Watch out for the Zalm

The harmonized sales tax begins to be collected in BC tomorrow. It has shaken up the politics of this province. My thoughts:

The government deserves to be punished for making a major policy change two months after campaigning with a different position. I don't believe for a minute Colin Hansen's timeline. Clearly the BC government had considered this change before the election. Check Hansen's laughable answer on a Globe and Mail Q&A session several weeks back. However, the reaction to this tax could be worse than the actual policy. Be careful what you wish for progressives: especially when Bill Vander Zalm is involved.

With tax, I see two questions: Is it better to tax consumption or income; and , is it fairer to tax businesses or individuals?

Start with an assumption that tax expenditures will stay relatively stable in order to maintain our current standard of public services. The population is getting older. With the proportion of retirees increasing there will be less income tax revenue to support this standard.

We need consumption taxes. Yes, they are regressive, but choosing which items are of benefit to society (hence no tax) seems arbitrary. Provide a relief to lower income tax brackets and leave it simple. It's complicated enough dealing with food

More and more people follow paths where they are both employees and contractors. Nothing drives nuts me more than paying a tax as a contractor but not being able to claim the cost of it toward the revenue I've earned.

The debate over the proportion of taxes paid by individuals or corporations / private businesses is tougher. Not going to try to cover it here - obviously the strength of the anti-HST argument from the left.

The benefits of this tax are there: one level of government will collect and run the tax. Imagine for a second that we had two income tax forms to fill out as individuals?

And the Feds are paying BC to do this... No wonder BC took the money. Close the PST office and turn out the lights. Fundamentally, there is one less administrative task removed from all levels of government. Woohoo!

The Recall Campaigns

Unhinging the Vancouver elite from power may be a good thing, but we will get a re-calibrated right-wing party that loses its urban influence, at least temporarily. It's a good thing to clean the attic for any jurisdiction, party, etc.... Yes, but the risks to social values that many hold dear in this city (Vancouver) would be large.

Bill Vander Zalm. Blatant crookedness that would make the mythical Chicago ward chief smile. I mean: read the Fantasy Garden and Expo land Hughes report. These are dealt with in the public record. He has fundamentalist views that contradict established scientific knowledge. He does not support access to abortion at a level that many see as a fundamental right (including me).

I feel for restaurants in the East Kootenay and along the Alberta border that are going to get hammered by the HST. I predict the petition will pass. It's the recall campaigns that are going to be scarier...