Washington State, for your HST rebate (sort of)

[Mike]

Found this online today. For those of us Canadians planning to travel in the US
northwest, bring suitable residency id with you and get a tax break. I'd never
heard of it before. No idea what other US States might have the same deal for us.
Original article is gone.
Synopsis: if you tell people in Washington State you're Canadian, some places won't charge
you state sales tax.

[markopolo]

That's interesting.

Funny though. PST was the reason BC and Ontario didn't qualify. But when you bury the PST in HST it's all good.

[Mike]

Yes, it's a puzzling little technicality.
Maybe in the fall, if we head west, we'll check it out.
Here in Ontario, we return the favour, and let out of province people drive free on the 407 ETR.
Apparently, the cost of tracking down the "aliens" isn't worth the effort, so they drive free.

Speaking of HST, would you say you see an improvement in the general economy of the Maritimes because of it?
You've been there a few months now, and had a chance to survey the landscape. Ours kicks in on Canada Day.
As a lay person, does it appear that business is passing the savings on the removal of their hidden business tax
to the consumers? Are new businesses popping up in the area, as a result of the improved tax situation for them?
I got into a HST versus the old way with a local editor of a small local newspaper. He's a Lib I took the opposite
position, because it's what I believe. He quoted economists as expert witnesses. I said it was a tax grab, and will
make the average consumer pay more for things for which there isn't any real competition, and pricing doesn't
need to be reduced to "sell product" (heating, hydro, things you have to buy).
I'm just asking for opinions, nothing more. I'll neither criticize or condone whatever you have to say,
I just want a perspective from someone exposed to it already (an HST system).
I also will not be offended if you'd rather not respond openly.

[markopolo]

Mike - I'd say you won that debate.

The Ontario government had a recent report that confirms that people in upper and middle income tax brackets will pay more. Low income earners will pay less. But that is including the rebate and the assumption that 90% of businesses will pass on the savings to customers if I read the article in the Globe and Mail correctly. 90% .................

BC tried to promote it as "revenue neutral". It would be better to say "We have to introduce this new tax because we expect a revenue shortfall. You'll pay a bit more but we'll open some senior care facility beds etc".

I can't comment much on its effect on the Maritimes. I just don't know. We'd have to compare Canadian Tire or Sears flyer ads to see if there is much of a price difference between provinces - I kinda doubt it. In my newcomer's eyes I have noticed a real amount of "joie de vivre" here in New Brunswick. People are enjoying themselves. Restaurants are busy etc. You live once so you better enjoy it. I doubt that HST slowed many people down.

Taxes are a reality. If we want services we have to pay taxes.

Bermuda doesn't have income tax. No income tax. Consumption taxes (duties) is where the revenue comes from. I always thought that is fair. The individual can "control" how much tax they pay. Buy less stuff, pay less tax. With no income tax you actually have money to buy stuff. Such a simple system. Imagine no income tax code...................

[Mike]

Thanks for the comments and interpretation.
I've thought consumption was a fair tax method, providing you could pick and choose what and where
you consumed. Much of the stuff added to the "now taxable" list in Ontario are "must have" things,
so there will be an overall tax revenue increase. I wonder how much more of an underground
economy the new taxes will create, since businesses won't be as taxed on more raw materials
and goods/services they formerly needed to use to create their services and products? Maybe the
amount of scrutiny, at the entry point, will be reduced. The focus will be at the retail level.
With all the sin taxes added over the years, our provincial govenments are really pushing to reduce
the contraband economy for things like smokes and booze. Maybe there will be a whole new list of
contraband for sale out of people's trunks and garages?
I think the new jobs that are supposed to be spawned from this (600,000 over 10 years?) isn't really
a lot in the grand scheme of things, but I read somewhere that many of them will be government
revenue/tax collection/processing related. Not much was projected in the private sector.I think they
already transferred a few thousand jobs from the Province's tax departments to the Federal tax
departments. And, gave them severances, between name changes!!!
That's why I asked about new businesses popping up in your area. Or new factories or other commercial
enterprises.
I guess we'll find out pretty quickly after July 1. I wonder how many people really understand the
potential impact (or care)?

[markopolo]

Annual HST hit for average B.C. household is $521

Read more: http://www.vancouversun.com/business/An ... story.html

Could be "$801 for a married couple with no children".

----------------
As our overall individual tax bills inevitably increase each year I expect to see increased scrutiny of governmental spending by taxpayers. Waste will be viewed with disappointment by some and outrage by others. We will probably see an increase of the usage of the word "accountable" or "accountability" in the media.

I know there is no such thing as a free lunch. I'd surely like to see the potholes in the roads fixed around here and maybe a medical heart attack specialist unit closer than one hour away......... It all costs money, I know. I'll pay my share. Just don't waste it.

[Mike]

I think the Ontario projections are about the same. The only difference is that we
got financial assistance, in advance, to help us deal with a "revenue neutral" tax.
Interesting that the Premier is now appearing on a TV ad "selling" the HST as being
necessary to create jobs and improve Ontario's future. This is the same guy
that has misled ("lied to" is such a harsh phrase ) the people of our province for
over 7 years now, has ignored or distanced himself from just about every government
related scandal, and has had to retract several policy proposals when the backlash
appeared to be insurmountable. And we're supposed to believe him now?
Apples to apples, it is about not wasting it like you've said. On the OLG, or E-Health Ontario, etc.....
As for increased scrutiny, not sure how it works in BC, but in Ontario, when the government
appointed Ombudsman exposes your administration for what it is, you simply replace him
with someone more sympathetic, or make his remaining tenure as uncomfortable as
possible. He survived an apparent smear campaign and was retained recently for
6 more months, as a way of appeasing those who saw his treatment as somewhat
inappropriate. More recently it was recommended he be retained for another 5 year term.
http://www.thestar.com/news/ontario/art ... udsman-job

I hope that whoever the next guy/gal is to run the show here, has the integrity to
fine tune the scope of the HST tax a bit, to help reduce the impact to those groups like
senior citizens, and others who are no longer primarily concerned about job creation,
but more intereted in not having their retirement incomes reduced even further by
withering taxation. It's highly unlikely that it could be reversed or completely removed
with any sort of ease by anyone, assuming a change of government.