Last Thursday BC newspapers carried a large ad supporting implementation of the Harmonized Sales Tax. The advertisement was signed by the “Smart Taxation Alliance” a group of 30 or so employer organizations.
The ad carried the usual dubious arguments that transferring the cost of taxes from corporations to consumers will create vast economic activity. What intrigued me was the line:
The Smart Tax Alliance is a non-partisan alliance of 30 business and industry groups formed to support the job-creating benefits of the HST.
I was curious what they meant by “non-partisan” so I turned first to my trusty Oxford Canadian dictionary which defines partisan as:
An adherent or supporter of a party, person, or cause, esp. a zealous supporter.
Now the ad makes it clear these guys are zealous supporters of the HST so I am pretty sure they are not talking about that.
No, I suspect what the ad is trying to suggest is that the group is “non-partisan” in the political perspective: In BC terms that means the choice between the NDP and the Liberals.
This made me more curious. Fortunately Elections BC has just the tool on their web site to help me with that. They have a search engine that allows you to find out how much people have donated and to whom they have made the donations. The search engine can be found here.
It turns out that about half of the Alliance’s members had made direct contributions to political parties in 2009, the year of the last provincial election. This came to a total of $529,000 to the Liberals, and $23,000 to the NDP. The NDP got slightly less than 5% of the money that went to the Liberals. The New Car Dealers gave $275,000 to the Liberals. They also threw $10,000 the way of the NDP.
Some of the groups that had not made direct contributions to the Liberals in 2009 also had some fairly strong indications of partisanship. The Business Council of BC, for example, spent nearly $100,000 advertising in support of the government in the run up to the 2009 election. The Railway Association of Canada made no donations to the Liberals in 2009 but CN Rail, CP Rail and Southern Rail among them gave $50,000 to the Liberals. Similarly, the Coal Association made no donation but separate coal companies did. Initiative Prince George is a municipally owned economic development body. They didn’t donate any money to political parties in 2009, but they did get $68,000 from the provincial government according to the Public Accounts.
Not surprisingly, six of the organizations involved in the “Smart Tax Alliance” are also involved in the legal action attempting to overturn the results of the Anti-HST petition campaign. The Vancouver Sun reports these six organizations gave $162,000 to the Liberal Party since 2005 and nothing to the NDP.
Many business organizations have good reason to support the HST. It’s natural that they would want to unload taxes they are paying onto consumers. But let’s not kid ourselves. Big business in BC has now become the advertising arm of an increasingly desperate Liberal Party.
Ryan Windsor // Aug 8, 2010 at 3:02 pm
I fascinating and insightful read. I am personally offended by the remark that in BC the perspective involves a choice between the NDP and the Liberals. What a sad reality that this conveys considering a full 10% of British Columbians support neither party. Further to that many would rather support the BC Green Party but are fooled into making a bad choice because of irrational yet convincing statements like this one.
I’m right of centre-I’m Green-I OPPOSE the HST-my second choice in BC is none of the above and the BC Liberals would be a distant third. I have never and will never vote NDP.
Scott Andrews // Aug 9, 2010 at 1:21 pm
Surprise surprise, business stakeholders want to pass taxes to consumers. Very important to bring this to forefront.
For me the gem is that that nifty tool for searching donations to political parties. I now have fodder for my next family reunion ;-p.
Great piece!
Scott
WendiG // Aug 10, 2010 at 9:46 am
Do these corporate types never change their tunes?
All we hear about is that if only taxes to businesses are reduced, the result will be labor peace and prosperity for all..nonsense!
Implementation of the HST suits them to a man..there is nothing about taxes being downloaded onto the increasingly-poor consumer that they don’t like..and where are all these jobs? Aside from part-time in the service sector, traditionally the worst-paid, and shrinking numbers of these attest to the fact that the restaurant business in BC is less healthy, due to the implemementation of this onerous tax.
What’s really pathetic is that the public will accept this financial flagellation without a whimper, come the next election…
The Smart Tax Alliance. Non-Partisan? Really? « RECALL in the FALL // Aug 12, 2010 at 1:09 pm
[...] Read the full article // [...]
kclear // Sep 16, 2010 at 9:36 am
Well I guess that’s fair given that the NDP have all the trade unions – some of them far larger than these business sponsors – funding their advertising campaigns.
JLS // Oct 6, 2010 at 11:15 am
It never fails to shock me when I find out who’s trying to pull the wool over our eyes. Years ago I thought that this level of corruption only existed in third world countries; however when one does research you most certainly can see who they learned it from, we are supposed to be a more educated society, the question really is, are we?
Great research, and a well written exposure of the truth.
HST Smoke and Mirrors | The "JLS" Report // Feb 17, 2011 at 7:25 pm
[...] You might also want to read the following article about these con artists. http://www.policynote.ca/the-smart-tax-alliance-non-partisan-really/ [...]
Danielle // May 19, 2011 at 11:06 pm
If HST is suppose to do what is advertised over the next 10 years, what is going to help the now.
HST introduced July 2010, HST credit on the July 2010 GST tax rebate and nothing the next 3 quarters?
I lived on less then 12,000 dollars in 2010 and became disabled retiredas of Feruary 2011 and live on a combined CPP disability and PWD income of $906.00 a month. I now pay tax to the province on even a simple hamburger for 1.39 at McDonalds now.
And I do not get a credit from the province.
Is that a just government??
Ricardo // May 22, 2011 at 11:46 pm
Smart Tax Alliance? How about Dumb Tax Alliance?
Seems the scare tactics of the STA proponents is the only message being paid for and aired on local TV stations.
The sheople will eat it up.
Thank you for offering a forum where some informed discussion of HST can take place.
The biggest collection of internet articles opposing HST – updated daily. | The "JLS" Report // May 26, 2011 at 9:07 am
[...] The Smart Tax Alliance. Non-Partisan? Really? | CCPA Policy Note (A must read article if you want to know who is fighting the Liberals Pro-HST campaign. [...]
Valerie // May 27, 2011 at 6:52 pm
I understand that the “vote Yes” side (STA) and the “vote No” side (Fight HST) have both applied for $250,000 funding to the Office of the referendum decision maker. If they have received this funding the STA are certainly going full tilt at the advertising plus the Provincial govt are also “spending our money” with there own ads pushing the HST. Does it always have to be this way? Non-partisan my foot!
Ken // Jun 10, 2011 at 9:25 pm
I hardly know where to begin. A revenue neutral tax does not raise 800 million additional dollars.
This amont has come strickly from the populace/taxpayer – you and me. Of course the various companies who have had their tax cut/reduced will support the HST. This tax is hurting and will continue to hurt young families and the lower income groups including seniors.
We are all going to be subject to higher taxes, this we all know or should know. Our medical system wastes an unbelievable amout of money,
without any end to it. I don’t know what to do about it, it does’t matter which political party is in power. They all tax and spend in order to stay in power. Perhaps we need a TAXPAYER revolt to make them see the real world.
Ken
Erin Anne // Jun 13, 2011 at 5:01 pm
I’m confused by this position.
I pay 12% taxes for a back-to-school wardrobe for my 17-year-old son under 5% GST + 7% PST. To make it easy, let’s say that wardrobe cost me $100. That means I pay $12.
Under HST (pre-tax-rate drop to 10%) I still pay 12% for those same clothes. That’s still $12. How is that more?
OK, so now let’s look at it from another angle. I have a small home-based business. Under GST+PST I pay 12% for a bundle of office supplies totalling $100. I get $5 back from GST.
Under HST I still pay $12 taxes for those office supplies, but I get that whole $12 back later on. Once I grasped that, I registered for the HST program right away even though I don’t have to (yet — I keep dreaming and working at it, though!).
Moreover, under PST+GST I have to figure out two different tax reporting systems, and fill out two completely different forms, write two cheques, etc. I think I’ll blow up just going through it all once, never mind twice…
Under HST I do it once, it’s an easier reporting system by far, and, best of all, I pay less because of the subtraction of the taxes on what I paid out for things I needed for the business to begin with.
Furthermore, I (sadly, still) qualify for low income support. The HST system doubled my quarterly supplemental cheque.
Bottom line? I’m way ahead.
Besides all that, I don’t understand anti-business sentiment. Without businesses there are no jobs. A plumber working solo is a business even though he employs himself; a plumber working for a plumbing company is still employed by a business. He’s not going to plumb my plugged bathroom toilet for free.
I keep reading and listening to everything I can on both sides, and I just can’t see the math working out the way the anti-HST people keeping saying it does, especially with the drop to 10%.
I’m in the low-income bracket everyone keeps claiming is hurt by the HST, and I’m simply not experiencing what you all say I should be. It’s not a new/additional tax, except for an uptick of 7% (soon 5%) on some items that weren’t taxed before, which is more than offset by the increased HST rebate cheque and the HST credits I get in my small business.
I’m better off.
Bruce // Jun 20, 2011 at 12:13 pm
Before you registered for the GST/HST, you used to charge me $100 for services you provided. Then you registered to get back your inputs, so I paid $105, and now pay $112, for the same service. As your inputs will in NO WAY cover your payables, you end up remitting the difference to the government. Yet I’m out $12 and received nothing extra in return.
I’m NOT better off.
Connie // Jul 5, 2011 at 2:54 pm
I have never been so chocked!
This tax has done nothing but cost the business where I work. We now charge tax on things that we never did before….sales have dropped over $200,000.00 last year alone! This year is no better.
Then to top if off…the Smart Tax Alliance has the nerve to call the store and give a longwinded speel about how great the tax is for us!!!! Seriously…are you kidding? Now not only the tax has cost my business money but you have taken up valuable time of the employees listening to your garbage!!