HST by the numbers

In regards to D. Dietz’s letter in the July 27 edition, there is some erroneous data. Let’s begin with the $1,400 assertion. Well first it would be $1,458.33 and second it wouldn’t be that at all. You see math is a subject that few in this town seem to grasp.

In regards to D. Dietz’s letter in the July 27 edition, there is some erroneous data. Let’s begin with the $1,400 assertion. Well first it would be $1,458.33 and second it wouldn’t be that at all. You see math is a subject that few in this town seem to grasp.

The real number is $2,500 now, increasing to $3,500 in 2014. This is the amount using only goods and services that are newly subjected to the PST portion of the HST — seven per cent of $2,500 is $175. By adding the GST to those calculations you are not giving an accurate accounting of true increased costs. The GST is there regardless of the outcome of the referendum.

Here are the real numbers. Say I purchase $10,000 worth of goods and services that are subject to the HST, so an extra $1,200 in tax, $500 goes to the GST regardless of the outcome of the vote so it is a fixed cost that does not change. Let’s look at what does change. Presently $700 goes to the PST portion and in 2014 it drops to $500. The percentage bantered around is that the HST adds seven per cent sales tax to roughly 17 per cent of purchases made by the average British Columbian. So using this, if the HST is scrapped then only $8,300 would be subject to the old PST which is $561. Though this is a savings now, it is not later ($500 in 2014).

I looked at all the new items that are taxed and found that I am not very average. My numbers are closer to 95 per cent the same regardless of the vote. This means that I would pay $665 PST on that $10,000 the old way. So I paid an extra $35 this year as I will in 2012, $70 more. In 2013 it drops to six per cent, which is $600 and now I’m almost even, $5 won’t get me a pint (including tip) at any of my favourite watering holes. After that I’m saving $165 for every $10,000 spent on HST items. It will take the “average” person a lot longer to see any savings from the percentage drop, but the “average” person gets the rebate, which I do not as any of the criteria to be eligible does not apply to my situation.

Don’t you just love math.

M. Morrison





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