4. Michael Ignatieff and the Liberal Party support the HST.

  5. I am a good Liberal and I do not support it.

  6. The issues you have with the HST lay at the Provincial door steps. The Provinces can make the changes needed whether it is lowering there portion of the PST or exempting items.


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