HST hoopla unfounded; savings over consumption

Dec 19 2017, 11:52 am

The bickering and complaining by the NDP and their lackey Bill Vander Zalm about the “cruel tax” has me wondering where the harmony has gone. As always, without researching the facts, the NDP has jumped on Gordo’s move for the HST haphazardly, like horny fiends, just as they did with the carbon tax.

BCers, I know we’re not stupid. Let’s look at the facts and do some critical thinking. The permanent increase in the price level is expected to be 0.7% for the consumer, according to TD. And no one can dispute the credibility of TD, arguably coming out of the recession ahead of all banks in the Northern Hemisphere.
Anyways, BC, let’s put that into perspective. Let’s be generous and say one consumes $40,000 in goods and services each year. The HST taxes you an additional $280 for the year. Firstly, if you’re consuming 40 g’s, your income is well above $70k so you can afford to pay the extra price. You can also consume less and save more (as I’ll mention later). This, along with the “widely exaggerated” effect on housing is the hoopla? Also, if you’re expecting to have more money during a recession when governments are going broke you’re a dumbass.
Secondly, this idea of not being able to consume is a dangerous road to hell. Look at the US and their consumption-based economy. They are getting shitkicked right now with consumption lifestyles, putting plasma TVs and Benz’s on credit, barely affording interest payments, paycheque to paycheque. The savings rate in the US is zero! Look at the emerging economies in Asia, India and China, where savings rates are 20-40%. They will move ahead of the US economy in no time.
The US is finally starting to realize this

“…there are now high-level suggestions that the tax system needs to be
changed to encourage savings instead of spending.

“In two generations it seems that we’ve lost the culture and habit of
savings,” says Nancy Register, of the Consumer Federation of America “There’s
so much marketing pressure to spend and buy and have instant gratification. And
if you can’t buy it now, put it on your credit card.”

Last week, Federal Reserve Chairman Alan Greenspan warned that the low
savings rate is impairing the nation’s long-term economic prospects. An improved
savings rate would provide investment money for businesses, which would create
jobs, he said.”

Now where does that leave BC? If you look at the tax structure the Liberals have been working hard to implement, you’ll see a savings strategy is at the core. The carbon tax and HST, tax consumption. These taxes have been offset by income tax cuts. You have more money in your pocket and less incentive to consume, forcing you to save and become more wealthy. It’s simple economics, duh!
Overconsumption is bad for your wallet and the environment. Like the ING Direct guy says, “save your money.”
DH Vancouver StaffDH Vancouver Staff

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