Thursday, January 13, 2011

HST is not a progressive tax

Article:

http://www.vancouversun.com/news/progressive/3834122/story.html

Summary: 

To say that the harmonized sales tax is disliked is an understatement.  The reason for such hatred is not because it is simply a tax, but because of how it was established and put forward.  The case for such hatred also revolves around  the people who are paying and benefiting from it.  The B.C. government said that they would not bring in the harmonized sales tax during the elections. After the election ended, they went back on their words and brought in the tax.  This enraged many.  Citizens were angered because the revenue raised by this tax would not be going to health care (as was suggested at one point), nor to education or to any of the other social services!  Instead, the money taxed, would be going to big businesses and corporations!  The money would supposedly trickle back down to the citizens eventually but apparently we've been waiting for that to happen to us as well from other taxes that we've paid in the last two or three decades.

Connections:

This article, about the harmonized sales tax, is related to chapter 4 because it is a regressive tax.  A regressive tax, is a tax that takes a larger percentage of the income of low-income people than of high-income people.  The HST applies to food, clothing and shelter and these tend to make up a higher percentage of a lower income consumer's overall budget.  In this case, the tax is applied to everyone whether you have a low income or a high income.  This regressive tax should be removed and replaced with a progressive tax because it will be able to help people with lower incomes. 

Reflections:

I honestly think that the harmonized sales tax should be removed.  I don't think that it is fair for people with a lower income because they aren't even making enough money as it is.  Why should they have to spend even more of their money on this tax that doesn't even go back to them.  Instead, this tax would go to businesses and big corporations!  It's ridiculous.  Why can't the money go to health care (like suggested), education or the other underfunded social services?  Perhaps the government is benefiting from these taxes more than the citizens and that is why they are supporters of this tax.  Perhaps a progressive tax would be more beneficial to everyone.