The HST was shot down today by British Columbians as the Referendum result rolled in. Vander Zalm and his cronies are rejoicing while businesses are shaking their heads. It will be interesting to see what service cuts and increases in taxes are made to cover the estimated $3 billion shortfall by this result.
The tax was defeated as 55% opted to scap it to 45% in favour of keeping it. This will spell doom for certain industries, see Hollywood North as many movie productions will either locate to Ontario or simply stay in California but hey why should that matter to the average bus driver working in a union. It’s not like his job is on the line.
The new PST will be enacted in March 2013 so if you want to really save money I suggest you don’t get a haircut and pay that extra $5 on your grocery bill until then. The new BC PST will NOT apply to restaurants, haircuts, bikes or gym memberships.
Prediction: The same people that voted the HST out will be the ones complain when other taxes go up. You can forget further tax cuts in income taxes, in fact to pay for rising costs I think they just might go up.
Seven out of 11 Vancouver ridings voted to get rid of the HST: Fraserview, Hastings, Kensington, Kingsway, Langara, Mt. Pleasant, West End. If you look at them they are primarily lower income neighbourhoods.