XPost: can.politics, bc.politics, van.general   
   XPost: vic.general   
   From: 40%®Çonned@cda.ca   
      
   Looks like it.  Apparently the 'new Premier' may have made some very bad   
   choices about how to   
   bring the HST issue to a vote for British Columbians.  And now fewer are   
   needed to quash the tax   
   than if they had proceeded under the Initiative Legislation - instead of the   
   Referendum Act.   
      
   I imagine the year that the tax has been in place will more than pay what is   
   now going to be   
   owing to the Harper Cons - as a return of their 'incentive' money to BC - aka   
   'bribe money'.  If   
   not, let THEM figure it out.  I think BC is about to become HST-free.   
   _____________________________________   
   By Vaughn Palmer, Vancouver Sun August 6, 2011   
      
   Liberals' rush to have HST vote over could be undoing of the tax   
      
   The provincial Referendum Act says precisely how the B.C. Liberals should   
   respond if the verdict   
   of the just-completed ballot-by-mail is a "Yes" to getting rid of the   
   harmonized sales tax.   
      
   "If more than 50 per cent of the validly cast ballots vote the same way on a   
   question stated,"   
   says the act, "that result is binding on the government that initiated the   
   referendum."   
      
   B.C.'s initiative legislation, which gave rise to last year's anti-HST   
   petition and set the   
   stage for this year's provincewide vote, would have left the government a lot   
   more manoeuvring   
   room.   
      
   To get rid of the tax, opponents would have needed to attract the support of   
   50 per cent of all   
   registered voters, not just 50 per cent of how many actually voted. Nor would   
   the Liberals have   
   been obliged to do more than table the Bill Vander Zalm-initiated HST   
   Extinguishment Act in the   
   legislature.   
      
   But the Liberals, seeking to move up the decision by a few weeks and allow   
   balloting by mail,   
   voided the initiative vote scheduled for Sept. 24, and proceeded under a   
   different piece of   
   legislation, the Referendum Act, with the process that is scheduled to yield   
   up a result on Aug.   
   25.   
      
   They thereby opened themselves to a binding obligation should British   
   Columbians vote "Yes" to   
   the ballot question, namely "extinguishing the harmonized sales tax and   
   reinstating the   
   provincial sales tax in conjunction with the goods and services tax."   
      
   The legislation further obliges the government to act promptly and decisively   
   to follow the   
   dictates of the electorate: "If the results of a referendum are binding, the   
   government must, as   
   soon as practicable, take steps, within the competence of the government, that   
   the government   
   considers necessary or advisable to implement the results of the referendum."   
      
   In the case of a vote to extinguish the you-know-what, it has to be recognized   
   that the hated   
   levy is actually a federal tax, collected under the national Excise Act with   
   the consent of the   
   province, under conditions set down in a comprehensive agreement negotiated   
   between Victoria and   
   Ottawa back in 2009.   
      
   So the starting point for the Liberals would have to be an approach to the   
   federal government to   
   negotiate a way out of that agreement as soon as practicable. Ottawa, be it   
   noted, would be   
   holding most of the cards.   
      
   The tax agreement covered the five years ending July 1, 2015, and the province   
   agreed that   
   should the terms be breached at this end, the federal government would be   
   entitled to recover   
   the full $1.6 billion in transition funding provided to the provincial   
   treasury as of July of   
   this year.   
      
   There'd be administrative costs, time constraints and other considerations.   
   The negotiations   
   would be proceeding into unknown territory because at the time the agreement   
   was struck, neither   
   government contemplated the possibility of de-harmonization and a return to   
   the PST/GST   
   combination.   
      
   Nevertheless, as the independent HST panel noted in its report on the prospect   
   last spring: "It   
   can't be done quickly; however, it is possible to go back."   
      
   I expect the Liberals would be aiming to wrap up the talks with Ottawa as soon   
   as practicable   
   (there's that phrase again) in order to expedite the other changes necessary   
   to fulfil the   
   verdict of the referendum.   
      
   The Referendum Act says those steps should include the following: "Changing   
   programs or   
   policies, or introducing new programs or policies, that are administered by or   
   through the   
   executive government" and/or "introducing legislation in the legislative   
   assembly during its   
   first session after the results of such a referendum are known."   
      
   The provincial house is expected to sit this fall, probably starting Oct. 4.   
   Before bringing in   
   legislation to restore the provincial sales tax, the Liberals would probably   
   consult the public   
   about the details of re-implementation.   
      
   Perhaps they would make use of the legislature finance committee, which tours   
   the province to   
   conduct budget consultations every fall in any event.   
      
   The tour could give people the opportunity to say whether they want the PST   
   restored precisely   
   as it was, or with some changes, such as ending the exemption for restaurant   
   meals. The   
   committee also could consider whether the province needed to undertake other   
   measures to   
   encourage investment and growth to offset the pending end to the HST.   
      
   But I expect the Liberals would try to minimize appearances that they are   
   punishing the people   
   with higher taxes and/or spending cuts to make up for the loss of HST revenue   
   and transition   
   funding. More likely they would simply add the cost of phasing out the tax to   
   the provincial   
   debt and move on.   
      
   The independent panel reckoned the whole process untangling the harmonized   
   sales tax and   
   re-establishing two separate tax regimes would take 18 to 24 months.   
      
   The Liberals would be pushing to get it done sooner rather than later. If they   
   do indeed lose   
   the referendum, they'll be looking to put this public policy disaster behind   
   them as quickly and   
   painlessly as possible.   
      
      
   *******************************************************   
   "We CAN look after each other better than we do today.   
   We CAN have a fiscally responsible government.   
   We CAN have a strong economy; greater equality; a clean environment.   
   We CAN be a force for peace in the world."                      - Jack Layton   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)