XPost: bc.politics, van.general, vic.general   
   From: Canuck57@nospam.com   
      
   On 02/04/2010 5:02 PM, cognomen@domus.ca wrote:   
   > April 1, 2010   
   > HST puts B.C. Liberals between rock, hard place   
   > By Justine Hunter   
   >  From Friday's Globe and Mail   
   > Tax still a tough sell, even to some the government thought it had placated   
   > While Colin Hansen was in Victoria earlier this month preparing the   
   > legislation to make   
   > way for the harmonized sales tax, Douglas Day was in Squamish working   
   > out the final   
   > details for an $18-million housing development just outside his office   
   > window.   
   >   
   > The Finance Minister and the developer once worked on the same side   
   > politically. But as   
   > Mr. Hansen introduced the law that he says will create new jobs, Mr. Day   
   > pulled the plug   
   > on a project that would have put a hundred tradespeople to work.   
   >   
   > "It's 100 per cent because of the HST," said Mr. Day, president of   
   > University Heights   
   > Development Corp. "It forced me to stop and get the accountants out."   
   >   
   > Here's what he concluded: By the time the 25 family homes would be ready   
   > for market, the   
   > HST would put them out of reach of too many potential buyers.   
   >   
   > So his risk was increasing. And for what potential profit? On a $725,000   
   > home, his company   
   > could expect to earn $20,000. The total tax bill, meanwhile, would be in   
   > excess of   
   > $160,000.   
   >   
   > "Nice work for the government, if we were dumb enough to go ahead," he   
   > said.   
   >   
   > While he joins a crowded field of HST opponents, Mr. Day is especially   
   > bitter because he   
   > thought helping elect Gordon Campbell's government would improve the   
   > business climate.   
   >   
   > "I stumped for Gordon Campbell when he ran for the leadership," he said.   
   > "I went   
   > door-knocking with Colin Hansen. This is not someone I'm going to war   
   > with lightly."   
   >   
   > Oddly, Mr. Hansen believed the home builders were one group he was no   
   > longer at war with,   
   > after he agreed to raise the threshold for new homes so that those   
   > priced at $525,000 or   
   > less would not be subject to additional tax.   
   >   
   > Peter Simpson, head of the Greater Vancouver Home Builders' Association,   
   > said his members   
   > are still angry. The industry is just starting to recover from a bad   
   > year due to the   
   > recession; now the HST, combined with rising interest rates and tougher   
   > mortgage rules,   
   > could drive away new homebuyers in droves. "It might create the perfect   
   > storm of buyer   
   > resistance in July," he said. If it does, Mr. Day won't be alone in   
   > cancelling new   
   > projects.   
   >   
   > New taxes are never easy to sell, but Mr. Hansen's government has   
   > managed to make new   
   > enemies, including Mr. Day, because of a spectacularly poor rollout.   
   >   
   > His tax is going over about as well as the introduction of the GST.   
   > Brian Mulroney brought   
   > in the goods and services tax after winning the 1988 federal election.   
   > And voters   
   > demonstrated their capacity to hold a grudge, almost wiping the   
   > Conservatives off the   
   > political map in 1993.   
   >   
   > By comparison, Ontario's government is introducing the HST at the same   
   > time as B.C. with a   
   > fraction of the grief. Not that Premier Dalton McGuinty's Liberals   
   > haven't been bruised by   
   > the issue, but the rollout in Ontario shows some marked differences from   
   > B.C. The Ontario   
   > HST was crafted as part of a tax reform package that included property   
   > and sales tax   
   > credits and personal income tax reductions. Plus, Ontario tax filers   
   > will see a series of   
   > three cheques, offered as a buffer to the transition.   
   >   
   > Mr. McGuinty survived an about-face on taxes once before. After   
   > campaigning in 2003 on a   
   > commitment not to raise taxes, he brought in a new health premium - and   
   > was re-elected in   
   > 2007.   
   >   
   > Mr. Hansen can't count on the same level of forgiveness here. "Politics   
   > in B.C. are more   
   > polarized," the Finance Minister said in an interview. "There are so   
   > many groups out   
   > there, who, if Gordon Campbell says it's white, they'll say it's black   
   > regardless of what   
   > the facts are."   
   >   
   > While he complains about disinformation on the HST, the facts themselves   
   > are a tough sell.   
   >   
   > It's not just the price of new homes that will rise on July 1. Such   
   > everyday items as   
   > cable bills, bicycles, newspapers, restaurant meals, haircuts and   
   > household repairs will   
   > be subject to a higher sales tax in B.C. Mr. Hansen has offered some   
   > low-income rebates,   
   > but doesn't have any more tax room to sweeten the deal.   
   >   
   > He has tried to explain how businesses will recover the tax they pay on   
   > their purchases,   
   > so prices should eventually come down. But he concedes: "Most people,   
   > when you talk about   
   > the marginal effective tax rate on investment, their eyes glaze over."   
   >   
   > Looking ahead to the next provincial election, Mr. Hansen and the B.C.   
   > Liberals can only   
   > hope that the promised benefits of the HST will make voters measurably   
   > less cranky than   
   > they are now.   
   >   
   > "I expect three years from now, the HST will still be, by and large,   
   > unpopular with most   
   > consumers," he said. He figures the economy will be roaring along by   
   > then, but he raises   
   > the problem himself: "People won't make the connection that it's the HST   
   > that actually   
   > triggered the job creation and economic growth. The question is, what   
   > will loom bigger in   
   > people's minds?"   
      
   People have to learn to find and vote for people that are not statism   
   big expensive government.  Train themselves not to listen to the old   
   line tax me more parties and go for representation by the people for the   
   people.  And not the hand picked party boy pupets.   
      
   Also think of the tourists, fewer want the higher taxes will go back and   
   say oh my, was it expensive.  So fewer come next year.   
      
   We are going to Alaska this year, never been there and have worked it   
   out to be a whole lot less expensive than going to the island.   
      
   --   
   Liberal-statism is an addiction to other peoples money.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)