The harmonized sales tax (HST) plus federal and provincial corporate tax cuts will result in 144,000 more jobs plus $14.4 billion in capital investment in the province by decade end, according to a government-commissioned report by economist Jack Mintz.
The provincial government commissioned the report in order to provide "an expert, independent analysis of the economic impact of the implementation of HST and related tax measures in B.C.," according to a Ministry of Finance spokesperson.
The report calls tax harmonization a "game changer" for the province, predicts that the HST alone will create 113,000 jobs and cause a $11.5-billion investment in capital investment by decade's end and concludes, "In summary, the tax reforms about to be implemented in British Columbia will have a profound effect on capital investment, jobs and incomes in the province, representing a giant leap toward its becoming one of the most competitive economies in the world."
In a statement, Finance Minister Colin Hansen said, "The Mintz report confirms that the HST, along with federal and provincial corporate tax rate reductions, will dramatically improve the competitiveness of B.C. businesses, both here at home and abroad."
The B.C. Chamber of Commerce has reacted positively to the report.
"The report is further evidence that the HST is essential for creating jobs and attracting new investment in British Columbia," said Chamber president and CEO John Winter. "Making businesses more competitive and eliminating the layers of imbedded PST on consumer products will mean lower prices on a wide range of goods."
But locally, the HST continues to face some vocal opposition.
"We know for sure that this HST is going to influence and affect middle and especially low-income people very extremely, just because of the simple fact that a lot of things that didn't used to be blanket-taxed will now be blanket-taxed - just look at restaurant use," said Steve Knauff, chair of the Sunshine Coast Labour Council.
He said the council will shortly be involved in an anti-HST campaign. "HST is going to put a lot of tax burden on middle and low-income people and not so much high-income people or corporations, which truly is where we should be trying to increase our tax base."
