Stick men, straw men debate HST

Finance Minister Kevin Falcon unveils the $5 million advertising campaign that begins this month.

Finance Minister Kevin Falcon unveils the $5 million advertising campaign that begins this month.

VICTORIA – By now you’ve probably seen part of the B.C. government’s “stick man” ad campaign to raise awareness of the harmonized sales tax.

Stick men, or rather stick persons, sort out conflicting claims about the tax by going to the B.C. government’s website  to get an accurate summary of what is and isn’t costing them more.

Later versions will no doubt feature stick persons checking their mail for brochures offering arguments for and against the HST, and of course, those all-important mail-in ballots that will arrive in June.

This is an urgent pre-requisite to an informed vote. Anyone who listens in to a telephone town hall or phone-in show, or gets reader feedback such as I receive, knows that the basic facts are still widely misunderstood.

So what does the NDP opposition focus on? The ads cost $5 million, grumbles NDP finance critic Bruce Ralston. Add that to town halls and mailers and the referendum funding boils down to $7 million for pro-HST and a mere $250,000 for the FightHST effort.

This is a classic “straw man” argument, where one sets up a false premise and then knocks it down. The ads do not advocate, they merely inform.

Stikine MLA Doug Donaldson propped up the NDP’s oldest scarecrow, that big “Liberal donor corporations” are the main beneficiaries of the HST. This is a vital point for rural B.C., which depends on resource industries with huge machinery investments, and he has it exactly wrong.

In fact the entire ‘big business benefits most from HST’ narrative is false.

Vancouver tax lawyer David Robertson points out that this is one of the “myths and misrepresentations” propagated by Bill Vander Zalm, who has effectively set NDP tax policy since their limping retreat on the carbon tax.

In 24 pages, Robertson has written the clearest analysis I’ve seen so far, including a thorough demolition of Vander Zalm’s crude scare campaign known as FightHST, which has singled out banks and large resource companies.

Robertson notes that banks are actually worse off.

“…unlike most businesses, banks, financial institutions and insurance companies cannot recover GST/HST they pay on expenses,” he writes. They actually pay more under HST than they did under the old provincial sales tax (PST).

As for FightHST’s other specified villains, “large corporations” and “large resource companies,” their machinery and production equipment were long ago exempted from sales tax. No change there.

“What the PST legislation did not contain were PST exemptions aimed specifically at small, independent businesses,” Robertson writes.

“So construction workers like welders, plumbers, electricians and other tradespersons had to pay an additional seven per cent PST on their work trucks, tools and equipment that they used to earn a living; retailers and corner store operators had to pay an additional seven per cent on their shelving, refrigerators and cash registers; accountants and other professionals had to pay PST on their office furniture, computers and software; truckers had to pay an additional seven per cent PST on their truck tractors and trailers …” and so forth.

This is what the HST fixes.

Obviously, Big Labour doesn’t like all these independent contractors. Therefore the NDP must also “fight” HST.

I’ve mentioned before that the NDP-Vander Zalm axis of nonsense wants to deprive the poor of a modest tax shift in their favour, paid for by voluntary purchases of more affluent consumers.

I’ve talked about the trend towards self-employment and small business as the Canadian economy adapts in a fast-changing world. You may not like that trend, and you may wish that everyone could have a union job with an employer-subsidized pension.

That’s not what is happening today.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalnews.com

tfletcher@blackpress.ca

twitter.com/tomfletcherbc

Just Posted

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

The remains of the Mid-Island Co-op in Whiskey Creek along the Alberni Highway on Friday, June 18, after a blaze the day before devastated the gas station. (Michael Briones photo)
VIDEO: Whiskey Creek gas station destroyed by fire after camper van explosion

Nine fire departments responded to the incident, no injuries reported

Things are looking up for Vancouver Island as zero COVID-19 cases have been reported for the first time since October. THE CANADIAN PRESS/Darryl Dyck
Island records zero new COVID-19 cases for the first time since October

For the first time since October, the province is reporting zero new… Continue reading

District of Lantzville Mayor Mark Swain, left, and Snaw-Naw-As Chief Gordon Edwards sign a memorandum of understanding outside Snaw-Naw-As Market on Friday, June 18. (Greg Sakaki/News Bulletin)
Lantzville and Snaw-Naw-As sign memorandum of understanding

District and First Nation create joint working group

John Furlong told the Vancouver Board of Trade on Feb. 20, 2020 that he thinks the city could and should bid for the 2030 Winter Games. (CP photo)
A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Karl and Stephanie Ann Johanson were thrilled to spot a pair of Sandhill Cranes in the Panama Flats this month, an unusual appearance for such birds. (Photo by Stephanie Ann Johanson)
WATCH: Sandhill cranes an unusual, joyful sight in South Island parkland

These birds don’t often touch down on their way between northern B.C. and Mexico

Police are asking for public assistance in locating Anthony Graham who has been charged with the murders of Kamloops brothers Carlo and Erick Fryer. (RCMP photo)
2 charged, suspect at large in killings of B.C. brothers linked to gang activity: RCMP

Kamloops brothers Erick and Carlo Fryer were found deceased in May on a remote Okanagan road

(V.I. Trail/Google Maps)
Now 90% complete, Vancouver Island trail forges new funding parnership

Victoria Foundation takes on Vancouver Island Trail Association; fund valued at $40,000

Albert Health Minister Tyler Shandro and Alberta Premier Jason Kenney unveil an opening sign after speaking about the Open for Summer Plan and next steps in the COVID-19 vaccine rollout, in Edmonton, Friday, June 18, 2021. THE CANADIAN PRESS/Jason Franson
Alberta 1st province in Canada to lift all COVID-19 public health restrictions

70.2% of eligible citizens 12 and older in the province have received a dose of the vaccine

Fraser Health registered nurse Ramn Manan draws a dose of the Pfizer COVID-19 vaccine into a syringe at a walk-up vaccination clinic at Bear Creek Park, in Surrey, B.C., on Monday, May 17, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Honour our fathers’ with COVID-19 vaccine protection, B.C. urges

109 new cases Friday, 75 per cent of 12 and up immunized

Freighters have becomd abundant in the Trincomali Channel on the east side of Thetis Island.
Nanaimo ponders taking on waste from nearby anchored freighters

Vancouver-based Tymac petitioning the Regional District of Nanaimo to accept waste at its landfill

(Paul Henderson/ Chilliwack Progress)
Trutch Avenue in Chilliwack to be renamed to remove racist taint

New name to have Indigenous significance as Chilliwack takes new step toward reconciliation

Most Read