Most low and middle-income families in B.C. will see their total tax bill decline under the harmonized sales tax, which takes effect July 1, according to a study by Vancouver’s Fraser Institute.
A slight rise in other people’s tax burden means that the institute’s so-called Tax Freedom Day will remain June 8 next year, according to Niels Veldhuis, the free enterprise think tank’s senior economist and co-author of the report, The Impact of the HST on British Columbian Families.
Tax Freedom Day is the time of the year when, until that day, all money earned by Canadian taxpayers has gone to pay off the various taxes levied on them by governments.
Veldhuis said: “The leaders of the campaign to halt the HST are distorting and exaggerating the impact of the HST. The truth is, low income families will be better off under the HST.”
He attributes income tax reductions and the HST credit as being responsible for an improved tax situation facing poorer families after July 1.
B.C. Finance Minister Colin Hansen similarly told Business in Vancouver last week that he is frustrated at misinformation that anti-HST forces are spreading.
He mentioned recently hearing a radio advertisement to buy real estate now and avoid the HST.
“That’s only relevant for a new home valued at over $525,000,” Hansen said. “I heard one radio advertisement in Victoria where they were talking about this new project with units ranging between $370,000 and $490,000. The closing line on the ad was ‘Buy now and save the HST.’ Well, it actually won’t make any difference ‘[because of rebates]. It’s certainly misleading advertising.”