HST – Thanks Gord!
I hate to get political but sometimes… there is reason behind it…
March 3rd, 2010 was the day to be in Victoria BC protesting the inclusion of bikes into HST legislation on July 1st 2010. For those out there that don’t know, HST stands for Harmonized sales tax and brings the Provincial Sales Tax (PST at 7%) and Federal Sales Tax(GST at 5%) into a single harmonious chunk that is added to most retail purchases. All that HST is going to do is make cycling less affordable and less attractive to existing and potential cyclists.
As long as I can remember Bicycles, labour, safety equipment and essential parts have been exempt from the PST. As far as I know, bikes have always been PST exempt. Well, the good’ ole days are a thing of the past. When the HST comes into effect, that 7% PST will be tacked onto the GST in a silent, single tax. Prepare to make your wallet a little bit thinner…
With the HST coming into effect, the increased income from taxation is said to be offsetting the rising cost of health care. The cost of health care are rising with the aging Baby Boom and the government is looking for money from the significantly smaller X and Y generations. The costs attributed to an aging population are innevitable, it is the target of the HST that I question. Certain products have been PST exempt for a specific reason. Through tax exemption, environmental impact and low-income households were addressed. With the innitiation of HST, the Campbell Administration is taxing the people that are reducing emissions and living a healthier lifestyle. It is those who rely less on the health care system that will be paying for the gas-guzzling, artery-clogging lineup of people idling at the local McDonald’s Drive-thru.
Lastly, if you are interested in economics, Taxation can be seen as a burden on society limiting GDP and suppressing the economy. Have a quick read about the Dead-Weight-Loss theory.
Here is a video from the rally.
