Two reports released today offer a contradictory picture of how the HST will affect the average B.C. family.
The Fraser Institute claims that most households will be better off under the new harmonized sales tax, and will pay between $72 and $403 in additional taxes each year. But those households earning less than $80,000 per year will earn back most of that in income tax and HST credits, according to the report, meaning the average family will pay about $44 more.
"Compare that to the $37,000 or so in taxes they are already paying, and it's a wash for the average Canadian family," Niels Veldhuis of the Fraser Institute told The Globe and Mail.
But compared to a model developed by Statistics Canada, at the request of the Victoria Times-Colonist, the average household can expect to pay an additional $521 under the new tax.
According to the Times-Colonist "a household with an annual income of $40,000 to $50,000 will pay $253 more because of the HST, while households in the $80,000 to $90,000 range will pay $1,128 more annually."
To arrive at those figures, Statistics Canada analysed 15 household types and 15 income classifications using a social policy simulations database and model, and applied all of the rebates, tax credits and rules of the HST and GST.
"There are certainly individuals and households that will feel the impact of this tax," Herbert Schuetze, economics professor at the University of Victoria, told the Times Colonist. "For example, if you are unattached and 65 years or older we're talking about $262 a year. That's a considerable amount of money for some people."
Colleen Kimmett reports for The Tyee.
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sunshine coast girl
1 year ago
Fight HST has been saying all along
that it will cost each British Columbian approx. $500 per year. Where's that misinformation coming from now, Mr. Hansen?
happy
1 year ago
sun girl
This says average household. Not each individual.
Before I get flamed on I support the anti-HST petition. But I believe Zalm plays fast and loose with facts...he does have history.
telus employee
1 year ago
THE TRUTH ABOUT THE HST
If the Fraser Institute, the BC Libs and Big business say the HST is good for us, there can only be one conclusion:
The HST will cost average and low income people a lot of money.
Toobad
1 year ago
Fraser institute and Michael Levy
Michael Levy gets caught lying on CKNW...err I mean stating false facts trying to defend the Fraser institute and MISREPRESENT the STATS Canada report!
Enjoy the read.
http://powellriverpersuader.blogspot.com/2010/06/michael-levy-lies-on-cknw-and-was.html
Cheers
offended
1 year ago
Cancelling some cable & phone services,
Cutting back on going out, spending unnecessarily.
I can do that; I don't have family to worry about. What about those that do?
I am on a fixed income. Too rich ($36K a year) to get a HST rebate (which is the same as the GST rebate) and too poor to have the personal tax exemption make much of a difference.
***** me, and other other folks in BC that can't afford this so that Alcan can sell their aluminum in China.
Skywalker
1 year ago
Right on telus employee.
The day I pay any attention to what the Fraser Institute says is the day I hope someone has the decency to put me out of my misery. If the say it is good, I know it is a bad deal for any of us.
realisticman
1 year ago
It's a Tragedy
We love to consume 'stuff'. It's a double-whammy. I'm going to have to cut back on my Doritos, my burgers and my massage therapy. And, only a million of us are eligible for the rebates.
fanshaw
1 year ago
Simple math
If the HST is a transfer of $1.6 billion/year from business to consumers and there are 4.2 million 'consumers' then they pay $380.00 each. Over simple, I know, but you can take it from there. If low income earners pay no more than they do now, middle and higher income earners will be paying more than $380.00. Factor in 400,000 kids under 10 with negligible disposable income and it goes up again.
Toobad
1 year ago
@Fanshaw
Your simple math is wrong, the Tax Shift is $1.9 billion per year, the bribe from ottawa(with our own money)is $1.6 billion.
Average taxpayers with be out a $1000 dollars or more..Statistics Canada based their findings on business returning every dollar of savings to consumers, that won`t happen.
Rman, half of those rebates will be discounted, in other words they won`t get any where near $230 dollars per year.
"Recall in the Fall"
sunshine coast girl
1 year ago
see this everyone?
http://www.timescolonist.com/news/Duelling+reports+economists+back+analysis+done+Times+Colonist/3188262/story.html
DJT
1 year ago
Gee, let me see. Do I
Gee, let me see. Do I believe Stats Can or do I believe the Libs, the Fraser Institute, or anyone even remotely involved with either of those two. Hmmm...
CanadianLatitude
1 year ago
Fraser Institute is a joke
Fraser Institute is a joke and nothing but a Campbell cheerleader...Remember this when you vote next time both federally and provincially..Gordo, Chairman Harper and Iggy all supported this.
jim1966
1 year ago
Geez Folks, Look At The Source Of This Report
This to me has never been about the pro's or the con's of the HST. We as an electorate were lied to, plain and simple and via this report that lie is being repeated and sadly at our expense. Recall is the one way that this government can be stopped. As a low income earner I can honestly say that the HST rebate is a "Drop in the bucket" attempt and nothing more. The HST/GST credit is managed by Ottawa and not BC. I know a lot of people who will alter their budgets and that means more cuts. Eventually if this government is allowed to proceed unchecked I and others will be too poor to maintain even a poor so called "lifestyle" and worse is a lot more people will end up in the hospital, which will cost us all more down the road. It's simple folks Campbell has gutted BC social programs and made said programs even worse or for some unattainable. Sad state when we as society tolerate this kind of abuse.
Skywalker
1 year ago
How often has....
....Statscan lied to the public? How often have the Campbell liberals lied? I don't even have to think about that one.