Family Activities and HST in BC
[contributed by Sue Bojahra]
Rumours are that everything we purchase in BC will cost significantly more once the new HST takes effect. While this may be true in a lot of categories, the statement cannot be applied across the board. If you look into the proposed details more closely, you will find that your family will not have to be stuck at home forever after due to hikes in taxes on events and activities. There’s still going to be life after HST, and lots of things families can do together without breaking the bank.
It’s not all bad news regarding the HST for British Columbians. Active families who spend a lot of time together enjoying nature, the arts, sports, and other pursuits will still have lots of options available without being unduly affected by the Harmonized Sales Tax after July 1st. In fact, many of the programs and services available to families and children are exempt from all or part of the tax.
For starters, gasoline and diesel for motor vehicles, boats and aircraft is exempt from the BC portion of taxes, as are child car seats and booster seats, child-sized clothing and footwear, and diapers. While not directly related to activities, these are important things to consider when setting out on a family excursion.
Many of the activities families participate in on an occasional or regular basis are provided by charities or non-profit groups. These include sporting events, fund raisers, day camps, arts and cultural events, and many more. Most services provided by these groups are exempt from the HST, especially when they are provided to kids under age 14, or to low income or disabled individuals. Music lessons are another category which is exempt from the tax. Things like camps and day care for kids under 14 are exempt except where overnight supervision is involved. Most events which are staffed by volunteers and run by a charity or non-profit fall under the exemption as well. This is great news for both the organization hosting the events and the families who participate in those activities.
In general, the HST is designed to reduce the amount of taxes paid by producers of goods and services, so the cost of production will go down. In theory, this means that the prices we pay for things should be somewhat reduced as well.
“When three Atlantic provinces adopted HST, consumer prices fell, according to a study by University of Toronto professor Michael Smart…When the B.C. HST is implemented, similar price reductions are expected.” (www.gov.bc.ca/hst/benefits_consumers.html)
Sure, some things may ultimately cost us a little more, such as restaurant meals and events and activities which are offered by “for-profit” businesses rather than charities or non-profit groups. Then again, if the above-mentioned theory about lower production costs for business holds true, maybe the price of a restaurant meal (and other things) will come down a bit too. But it doesn’t take a lot of looking to find other things to do for entertainment that are very inexpensive or even free. By combining all these different ways to enjoy family fun, it should all balance out in the long run.
Contributor:
Sue Bojahra
Okanagan4Kids.com Family Directory
(5 votes, average: 4.40 out of 5)
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What the above article fails to mention:
-The pensioners of BC and others on fixed incomes
-Sports shoes Soccer boots with cleats etc. for children are not exempt.
-That the funding that these charities (mentioned above)pay to put on events will and are being seriously impacted simply because they are no longer receiving the funds they used to and small businesses (the largest employers in BC) mine included are already seeing the impact of this tax by way of a reduction of orders, sales and income.
-The transfer of the control of BC taxes to the federal government.
-The loss of that control ultimately means we are at the mercy of the feds whenever they decide to increase the tax.
-The HST does not generate any more income for the government (yet) it merely transfers 1.9 billion dollars from the companies to the backs of the people. “In theory” this saving is supposed to trickle down” to the people. However, in practice and based on history this savings will be passed on to shareholders and to finance new projects and products that are built/produced offshore in China, Haiti, Guatemala, India or whatever third world country has the lowest labour costs this year. This at the expense of Canadian jobs which is where you used to get your income in order to have the privilege of paying TAX.
-The admission by the Ontario premier that household budgets WILL increase because of the HST.
-That the Restaurant and the Tourism industry are already expecting a 1.2 million loss as a result and that there will be many layoffs in those and other industries. In 2003 a US tourist in BC would have received $1.39Cad for his US dollar that means for every $1000 of spending money he received an extra purchasing power of $390 now his dollar is at PAR and everything cost’s more so basically for every dollar in spending money he has now he actually loses money on any transaction he makes.
-The maritime provinces now share one of the largest underground economies in Canada and you would not consider those provinces to be booming by any stretch of the imagination.
-That many companies took advantage of the implementation of the tax to raise their prices on 01 July the cost of the Vancouver Sun newspaper being one example, there are many more examples of this “trickle up” effect.
-That UK have increased their VAT to 20% as we are expected to bailout more banks and multi-national corporations these tax hikes will become the norm an example is the Canwest Global which is under the protection of the court and most likely we will be expected to help bail them out of their self imposed financial mess. http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20100108/bc_canwest_court_100108/20100108/?hub=BritishColumbiaHome
-Canadians are paying around 70% of their income directly or indirectly in taxes in one form or another. Taxes come in many forms and with varied names such as licenses, permits, inflation etc. all of which are taxes.
What then is paying ones “Fair Share”? when you consider a pensioner on fixed income who diligently saved for his/her retirement versus corporations and CEOs that are paying only a fraction of their income in tax, and who transfer assets to offshore trusts.
I could go on but I do not wish to write a book!
NOW is the time for change! Get off your butt BC and take control of your run-away government, don’t leave the job to your children!
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