Chapter 3-4

http://www.theglobeandmail.com/news/national/british-columbia/bc-to-harmonize-sales-tax-with-gst/article1228772/

Summary

Starting July 1st, 2010, harmonized sales tax will be introduced in B.C. The harmonized sales tax will be PST and GST Combined to a total of 12 percent. Once implemented, the HST will reduce buisness taxes by $1.9 billion and save companies $150 million in administrative costs. Any person spending less than $400,000 will not be affected by the new tax, but for new homes there would be an extra cost in sales tax. The federal government will bay $1.6 billion to B.C for the transition to adapt the new B.C. HST.

Connection

The B.C. HST is an excise tax. The tax affects shelter, clothing, and footwear, but consumer prices fell after harmonization. Basically now people with lower income will be affected more than those with higher income. The chapter discusses the role of the government and by introducing the HST they have tried to generate revenue for themselves. This could be a sign of a constantly growing economy. Taxes should be fair but the new tax and the increase on taxes in homes, some people may not be able to afford a house anymore.

Reflection

With this new tax introduced, the poorer get poorer and the richer get richer. Also house owners will be subjected to pay this tax. With the housing prices in Vancouver averaging at around $700,000 it will cost the buyer to pay more for the house than they would have to before. The only things the government has exempt from the HST are goods, services, and safety related items. Instead of the government creating new taxes and finding new ways to receive money from the people, they should find a way to conserve their money and not spend it on unnecessary things.