Quote:
Originally Posted by TheNewGirl
So. Pigs fly.
As a consumer I loathe and hate the HST, I fall into the very small margin of people though that's hit the worst by it though. As someone who does the books for small business though... I have to admit (grudgingly), it's made life easier and more importantly, it has, I admit, positively impacted the financial well being of the companies I work for. (Let it never be said that I can't eat crow now and then).
Now. I don't think the system is flawless. There are big glaring differences between it's stated goals and how it functions that most people (unless they're doing book keeping or accounting for a large company, probably aren't aware of). And I still think things need to be addressed about these issues, but with the exception of claimable caps for large corps, I think they're largely PR problems on the government's part.
The government said this was going to be a revenue neutral tax... it turns out that's untrue. But unlike our previous government, Christie Clark's actually asking people what they want to do with that revenue (I'm pretty sure there's still a thing for feedback on the provincial gov's web site if you haven't already sent in some input but even better, take 10 minutes to write an email to your MLA).
Any how, recently I was looking over some of the new studies that have come out about the HST, which I hope everyone else will do the same.
Someone sent me this video which while it's about 15 minutes long, has some useful information. Now, the guy's clearly biased so, critical thinking caps on, but he does make some very good points.
http://www.youtube.com/watch?v=nZXu3...layer_embedded |
That video has its own bias thats a little disturbing too.
Like when he talks about people buying new homes and how no body goes and buys a brand new home or something to that affect, so discussing the tax ramifications are useless.
Um, condos? People, regular people buy them all the time. Shit, we bought a shrink wrapped townhouse and we're broke.
Its at 8:23.
And to add: Of course its not revenue neutral! I'm a contractor. Used to charge 5% on top for GST, now charge 12%...more than double.
Funny thing is...I look at the sub-total as my number, but my clients look at Total. My business has not changed. I don't get to keep any tax. Yes, I get to rebate my HST on inputs, but realistically, all that is is pre-paying the HST that I submit. I never look at the final total. Not my money. But its my clients money, and all they look at is how much the check is.
So this wonderful change that is supposed to make me all kinds of money? Nope.
Yes, I don't have to eat PST anymore. Cool. Let's look at that:
Small job...$5000...plus tax.
Old system:
sub-$5000
GST-250
Total-5250
Let's say my materials are 35%. And lets assume I paid PST on everything.
materials-1750
PST-122.5
So I "ate" $122.5. Technically, I passed it on to my client, but its hard to say, because of the nature of a quoted job.
New system:
sub-5000
HST-600
Total-$5600
Same materials: 1750
No PST(charged hst of $210, but claim it back)
So, I "save" $122.50, but it costs my client an extra $350! That can be the difference in whether they do the project or not.
Thanks governments of BC and Canada. Stop by and help my business anytime!