BC Tax Day

British Columbia celebrated Canada with new taxes, with a jacking up of our carbon tax in addition to levying new provincial sales taxes on previously untaxed goods and services (aka: the HST). Gordon Campbell was given the option by the Prime Minister not to add new PST to the previously exempt, but Gordy declined. Scottish economist Adam Smith once wrote "Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer." So the carpenter can get a 7% rebate on his chainsaw, but he has to charge 7% more to every customer he works for. Any reduction in cost is offset by a reduction in consumption as already over-taxed consumers have less money in their wallets.

I support lowering business taxes, but not at the expense of adding taxes to consumers. Guaranteed that businesses will not be passing on their savings with 100% efficiency to consumers, and do you think all these businesses will be hiring new employees to help them meet reduced demand? It is unlikely to be enough to offset the loss of wealth that the consumer base will experience. When the GST was introduced, they said it would be revenue neutral. It wasn't. It was a cash cow for government, and everything anyone has bought in this country since has cost more because of it.