HST: Going to Cost us more.

[Gt-R R34]

Obvious, but now look @ the numbers done by Stats. Canada.

http://www.vancouversun.com/news/hou...438/story.html

B.C. households to be hit hard by HST, analysis shows


By Andrew A. Duffy , Victoria Times ColonistJune 22, 2010 11:24 AM



An analysis model prepared by Statistics Canada shows that the average B.C. household could take a hit of $521 next year as a result of the HST.
Photograph by: Mark Blinch, ReutersVICTORIA — The average B.C. household could take a hit of $521 to its bottom line next year as a result of the harmonized sales tax, according to a model prepared for the Victoria Times Colonist newspaper by Statistics Canada.


The change could range anywhere from $78 for households with single parents and one child to $801 for a married couple with no children, the figures show.


"There are certainly individuals and households that will feel the impact of this tax," said Dr. Herbert Schuetze, economics professor at the University of Victoria. "For example if you are unattached and 65 years or older we're talking about $262 a year. That's a considerable amount of money for some people."


At the request of the Victoria Times Colonist, Statistics Canada analyzed 15 different household types and 15 different income classifications using its social policy simulation database and model.


The model is used by the federal government and other organizations to analyze financial interactions between government and individuals.


For the HST analysis, it synthesized four databases — the Survey of Household Spending, Survey of Labour and Income Dynamics, EI claimant history and personal income tax returns — to establish a synthetic sample of B.C. households. The weighted total of households in the sample was 1.935 million.


Statistics Canada determined what that synthetic sample spent on various items, its household income and characteristics and then followed the rules of the income tax system and applied all of the rebates, tax credits and rules surrounding the HST and GST to the sample to determine the impact of the tax.


The figures suggest the more money households bring in, the more they will pay out.


For example, a household with an annual income of $40,000 to $50,000 will pay $253 more because of the HST, while households in the $80,000 to $90,000 range will pay $1,128 more annually.


"It looks like families get hit pretty hard," Schuetze said.


Statistics Canada model incorporated a number of initiatives designed to offset the effects of the tax.


Those include a B.C. HST credit of up to $230 annually to low-income households, an increase to the personal tax credit, a rebate for home energy and point-of-sale rebates for a number of other items.


Yet each of the 30 household types for which Statistics Canada provided figures shows some negative impact as a result of the HST.


That does not jibe with material in the March provincial budget, although the parameters for the government's analysis were not the same as those used by Statistics Canada.


The budget documents showed a family of four with $30,000 of income coming out ahead $535 annually, while a family of four with an income of $60,000 would spend an extra $107 a year and a family of four with an income of $90,000 would spend $178.


According to the province, single individuals with an income of $80,000 faced a $314 increase in spending, while single people with $25,000 incomes would end up $2 ahead and a senior couple with an income of $30,000 up $1 annually.


The model Statistics Canada used for the Victoria Times Colonist analysis did not take into account the effect of the HST on housing, which is significant.


Previously new homes were exempt from provincial sales tax. Starting July 1, they will be subject to the HST, although purchasers will be eligible for a rebate on the provincial portion of the tax up to a maximum of $26,250.


The model also assumed all costs to business as well as savings a business might realize as a result of the HST would be passed on to consumers.


But perhaps the largest unknown is behavioural change caused by the new tax.


Schuetze said that is a significant caveat.


"It may be an overestimation of the impact in part because there's no change in consumption assumed here," he said. The Statistics Canada model assumed households would spend as much as they did pre-HST, something that is unlikely to happen.


Indeed dozens of Victoria residents for this series said they would be cutting back on unnecessary expenditures after July 1.


"I may have to make some cutbacks like eating out and I will have to think more before I spend," said Jeff McKay, a 33-year-old executive with Oak Bay Marine Group.


"I will have to be more careful," said Caitlin Flanders, 24, who works for the Queen's Printer. "Going out for coffee or lunches, which I don't do that much anyway, I won't do as often because of that tax."

The “Real” Fight HST Hit List
Here is a list of the items previously exempt from PST that will now have HST applied to them at 7% additional.
Accounting
Admission Fees
Advertising
Airline tickets
Animal feeds (hay is exempt)
Appliance repair & maintenance
Architects
Art Galleries Admission
Attractions / Events
Ballet Lessons
Basic Cable TV
Bicycles
Campgrounds
Cigarettes / Cigars
Catering
Chinese medicine
Clothing –adult sized children
Clothing – used adult (less than $100)
Coffee shops
Commercial Leases
Compost
Computer servicing
Concert Tickets
Condo management fees
Consulting services
Conveyance fees
Delivery Services
Dietary supplements
Dry cleaning
Driving Range fees
Electronics repair
Energy equipment
Esthetician Services
Fast food – Beverages
Fire extinguishers
First aid kits
Fishing charters
Fitness Club memberships
Fitness Trainers
Food producing trees and plants
Freight (in BC)
Funeral services
Golf fees
Grass Cutting
Hair cuts
Hall rental
Health equipment
Helmets
Hockey tickets
Hockey rink rentals
Home appraisals
Home inspections
Home maintenance
Home renovations (Labour)
Horse Boarding
Horse Shows
Horse riding lessons
House Cleaning services
Insulation
Interior design services
Investment Counseling fees
Landscaping
Life jackets
Limousine rentals
Magazines/ newspapers
Marketing services
Massage therapy
Membership fees
Moorage
Museum admissions
Movies / Theatre
Moving Costs
Music MP3 downloads
Naturopathy
New Homes (some rebates applicable)
Nicotine replacements
Non-prescription meds
Painting
Parking
Photography
Postage
Private Bus fares
Printing
Rail travel (originating in BC)
Real estate fees
Reflexology
Rentals for Weddings, Canopy, Tuxedo etc.
Reroofing House
Restaurant meals
RV parks
Safety equipment (Not all safety and Energy Equipment is affected)
School supplies
Shoe repairs
Skiing
Smoke detectors
Snow removal
Solar power
Some groceries
Spa services
Sports Training / Lessons
Storage lockers
Tailoring
Taxi fares
Telephone (Basic Charge for landlines will be affected)
Theatre admissions
Veterinarian
Video downloads
Vitamins
Wedding Planner
Windows (energy star)

Rentals / Strata fees (Though they are HST exempt, most people will notice increases brought on by an increase in maintenance costs and other costs associated with owning Rental and Strata properties)
Used cars / trucks / boats / non-turbine aircraft (Private Sale will have an additional 5% tax, it is not called HST)
Please also note that the reduction on liquor will be made up by simply increasing the mark-up!

[q0192837465]

I think wut's gonna happen is that business will pass on savings to consumers in the beginning as a gimmick to maintian ppl's spending habits. Then those savings will be slowly withdrawn so eventually ppl will consume like the pre-HST days but in effect give businesses a larger margin. In the end consumer will still be shafted but at least they can adapt to a smaller stick before moving up to a bigger stick.

[TheNewGirl]

It depends hugely on the business. I work in a retail company that is reliant on people's discressionary spending. If their pool of "fun" money is limited then we're actually going to have less money in the end.

I don't think that the government is taking into account the huge impact this is going to have on the service and retail sector.

[q0192837465]

Originally Posted by TheNewGirl

It depends hugely on the business. I work in a retail company that is reliant on people's discressionary spending. If their pool of "fun" money is limited then we're actually going to have less money in the end.

I don't think that the government is taking into account the huge impact this is going to have on the service and retail sector.

Small business r gonna choke for sure. But the good thing is that once ppl r used to the idea of HST, they'll start spending again. North American has high consumption and we'r programmed to spend spend spend. As long as business can ride out for first 3-6 months, things should be back to "normal".

my 0.02

[Greenstoner]

more HST news ? fuck, im tired of these crap news... since im living in BC, im just gonna have to deal with it

[mpr]

Or you can do something about it

http://www.saynotohstinbc.ca/

Got few weeks left.

[TheNewGirl]

Originally Posted by mpr

Or you can do something about it

http://www.saynotohstinbc.ca/

Got few weeks left.

I so signed on the first week.

[taylor192]

This was pointed out on another forum:

Even if BC successfully fights the HST, it has already been passed at the federal level and would go through.

[taylor192]

Originally Posted by Gt-R R34

I dare anyone here to name something that will cost more after HST other than eating out, sports and travel. These are all luxuries, which if you can afford them, you can afford to pay tax on them, and I'm surprised were not taxed previously.

These people are idiots and the media just as dumb for reporting it:

[satek]

HST is going to happen if you you like it or not. It sucks donkey dick.

[Yc]

Yes sports and travel could be luxuries, but for ratio sake its far smaller than food comsumption, but gov't cant just tax the rich, b/c they need money from them, so instead they just do it on everyone

[TheNewGirl]

Originally Posted by taylor192

I dare anyone here to name something that will cost more after HST other than eating out, sports and travel. These are all luxuries, which if you can afford them, you can afford to pay tax on them, and I'm surprised were not taxed previously.

These people are idiots and the media just as dumb for reporting it:

My 10 year old daughter already wears women's small clothing.
Are her clothes a luxury? Her shoes?

School supplies were previously exempt. Are those luxuries?

Any groceries beyond absolute staples (bread, milk, eggs, meat, produce, flour) are now taxed with both taxes. Congradulations you want to eat anything prepared at all, need some tomato sauce for your pasta? You pay HST now. Want some spices for your steak? That too.

Summer camp for kids? Sports programs for children? All previously only 5% tax now 12%. That's enough to break the bank and make the differance between parents being able to afford to have thier kids be in sports and not. Especially if they have more then one. And in the land of fat kids, I don't consider swimming lessons and soccar camp luxuries. They're important.

I think the notion that this is a "luxury" tax is absolutely insane. As is the idea that it's only going to cost the average family "$500" a year. I'm looking at $500 between now and September. For one child.

For single folks that might not sound like a lot. For me that's a good chunk of change in the time of year where my expenses are at their highest already.

[q0192837465]

Originally Posted by TheNewGirl

My 10 year old daughter already wears women's small clothing.
Are her clothes a luxury? Her shoes?

School supplies were previously exempt. Are those luxuries?

Any groceries beyond absolute staples (bread, milk, eggs, meat, produce, flour) are now taxed with both taxes. Congradulations you want to eat anything prepared at all, need some tomato sauce for your pasta? You pay HST now. Want some spices for your steak? That too.

Summer camp for kids? Sports programs for children? All previously only 5% tax now 12%. That's enough to break the bank and make the differance between parents being able to afford to have thier kids be in sports and not. Especially if they have more then one. And in the land of fat kids, I don't consider swimming lessons and soccar camp luxuries. They're important.

I think the notion that this is a "luxury" tax is absolutely insane. As is the idea that it's only going to cost the average family "$500" a year. I'm looking at $500 between now and September. For one child.

For single folks that might not sound like a lot. For me that's a good chunk of change in the time of year where my expenses are at their highest already.

I feel you pain.

The other side of the argument is that prices may drop so at the end it evens out. And more income tax credit = more take home money.

It's hard to say right now how it's gonna pan out. We'll be recieving a cheque in July to somewhat offset the initial hit of the tax. Hope things will turn out fine.

[Lomac]

Originally Posted by q0192837465

I feel you pain.

The other side of the argument is that prices may drop so at the end it evens out. And more income tax credit = more take home money.

It's hard to say right now how it's gonna pan out. We'll be recieving a cheque in July to somewhat offset the initial hit of the tax. Hope things will turn out fine.

I know many businesses wont be cutting prices. I work at a major retail chain (albeit not at a salesperson level) and, because the prices are set at a national level in Ontario, we wont be lowering our prices. This is also a company that caters largely to school supplies, which were once tax exempt. And before anyone says anything, only certain school supplies will remain HST exempt. Many items wont be now.

[TheNewGirl]

Unfortunitely, most chains aren't likely to lower their prices. And small businesses are so crunched right now that they need the extra margin to survive. I don't forsee a lot of price decreases with the HST. I hope though that I'm wrong in that assumption.

Are there ANY school supplies that are exempt still? When I was at the HST seminar last week they told me non. Mind you they also said that Natives would retain their exempt status which it was revealed today they will not. So they don't seem to know much at these stupid things.

[orange7]

HST is going to benifit chinese owned restaurants.

[Amuse]

Originally Posted by q0192837465

The other side of the argument is that prices may drop so at the end it evens out.

LOL prices will drop. Yeah right. Not in BC.
When businesses say their stuff will drop in price, what they mean is just a few cents.
Gas prices will go up, not drop.

[q0192837465]

Originally Posted by Amuse

LOL prices will drop. Yeah right. Not in BC.
Gas prices will go up, not drop.

lol, just playing the devil's advocate. I highly doubt businesses will cut their margin for the "greater good" but it's always good to have hope.

Originally Posted by orange7

HST is going to benifit chinese owned restaurants.

sad but true. Cash transactions seem mighty attractive these days.

[Amuse]

Originally Posted by mpr

Or you can do something about it

http://www.saynotohstinbc.ca/

Got few weeks left.

Didn't it go past 10 or 15%? All that effort for nothing? Gordo will just think it's a joke..

[!Yaminashi]

[QUOTE=TheNewGirl;7001258

I don't think that the government is taking into account the huge impact this is going to have on the service and retail sector.[/QUOTE]

Since when does the government take how anything will affect anybody into account?

[StylinRed]

Originally Posted by Amuse

Didn't it go past 10 or 15%? All that effort for nothing? Gordo will just think it's a joke..

their goal right now is like 50% of the voting population



the signatures will force the govt to either repeal the tax or bring it into a referendum

the results of the referendum though can be rejected by the govt

so although Campbell is done.. i don't think the Liberal Party wants to commit political suicide

[q0192837465]

^ if HST is demolished, will we have to pay back the money get got from the Feds?

[raygunpk]

Originally Posted by q0192837465

^ if HST is demolished, will we have to pay back the money get got from the Feds?

no, the government states that we would haBZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

[johny]

Originally Posted by taylor192

I dare anyone here to name something that will cost more after HST other than eating out, sports and travel. These are all luxuries, which if you can afford them, you can afford to pay tax on them, and I'm surprised were not taxed previously.

car repairs, home repairs etc. basicly any labour is now taxed I believe.

[PDA_86]

My parents were talking the other day about raising the prices on our food menu in our shop. Now for a decent lunchbox would cost someone $8.00 instead of $6.50.