James calls to scrap harmonized sales tax
New Democratic Party leader Carole James, left, discusses the impact of the new harmonized sales tax with Tammy Lee, owner of Cutting Edge Hair Design in Summerland. James was in Summerland on Friday as part of an Okanagan tour to raise awareness of the impact of the new tax.
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Updated: September 02, 2009 4:44 PM
In an effort to raise public opposition to the new harmonized sales tax, New Democratic Party leader Carole James came through the Okanagan on Friday with petitions in hand.
James stopped in Summerland in the afternoon to discuss what she believes will happen if the tax is put in place.
The new harmonized tax, at 12 per cent would combine the provincial sales tax of seven per cent with the federal Goods and Services Tax of five per cent.
“It doesn’t actually bring new revenues to the province,” she said.
Instead, she said it would bring about a larger provincial deficit in the short term, followed by a show recovery.
Some items and services which are now subject to just one tax would be charged the full 12 per cent.
The tax would also have a detrimental impact on tourism, she said.
But her more serious concern is about the way in which the tax was introduced.
James believes it should have been mentioned before the provincial election in spring.
“This isn’t just about a tax,” she said. “It’s about a government that didn’t tell the truth. This is a government that betrayed the confidence of the public.”
At present, she has collected around 50,000 signatures on a petition.
The signatures alone are not enough for James to defeat the new tax.
Instead, she said, she would need the support of a number of Liberal politicians.
“It will take eight Liberal MLAs to vote against the Harmonized Sales Tax,” she said.
She added that it will be difficult but not impossible to bring Liberal politicians on side in opposition to the tax.
This could happen if the politicians feel enough pressure from their constituents, she said.
“This is about doing what’s right for the people of British Columbia.”
Tammy Lee, owner of Cutting Edge Hair Design in Summerland, said the tax will have an effect of her business.
The price of a senior’s hair cut will increase by $1.20 to $1.50 because of the tax, she said.
While this amount seems small, she said the cumulative impact of numerous small price increases will be significant.
“It’s hurting them and it’s hurting us,” she said.
“Seniors and low income people are going to be affected.”
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