Small businessman glad to see HST gone

Editor:

There seems to be quite a storm surrounding the defeat of the HST lately. I was talking to a friend the other day that was quite upset about the result of the referendum. As I don’t think the matter was fully explained or understood by many people in our area I would like to try to explain it as I understand it.

Editor:

There seems to be quite a storm surrounding the defeat of the HST lately. I was talking to a friend the other day that was quite upset about the result of the referendum. As I don’t think the matter was fully explained or understood by many people in our area I would like to try to explain it as I understand it.

I have a small business and have been dealing with the GST for some time. The HST has similar rules to the GST. In effect the business owner becomes the Tax collector both GST and PST, however the rules are different between the two taxes. The GST rules allow the business to deduct the amount of GST that they paid out, (for goods and services except labour), in order to conduct their business. Business’s would deduct this amount from the amount of tax they have collected. This results in a zero balance of GST paid out to conduct business.

The PST does not have the same rules. What a business collects is what it pays to the Province. There is no rebate.

With the HST the business would work out the same as the GST. Business could reduce the amount that was collected by the amount that it paid out to conduct business, except labour, thus giving it a zero balance on HST paid out.

Prior to the HST being introduced the seven per cent PST would go to the province but now with the HST a portion of the seven per cent is paid to business to reduce their HST paid out to ZERO. Plus many things that were exempt under the PST (children’s clothes, school supplies, etc.) are no longer exempt under the HST. This has created a larger sales tax base resulting in millions more tax dollars collected for the Government.

This tax is beneficial to business, creating a business climate with no sales tax on costs to do business. In some cases this could total millions.

This is how all the sales tax burden shifts onto the working men and woman. And as we all know the working man and woman pays 12 per cent sales tax while business pays nothing in sales tax. When you hear people talking about this as an unfair tax, this is what they are talking about.

I’ve heard the argument about how many will lose their jobs and how the economy will suffer with the defeat of the HST. But those comments are coming from the business’s and economists that are benefiting from the HST and simply do not want this benefit to end. I believe that this is nothing more than scare tactics.

I personally, don’t think we should be spending our tax money to subsidize business while social programs, health and education suffer.

I was happy to see the HST defeated.

Joe Marvici

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Amanda Parsons, a registered nurse on staff at the Northwood Care facility, prepares a dose of the Moderna vaccine in Halifax on Monday, Jan. 11, 2021. Almost two in three Canadians surveyed recently said they trust COVID-19 vaccines to be both safe and effective. THE CANADIAN PRESS/Andrew Vaughan
Northern Health to open 30 COVID vaccine clinics for oldest residents, Indigenous seniors

Health authority says it plans to vaccinate nearly 15,000 people in Phase Two

Prince Rupert’s Bobby Brown celebrated his 95th birthday milestone on March 5 with family across the country in an online celebration. (Photo: supplied by Jodi Brown)
Prince Rupert man celebrates 95th birthday milestone online

Five generations come together COVID-19 style in Prince Rupert to say “Happy Birthday”

Main door at Cranes Crossing, Prince Rupert’s homeless shelter, on March 5. Northern Health issued a public notice of potential exposure occurring at the shelter between Feb. 22 and 24. (Photo: K-J Millar/The Northern View)
COVID-19 Public Exposure Notice issued for Prince Rupert’s homeless shelter

Northern Health said possible exposure between Feb. 22 and 24

Air Canada cancelled flights to Prince Regional Airport on Jan. 23, 2021 due to loss of ridership during COVID-19. An Air Canada Rouge takes off from Montreal in March 20, 2020. (THE CANADIAN PRESS/Graham Hughes)
BC Liberals call for immediate action and support for B.C. airports

Prince Rupert Regional Airport and others across the province struggle with COVID-19 effects

Paul Williams rector of St. Andrews Cathedral in Prince Rupert sits in front of the 95-year-old pipe organ on March 5. The church has put out a community call for volunteers to play the instrument to keep it fresh and operational. (Photo: K-J Millar/The Northern View)
St. Andrews Cathedral pipe organ needs players to make it sing

Prince Rupert volunteers who want to practice their playing skills are welcome

The Pfizer-BioNTech COVID-19 vaccine is administered to a personal support worker at the Ottawa Hospital on Tuesday, Dec. 15, 2020 in Ottawa. Doctors in Alberta have signed an open letter asking for prioritized vaccination of health-care staff who work directly with patients on dedicated COVID-19 units. THE CANADIAN PRESS/Adrian Wyld
COVID vaccines for seniors in B.C.: Here’s how to sign up

Seniors 90+, Indigenous seniors 65+ and Indigenous Elders can book starting March 8

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Vaccine hesitancy decreases in B.C. as mass immunizations set to begin: poll

Two-thirds of British Columbians, and Canadians, would get the vaccine as soon as possible

Software engineer Shaimma Yehia, 40, has been forced to re-skill during the COVID-19 pandemic after more than six years of unsuccessfully applying for jobs in B.C.’s tech industry. (Submitted photo/Shaimma Yehia)
Why skilled immigrant women continue to be shut out of B.C.’s booming tech sector

Experienced software engineer Shaimma Yehia, 40, hasn’t found a job since she migrated to Canada 6 years ago

Ron Sivorot, business director at Kennametal’s Langford site, the Greater Victoria facility that made a component being used on NASA’s Perseverance rover on Mars. (Jake Romphf, Black Press Media)
NASA’s Perseverance Mars rover digging in with B.C.-made part

Kennametal’s Langford plant’s tooth blank is helping the rover’s drill collect rock cores

A woman walks through Toronto’s financial district on Monday, July 30, 2018. A new poll suggests most Canadians believe there’s still a long way to go to achieve gender equality in this country. THE CANADIAN PRESS/Graeme Roy
Canadians, especially women, say gender equality not achieved in Canada: Poll

Poll results themselves underscore the challenge, with more men believing equality had been achieved

This image provided by Harpo Productions shows Meghan, The Duchess of Sussex, left, in conversation with Oprah Winfrey. (Joe Pugliese/Harpo Productions via AP)
Race, title and anguish: Meghan and Harry explain royal rift

Meghan said she struggled with concerns within the royal family about her son’s skin colour

Const. Allan Young. Photo: Abbotsford Police Department
Manslaughter charge laid in Nelson death of Abbotsford police officer

Allan Young died after an incident in downtown Nelson last summer

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

Pictures and notes in from friends and classmates make up a memorial in support and memory of Aubrey Berry, 4, and her sister Chloe, 6, during a vigil held at Willows Beach in Oak Bay, B.C., on December 30, 2017. THE CANADIAN PRESS/Chad Hipolito
Mother of slain daughters supports recent changes to Canada’s Divorce Act

Sarah Cotton-Elliott said she believed her children took a back seat to arranging equal parenting

Most Read