B.C.’s has one of the highest overall tax rates on new investment in Canada and the developed world.
Well-designed consumption taxes, of which sales taxes are one type, are much less damaging.
To eliminate the deficit, Alberta's government should restrain spending.
In the recent Speech from the Throne, the federal government announced a variety of initiatives but the one that drew much attention was its ostensible consumer-friendly tack.
On some consumer issues, the Conservative government has the right instincts, promoting competition within the cellphone sector for example, even if its approach to the upcoming wireless spectrum auction is flawed.
In other places, the Harper governments predisposition is counter-productive.
For instance, ponder the federal governments desire to micromanage how airlines double-book seats.
April 1st is an important day for British Columbians and we're not referring to the Easter long weekend. On that day BC officially scraps the HST and in one fell swoop restores the old Provincial Sales Tax system.
But moving back to the PST will cause harm to the provincial economy and BC families will lose out on the increased prosperity and jobs that the HST would have encouraged. Since our province will be poorer with the PST, it falls on our political leaders to take action to lessen the impact.
Last month, British Columbias Expert Panel on Business Taxation delivered its much anticipated final report (at least among us policy wonks). Unfortunately, the report garnered little media attention and failed to spark much debate about BCs tax competitiveness.
The Expert Panel was appointed early this year by then-Finance Minister Kevin Falcon; it was made up of a cross-section of people from business, academia, and government to provide recommendations on how BCs business taxes could be made more competitive given the return of the PST in 2013.
When the PST rears its ugly head on April 1, 2013, British Columbias tax competitiveness will be dealt a major blow as the cost of the investing in the province increases dramatically. Unfortunately, the well-being of BC families will be negatively affected in many ways none more important than the adverse impact the PST will have on investment in machinery, equipment, and technology the backbone of a healthy economy.
With Labour Day just around the corner and British Columbia's unemployment rate at 7.3 per cent, Premier Christy Clark's promise of a jobs agenda is welcome news. Unfortunately, her actions haven't backed up her words.
With the defeat of the harmonized sales tax (HST), B.C.s competitiveness will suffer a crushing blow, as the province experiences a rebirth of the provincial sales tax (PST). The unfortunate reality is that restoring the PST will lead to a reduction in investment and job creation. It now falls on Premier Christy Clark and her colleagues to show leadership and put forth a tax plan to mitigate the unrealized economic gains that the HST would have encouraged.