One of the provincial government’s advertisements to try and get us to change our minds on the HST is focused on the reduction of the tax from 12 per cent to 10 per cent. But, do the people realize that you will not receive the $120 annual savings for seven years?
The Liberal government is telling us that when the HST is at 10 per cent all families in BC will save $120, so here is the breakdown:
From July 1, 2010 to June 30, 2011 – HST as is, is costing each family in BC an extra $120 (12 per cent HST).
From July 1, 2011 to June 30, 2012 – HST will cost each family in BC an extra $120 (12 per cent HST).
From July 1, 2012 to June 30, 2013 – HST will cost each family in BC an extra $60 (11 per cent HST).
From July 1, 2013 to june 30, 2014 – HST will cost each family in BC an extra $60 (11 per cent HST).
So, the HST will cost each BC family an additional $360 as of June 30, 2014.
Then on July 1, 2014 the tax will be at 10 percent at which point each BC family will start saving $120 – according Liberal government numbers.
That means it will take until June 30, 2017 until each BC family has made back the $360 it costs them from July 1, 2010 to June 30, 2014. Then at this point, on July 1, 2017, all families in BC will begin saving $120 a year. Which means you will not actually save this $120 until June 30, 2018. Seven years from now.
Do you want to wait seven years until July 1, 2018 to save on the HST or would you like to have that money in your pocket when we switch back to the old tax system?
Vote yes to scrap the HST.