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

The end of an Echo
The end of an Echo

Invermere Valley Echo shuts down operations in Columbia Valley

Creating a new narrative for Canal Flats

Economic development consultant hired, lists vision for next 90 days

Princeton wildfire phots courtesy of Debbie Lyon.
UPDATE: Crews battle as wildfires rage in B.C. Interior

Crews brace for another day on B.C. firelines as no let up is likely

VIDEO: B.C. wildfires by the numbers
VIDEO: B.C. wildfires by the numbers

Wildfires continue to engulf regions of B.C.’s forests and communities.

Aerial view south of Williams Lake Friday afternoon shows dry lightning storm passing over, leaving fire starts behind. Lightning sparked more than 100 new fires Friday. (Black Press)
VIDEO: More than 180 wildfires burning across B.C.

Firefighters from other provinces called in to assist

DTSS Grad March 2017
DTSS Grad March 2017

DTSS Grad March 2017

59 cats seized in Chase
59 cats seized in Chase

59 neglected and injured cats were seized from a property in Chase

(Flickr/Andreas Eldh)
Soundgarden singer Chris Cornell dead at age 52

The singer/songwriter passed away early Thursday morning in Detroit

Paying tribute to a primeval passage
Paying tribute to a primeval passage

Uninterrupted celebrates the Adams River sockeye run in an extraordinary way.

UPDATE: Pemberton Music Festival cancelled, no automatic refunds
UPDATE: Pemberton Music Festival cancelled, no automatic refunds

In the past, the music festival located in Pemberton drew large crowds last year of 180,000 fans

Photo by: WeissPaarz.com
Medical wait times cost B.C. patients $2,300 each

New Fraser Institute report places B.C. at second worst in costs associated with long wait times

UPDATE: 22 killed at Ariana Grande concert
UPDATE: 22 killed at Ariana Grande concert

Witnesses reported hearing two loud bangs coming from near the arena’s bars at about 10:35 p.m.

A university study finds that about nine per cent of Canada’s Grade 11 and 12 students – roughly 66,000 teens – have driven within an hour of drinking and 9.4 per cent drove after using marijuana.                                 Photo: Now-
Leader file
One in three Canadian high school students have rode with drinking drivers, study reveals

Nearly one in five rode with a driver who’d been smoking pot

Top court to hear federal government’s appeal on residential school records
Top court to hear federal government’s appeal on residential school records

A lower court judge ruled to destroy the stories after 15 years unless consent is given to preserve

Most Read