Study
| EST. READ TIME 2 MIN.The Impact of the HST on British Columbian Families
This Alert provides an empirical measurement of the impact of the HST on the average British Columbian family. The Fraser Institute is well suited to provide such an analysis; it has a long history of measuring how much tax, in all forms, British Columbians pay. For example, the Fraser Institute annually calculates and publishes the most popular and easily accessible measure of the total taxes Canadians pay: Tax Freedom Day.
On July 1st, 2010, British Columbia?s provincial sales tax (PST) will be integrated with the federal Goods and Services Tax (GST) creating a single harmonized sales tax (HST) of 12 percent?a 7% provincial portion and 5% federal.
Many British Columbians have been led to believe that harmonizing the PST with the GST will significantly increase the total taxes they pay. It is hard to blame them for holding this view. After all, the words ?tax increase? and ?HST? have appeared together in over 177 articles in BC newspapers over the past year.
This Alert provides an empirical measurement of the impact of the HST on the average British Columbian family. The Fraser Institute is well suited to provide such an analysis; it has a long history of measuring how much tax, in all forms, British Columbians pay. For example, the Fraser Institute annually calculates and publishes the most popular and easily accessible measure of the total taxes Canadians pay: Tax Freedom Day.
Using the Fraser Institute?s Canadian Tax Simulator, which is based on Statistic Canada?s Social Policy Simulation Data base and Model (SPSD/M), this Alert measures the total amount of tax the average British Columbian family will pay under the HST versus the status quo PST. It also examines how the implementation of the HST will affect Tax Freedom Day in British Columbia. The Alert concludes by examining the impact of the HST on BC families at different income levels.
-
Niels Veldhuis
President, Fraser Institute
Niels Veldhuis serves as President of the Fraser Institute, Canada’s most influential think tank.In his over 20-plus-year career in publicpolicy, Niels has authored six books and more than 50 peer-reviewed studies on a wide range of economic topics. In 2011, he was awarded (along with his co-authors) the prestigious Sir Antony Fisher International Memorial Award for the best-selling book, The Canadian Century.Highly regarded for his opinions and perspectives on major economic and social issues, Niels appears regularly in the media across Canada and the United States. He has written hundreds of commentaries that have appeared in over 50 newspapers, including the Globe and Mail, Wall Street Journal, National Post, and The Economist.Known for his ability to explain matters of economics and government policy in a down-to-earth and easily understood manner, Niels travels widely across North America. His speaking engagements extend to diverse audiences, including business groups, corporate gatherings, community organizations, and students.Niels has had the privilege of sharing the stage and moderating discussions with prominent business and political leaders from around the world. Notable individuals include Prime Minister Stephen Harper, Prime Minister Brian Mulroney, and BC Premier Gordon Campbell. He has also moderated discussions with distinguished Canadian journalists such as Chantal Herbert, Andrew Coyne, and Rex Murphy, as well as diplomats such as Canada’s Ambassador to China and Israel’s Ambassador to Canada. Niels moderated a discussion between United States Presidents Bill Clinton and George W. Bush in 2011 and has facilitated conversations with impactful authors like Mosab Hassan Yousef (author of "Son of Hamas") and Lord Conrad Black.Niels Veldhuis is an alumnus of Simon Fraser University, was one of Vancouver’s Top 40 under 40 by Business in Vancouver in 2010, and is a member of the Young Presidents’ Organization (YPO).… Read more -
Milagros Palacios
Director, Addington Centre for Measurement, Fraser InstituteMilagros Palacios is the Director for the Addington Centre for Measurement at the Fraser Institute. She holds a B.S. in IndustrialEngineering from the Pontifical Catholic University of Peru and a M.Sc. in Economics from the University of Concepcion, Chile. Ms. Palacios has studied public policy involving taxation, government finances, investment, productivity, labour markets, and charitable giving, for nearly 10 years. Since joining the Institute, Ms. Palacios has authored or coauthored over 70 comprehensive research studies, 70 commentaries and four books. Her recent commentaries have appeared in major Canadian newspapers such as the National Post, Toronto Sun, Windsor Star, and Vancouver Sun.… Read more -
Charles Lammam