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.
I am shocked that the HST will not benefit lower income citizens because I always thought that taxes were meant for services that would benefit the citizens, not businesses and corporations as indicated by your chosen article. I agree with you that it is not fair for people with lower income to have to pay this tax for the same reasons that you suggested. Personally, I do not really like the HST because it is applicable to most things that I buy such as food, clothes, and various school supplies. Will it really be true that there will be positive third party effects for all of us? However, “eventually” sounds like a pretty long time to receive benefits from taxes that are immediately collected after our purchases as a retail sales tax. I understand why this hatred is so intense for so many people, because there are so many services that could be improved with this extra money. It was interesting to find out about this injustice. I think that your article and arguments were compelling and they also had many good points.
ReplyDeleteElena Jiang Su