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)
EDITORIAL: Curtailing attempts at scams

The true total of losses from all scams and frauds could be much higher than the figures on file

People at the beach in front of Discovery Bay Resort on Tuesday, July 14. (Michael Rodriguez - Capital News)
Heat wave forecast for Okanagan-Shuswap

Temperatures are forecast to hit record breaking highs this week

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

The Pierre family, an Indigenous family, once lived in what is now downtown Summerland. Today, Pierre Drive is named in honour of the family. (Photo courtesy of the Summerland Museum)
Pierre family played role in Summerland’s history

Downtown Summerland was once Penticton Indian Reserve #3

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Chilliwack secondary school’s principal is apologizing after a quote equating graduation with the end of slavery in the U.S. was included in the 2020-2021 yearbook. (Screenshot from submitted SnapChat)
B.C. student’s yearbook quote equates grad to end of slavery; principal cites editing error

Black former student ‘disgusted’ as CSS principal apologizes for what is called an editing error

Skeena MLA Ellis Ross. (Photo by Peter Versteege)
BC Liberal leadership candidate condemns ‘senseless violence’ of Okanagan church fires

Skeena MLA Ellis Ross says reconciliation isn’t about revenge for past tragedies

A coroner’s inquest will be taking place at the Capitol Theatre in Port Alberni for the next week. (ELENA RARDON / ALBERNI VALLEY NEWS)
Teen B.C. mom who died following police custody recalled as ‘friend to many’

Police sent Jocelyn George to hospital after intoxication had gone ‘beyond the realm’ of normal detox

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

Photograph By MICHAEL POTESTIO.KTW
Former Kamloops security gaurd wants job back after kicking incident caught on video

Rick Eldridge quit when a video surfaced of him kicking a man outside a facility for homeless

People participated in a walk to honour the 215 children found at a former Kamloops residential school, as well as residential school survivors. (Twila Amato/Black Press Media)
Kelowna marks National Indigenous Peoples’ Day with walk to remember Kamloops 215

“Let’s speak the truth and deal with the truth, and heal.”

COVID-19 daily cases reported to B.C. public health, seven-day moving average to June 17, 2021. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infections drop to 90 on Sunday, 45 Monday

Pandemic spread dwindles as 77% of adults receive vaccine

A home on Cameo Drive sustained major damage due to an early morning fire Monday, June 21. (Roger Knox - Morning Star)
UPDATE: Fire sparked during Vernon home renovation

Heavy black smoke from Cameo Drive home, no one inside

Most Read