People can complain all they like about the harmonized sales tax but it’s not going to make a difference.

The provincial government is committed to combining its provincial sales tax with the federal goods and services tax on July 1, 2010 and one big reason is that it’s getting $1.6 billion from Ottawa at a time when government coffers are running dry.

Delaying a decision until a later date would provide no political benefit. In fact, it could jeopardize a fourth term in office if it were implemented close to an election, and we may be forced into a position where we have to implement harmonization without the benefit of a federal transition grant.

It’s clear the province has some catching up to do when it comes to promoting the benefits of the HST. The surprise mid-summer announcement provided the government with little time to prepare its case, but business leaders are now standing behind the harmonized tax.

Still, this bunch of heavy-hitters should prove to be no match for the anti-HST coalition, which includes former B.C. premier Bill Vander Zalm.

Looking long term, the BC Liberal government believes the province has more to gain by shifting the tax burden from businesses to consumers and this is part of a broader term strategy to reduce corporate taxes to boost investment in B.C.

It’s an unpleasant reality, but to stay competitive the province had no choice but to adopt the HST.

But perhaps there is some room to move.

By switching from outright opposition to harm-reduction, HST opponents may get more traction. The low-income threshold before the HST tax credit kicks in could be raised and more exemptions could be sought.

— Tri-City News

(Black Press)