A University of Calgary economist has hailed the HST for helping B.C. become more competitive than Alberta.
“The HST may not be popular in B.C., but it has drastically lowered the overall cost of doing business, thereby making B.C. one of the most attractive business environments in Canada,” said Jack Mintz, director of the university’s School of Public Policy.
In a paper published Tuesday, Mintz ranked B.C., Alberta and New Brunswick as the most competitive provincial jurisdictions in Canada.
On the other side of the coin, Quebec, Prince Edward Island, Saskatchewan and Manitoba ranked the least competitive, according to Mintz.
The introduction of the HST in B.C. and Ontario were “milestones” for economic growth, he said, where previous retail sales tax regimes has placed a heavy burden on business intermediate and capital goods.
“Reversing this step, as there is growing pressure in British Columbia to undertake, would be investment killing and would cause considerable harm to the British Columbia economy, including losses in employment and hence an erosion of living standards,” Mintz wrote.
And he had a word of advice for the federal government as well: keep the corporate tax cuts coming.
“We’re just beginning to stake our claim as a country that is good for business,” Mintz said. “To revoke Canada’s planned corporate tax cuts would reverse that trend and cost jobs, business growth and competitiveness.”