March 8, 2010
The HST– even the name kind of sounds like a hissing cat. But a new report released by the BC government projects that the introduction of the HST will create 113 000 jobs AND increase wages.
BC’s real estate market has been booming lately. But its strength has largely been derived from government policy aimed at bolstering the housing sector including low interest rates and the home renovation tax credit. And instead of being a temporary measure, like interest rates, the HST would implement perpetual increases in growth.
But the HST IS going to make everyday purchases more expensive for the consumer. Haircuts and restaurants, among many other products and services, will see effective price increases across the board.
So where are the jobs going to come from then? It seems like all the HST is doing is INCREASING the cost of goods/services, right? Not quite.
The HST will make BC’s far more competitive internationally, attracting small businesses and large corporations alike. Professor Jack Mintz, chair of the University of Calgary’s School of Public Policy said:
“Without a doubt, British Columbia’s sales tax harmonization will be a game changer, promoting capital investment in the province and providing an opportunity for the private sector to create jobs and pay higher wages to workers” The Globe and Mail
So, the HST might not be just another tax grab after all. It may be a prudent, fiscally conservative policy change. Try your best to remember that when you’re eating that burger that’s 7% more expensive than before. International investment will probably come, right?