Harmonized Sales Tax (HST) discussion
#981
Posted 04 October 2012 - 08:31 AM
You're saying small businesses are the backbone of the economy. I'm saying it's the producers and exporters that are the true generators of wealth in this country. Small businesses, unless they bring a net profit back into this country from foreign customers, simply recirculate wealth by servicing local consumers and each transaction between that business and a consumer devalues money through taxation (which is now higher with the HST). Government of course benefits from higher taxation on a wider array of goods and services.
[quote]
First off, Mike, most exporters are small businesses, so I don’t know why you are trying to argue the two as mutually exclusive.
Small businesses drive employment, and employ far more people than large businesses, including multi-nationals. There is absolutely no disputing this. These facts can be found all over the place.
Genuine wealth is only created by the combination of labour with land, capital and technology. There is no requirement for foreign transactions to create wealth. Wealth can be cash, but generally it is seen as an accumulation of capital (physical and investment). When China buys coal from Canada, it doesn’t result in China becoming less wealthy and Canada the converse. There is no finite amount of wealth in the world; just like there is no finite amount of money in the world (banks create money through fractional reserve banking and the money multiplier).
#982
Posted 04 October 2012 - 08:36 AM
But for the majority of working folks who live paycheque-to-paycheque, who have no savings now, and likely never will, increased consumption taxes are highly regressive. The more they pay in taxes on everyday goods and services the less they have left to save.
I don't know what proportion of the population is working folks living paycheque to paycheque, but I would guess that it is the minority, and if I were in charge I would not be making economic policy because of the minority, but instead I would be focused on the majority of people and what is the better policy overall.
#983
Posted 04 October 2012 - 10:15 AM
I don't know what proportion of the population is working folks living paycheque to paycheque, but I would guess that it is the minority...
And I'd guess that you'd be wrong. If it's not at least 50% of the working population then at very least it's a large minority. Let's see what a Google search returns...
A "survey by the Canadian Payroll Association found 47 per cent saying they would be in dire financial straits if their pay was delayed as little as a week."
#984
Posted 04 October 2012 - 10:21 AM
And I'd guess that you'd be wrong. If it's not at least 50% of the working population then at very least it's a large minority. Let's see what a Google search returns...
A "survey by the Canadian Payroll Association found 47 per cent saying they would be in dire financial straits if their pay was delayed as little as a week."
Yeah so it's a pretty large minority.
That's what they say, when asked in the poll. But surprisingly, those that do lose jobs don't immediately become homeless or turn to bank-robbing while on their EI waiting period. People cope.
#985
Posted 04 October 2012 - 10:25 AM
#986
Posted 04 October 2012 - 10:31 AM
Agreed, people find ways to cope, (at least in the short term) but no matter how you slice it a large number of Canadians have no substantial savings on which to fall back during a financial emergency.
It would really suck for anybody to miss even one paycheque, but the majority of poeple out there with houses and cars and many toys would not be in the soup kitchen line days after being laid off.
#987
Posted 04 October 2012 - 10:41 AM
Agreed, people find ways to cope, (at least in the short term) but no matter how you slice it a large number of Canadians have no substantial savings on which to fall back during a financial emergency.
That's what EI is for, we agree then.
#988
Posted 04 October 2012 - 10:43 AM
#989
Posted 04 October 2012 - 10:47 AM
The fact that so few people have any significant savings is an argument in FAVOR of higher consumption taxes. The fact that it unduly affects the poor should be addressed separately. Maybe through some sort of HST rebate program...
There IS a freaking HST rebate program for low-income people, everyone forgets that.
Those with low and modest incomes receive a GST credit of up to $381 annually
The B.C. HST credit provides up to $230 annually
1.1 million British Columbians get quarterly B.C. HST Credit payments
Low income British Columbians also receive $115.50 per adult annually through the Low Income Climate Action Tax Credit
That’s up to $726.50 every year.
PST in BC - Lower Income British Columbians
$726.50 is the HST back on $6000.00 in purchases each year. Not too shabby.
Strangely, it is also the exact total of Sparky's bar tab at the Dec 2010 VV Xmas party.
#990
Posted 04 October 2012 - 11:02 AM
#991
Posted 04 October 2012 - 11:28 AM
#992
Posted 04 October 2012 - 11:30 AM
Haha, I know there's an HST rebate program. I was trying to make a joke.
Oh Lord, right over my head...
#993
Posted 04 October 2012 - 11:42 AM
The fact that so few people have any significant savings is an argument in FAVOR of higher consumption taxes...
I do not recognize the spelling of this word. Did you mean FAVOUR? Or did you intend to have your American leanings show?
#994
Posted 04 October 2012 - 11:50 AM
#995
Posted 14 October 2012 - 05:52 PM
Haircuts - mine did go up under the HST. My barbershop (a loooong established outfit downtown) increased the price when the HST came in. It was a very small (I'd almost say 'token') increase, but coming after something like 10 to 20 years not increasing the price at all (i.e. at least a couple of times when it would have made sense to, but this owner held firm)... well, for me it just perfectly symbolized the bad timing of the hit on folks given the economic times, even more so than the examples with much higher increases.The price of my haircuts went up steadily over the last several years, but hasn't gone up once during the HST.
Perhaps in some cases it isn't lowering prices, but rather preventing some prices from increasing as soon as they normally would have?
(By the way, hi all - long time reader, first time poster)
#996
Posted 14 October 2012 - 06:03 PM
#997
Posted 03 November 2012 - 11:36 AM
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#998
Posted 03 November 2012 - 01:08 PM
Know it all.
Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.
#999
Posted 03 November 2012 - 01:55 PM
Victoria current weather by neighbourhood: Victoria school-based weather station network
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#1000
Posted 03 November 2012 - 04:03 PM
...I don't think the savings from the HST for the business were passed on to me.
Nor to anyone else since July 1, 2010.
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