Does being progressive mean opposing the HST? Krishna Pendakur, an SFU professor of economics whose web page says he supports "old lefty" principles, believes people with his politics "should love" the HST. But his opinion piece making that argument has drawn a rebutting online comment from Seth Klein, director of the left-leaning Canadian Centre for Policy Alternatives.

In his piece, published today on The Tyee, Pendakur gives four reasons the HST is a better tax for accomplishing aims of the left. "More public expenditure requires more taxation. All the social expenditures that we want for our families and our children -- more nurses and GPs, smaller classrooms, better universities, more parks, and so on -- need money. The HST is a good way to raise money."

To those who argue the HST is regressive and unfairly burdens lower income consumers, Pendakur says that can be solved through targeted tax credits given to those most needy. To those who say the HST will raise the prices on myriad goods and services, Pendakur says the research convinces him most companies will pass on their tax savings in the form of lower prices.

Responding to a huge public backlash against the tax that drove former premier Gordon Campbell from office, his replacement, Premier Christy Clark, has proposed cutting the 12 per cent HST rate to 11 and then 10 per cent over the next three years. British Columbians are now in the process of voting by mail-in ballot on whether to keep or scrap the HST.

Rather than vote away the HST based on what Premier Clark is offering, Pendakur argues: "When it comes to the question of what rate to charge, the left should be clamouring for higher rates, not the lower rates (10 per cent instead of 12 per cent) recently promised by the BC Liberals. 'We demand a 15 per cent HST!'"

But not long after Pendakur's opinion piece was published on The Tyee, the CCPA's Klein hopped on the comments thread after the article to post a rebuttal he titled "If only they would listen."

"I don't disagree with much of what Krishna says," writes Klein. "Indeed, ever since the HST was introduced, our economists have recommended something similar. Specifically, they have noted the economic benefits of an HST (albeit with the caveat that these benefits have been grossly overstated by the HST's proponents), but highlighted the design flaws in B.C.'s HST, noting in particular that the low-income credit is inadequate -- it cuts out too soon and too quickly. And our economists have urged the government to make reforms along the lines of what Krishna proposes.

"The problem is that, for two years, the government simply refused to listen. And now, when they finally admit that changes are needed, their proposed "fix" blows a giant hole in the budget (as I explained here.)

"And therein is the problem with Krishna's argument -- it exists in a parallel universe from the realities of how this debate is unfolding in the real world of politics. The government is not entertaining the reforms Krishna is recommending. Rather, they are moving in the opposite direction. Sadly, in so doing, they make this tax unworthy.

"A final point regarding Krishna's contention that virtually all the tax savings to business will eventually be passed on to consumers. Some yes, particularly in very competitive local markets. But much will not. In some less competitive cases, businesses will simply happily pocket the savings. And in other cases (particularly for the large resource corporations who sell commodities into foreign markets), the savings will go to consumers outside B.C. We need to follow the money here -- businesses would not be fighting so hard to keep the HST if they merely intended to pass all the savings back to consumers."

Pendakur is Co-Director of Metropolis British Columbia (MBC), Center of Excellence for Research on Immigration and Diversity. On his web page he says, "My life-goals are sort of 'old lefty': help the poor, redistribute income, create a society where everyone has the chance to be happy."

To read Pendakur's Tyee piece citing four reasons he thinks people with left-leaning politics should support the HST, go here.

David Beers is editor of The Tyee.