tag:blogger.com,1999:blog-6897479481146623890.post752141931378995002..comments2023-12-27T09:39:29.958-07:00Comments on Brian Dell: update to last blogpostBrian Dellhttp://www.blogger.com/profile/15277892651810185583noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6897479481146623890.post-36923503718372084202010-09-01T23:36:20.035-06:002010-09-01T23:36:20.035-06:00In line with the first comment, I note the followi...In line with the first comment, I note the following exchange between BC finance minister, Colin Hansen (Liberal), and his opposition counterpart, Bruce Ralston (NDP) on Nov 23, 2009:<br /><br /><i>Hon. C. Hansen</i>: ...to actually activate the harmonized sales tax in British Columbia and Ontario, that would require federal legislation. The legislation that would be brought into the provincial Legislature is the legislation that would be required to repeal the existing provincial sales tax.<br />....<br /><i>B. Ralston</i>: ...Is the minister saying that the federal government, pursuant to its powers under the Excise Act, has authority to transfer $1.6 billion to the province in the absence of specific legislation? Or is he saying that at the federal level, legislation [i.e. a money bill passed by Parliament] is required to make that transfer...<br /><i>Hon. C. Hansen</i>: It's the former. Under the Excise Act, there is the authority that the federal government would require to transfer the $1.6 billion...Brian Dellhttps://www.blogger.com/profile/01987594019787137564noreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-91895281290818830872010-08-31T08:17:26.983-06:002010-08-31T08:17:26.983-06:00Well Brian, I think sales taxes at least in the Al...Well Brian, I think sales taxes at least in the Alberta context are an example of perhaps good policy but bad politics. A tax shift from taxes on income to consumption is certainly something alot of economists support. But you should note that you are recommending adopting a policy position that 60-70 percent of people including most conservatives are against. The thing about taxes is that "temporary taxes" never are. The income tax was initially introduced as a temporary measure although it didn't work out that way. And offsetting taxes usually wind up becoming "higher taxes" as governments always seem to find more ways to spend our money and run out of their existing revenue. <br /><br />On the other hand Milton Friedman did rather famously say "I'm in favour of cutting taxes under any circumstances, for any excuse, for any reason whenever its possible." So its perfectly legitimate to argue that a discussion of introducing new taxes is not an area where we want to go to. At the moment Alberta spends more per capita than any other province. If there isn't some fat to cut when you're spending more than the socialists in Quebec, give me a red pen, a copy of the budget and an afternoon and I'll happily demonstrate otherwise.Chrishttps://www.blogger.com/profile/08628728347599057479noreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-7336634152224850542010-08-30T22:42:54.239-06:002010-08-30T22:42:54.239-06:00Thanks for the informed comment. I don't thin...Thanks for the informed comment. I don't think an "old style PST" would, in fact, be implemented in this day and age. It would inevitably be harmonized. "PST" or "sales tax" is just a way for the media to get a handle on it. Unfortunately the terminology is indeed misleading. It also shouldn't be seen as a provincial imitative but as a federal one that the province is responding to.Brian Dellhttps://www.blogger.com/profile/01987594019787137564noreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-71300326549228695202010-08-29T00:09:02.253-06:002010-08-29T00:09:02.253-06:00Brian,
What I don't get is why is everyone tal...Brian,<br />What I don't get is why is everyone talking about an instituting old style PST. Wouldn't the most logical thing in the future would be get the Federal govt to add in the additional "HST" points Ontario and BC get to the GST that is already being collected. By discussing irrelevant old style PST's all the parties are doing is obsfurscating the real option on the table. If you look at how BC somewhat controversily did this you wouldn't even need a vote in the legislature or a referendum all you have to do is call Ottawa and tell the to add the points. (BC only voted to repeal the old PST). If Manitoba and Saskatchewan went along with harmonization(I consider the non denial denial's to be pretty weak) you would be on the verge of having a coast to coast national integrated sales tax system which both major federal parties(The conservatives in both their progressive and reform/alliance iterations) have supported strongly and enthusiastically for over 25 years. Alberta could probably with a national single rate get tax included pricing(there are already dormant provision in the Federal Excise Tax Act that allow the Minister of Finance to this by order in council if enough provinces agree) which would take out a lot of the sting of HST/GST.<br />I would sure love to see the look on Bill Vander Zalm's face if a national integrated HST/GST was announced. Both federal parties would also have to admit in BC that harmonization is a long standing policy of both and not something dreamed up by Gordon Campbell. I also think it is in the interest of Alberta not to have an NDP government in BC and supporting a national "manditory" HST would take a lot of pressure off of Campbell. Supposedly when this was last discussed in the mid 1990s Ralph Klein and Jim Dinning were not as opposed as one might have thought though wanted the federal govt to give them substantial income tax points in return for supporting a manditory HST. It was actually Ernie Eves and Mike Harris in Ontario along with some of the NDP govts in SK and BC which deeped sixed the idea and forced Paul Martin to do the existing HST a la carte with Atlantic provinces and now ON and BC.Anonymousnoreply@blogger.com