NEWS RELEASE · 9th March 2010
BC Liberal Government Caucus
NDP leader Carole James's rejection of a report showing the Harmonized Sales Tax will create more than 113,000 jobs over the next 10 years highlights the NDP's incompetence.
"This report by one of Canada's pre-eminent economists clearly shows the benefits that will accrue to British Columbia," says Finance Minister Colin Hansen. "The report by Dr. Jack Mintz illustrates the HST is a game changer and will result in more than $14 billion in new investment, thousands of new jobs across the province and put British Columbia in a stronger economic position than almost any other jurisdiction in Canada.
"The NDP opposed the largest personal income tax reduction in B.C. history, they opposed the reduction of corporate capital taxes, they've opposed the reduction of small business taxes and they opposed the carbon tax - and each time the NDP was wrong and they're wrong this time."
The NDP have offered conflicting versions of its HST position.
* NDP leader Carole James has said the HST won't be replaced.
* NDP finance critic Bruce Ralston has said the HST won't be repealed - "I mean, it's kind of like having your appendix out. Once it's done, it's done."
* NDP energy critic John Horgan has said the tax will be eliminated, "but we have to find revenue to offset that from other taxes."
"The NDP need to stop the irresponsible rhetoric and come up with one position on the HST. The NDP have opposed every economic measure the government has taken and the only economic scheme that Carole James has proposed is reckless spending," says Hansen. "The HST will encourage business investment, will create jobs and will ensure British Columbia comes out of the economic slowdown in a strong position."
According to the report, all industrial sectors in B.C. will benefit from sales tax harmonization and will see their effective tax rate on new investment drop by over a third, while some will see reductions of over 40 per cent. Small businesses will also see substantial benefits with their effective tax rate on new investment declining by almost 60 per cent.
Comment by Samantha on 17th March 2010
I'm just wondering why Adam isn't here pointing out how negative this press release is? How tiring it gets?
Comment by Kim Poirier on 10th March 2010
The PAB lies, everyone knows that. Jack Mintz got almost $1,000 a page to completely reverse his earlier report.
Liberals are getting more desperate
Comment by Karen Dedosenco on 10th March 2010
Corrections aren't needed. A 'retraction' and an apology are usually in order when false reports are printed as truth. But, don't expect anything from these desperate Liberals except more lies and false innuendos.
Here is the link Grant mentioned. Very informative article.
Comments made in G&M:
"According to Forbes.com, Mintz - as Director of Imperial Oil in 2008 - got $69 thousand in fees and $138 thousand in stock awards.
Last year he urged the Alberta gov't to reduce oil royalties.
According to Forbes.com, Mintz - as Director of Brookfield Asset Management in 2008 - got $124 (thousand) in stock awards.
Brookfield owns Western Forest Products which was enabled to sell its tree farm land last year by the BC fiberals.
Brookfield and WFP donated over $100 thousand to the BC Liberals the year before the sale!"
Is Mintz someone we can trust to give us an unbiased opinion?
Comment by BC Mary on 9th March 2010
Seems like this report is explaining things upside down and backwards ...
Jack Mintz has flip flopped on the HST
Comment by Grant Gough on 9th March 2010
Lets get down to the truth, the real truth..Jack Mintz said in 2008 ...About the HST being implemented in Ontario...Jack said that it will cost 38,000 jobs, Jack Mintz also said job losses would continue for 4 years stabilizing in the fifth year of implementation of the HST..
Jack mintz said, after 10 years of HST the impact on jobs would be negligible,he also said that after 10 years of HST wages would be lower,but mainly do to higher cost of consumer goods and services.
Jack Mintz also said in 2008 that the HST would be good for business,but we in BC already know that.
In Jack Mintz`s latest Flip Flop, he has made the claim that there will be $11 billion in new investment in the next 10 years, that is $1.1 billion per year....But...Over the next 10 years there will be $19 billion dollars of consumer spending taken in taxes..($1.9 billion per year)....
Also...Jack Mintz states there will be 113,000 jobs over 10 years,that is 13,000 jobs per year....Wouldn`t we create that many new jobs on population growth alone?
His entire 14 page report is nothing but speculation and "faith based" reporting, the report cost 12,00.00$ ...12 thousand dollars...What kind of detailed study of this magnatude would cost but 12 thousand dollars.
Also...Jack Mintz makes the comparison to Atlantic Canada HST experience...
Well in 1996 in Atlantic Canada the PST there was 12%...The GST was 7%...Combined the tax load was 19%.....But as an enticement to Atlantic Canada public to adopt the HST...They agreed to KNOCK OFF 4 POINTS off the TAX RATE...
So the new combined tax rate in 1996 was 15%(now 13%)....And yes,prices went down 1%...But there was 4 points taken off the tax rate,that means business kept the other 3% of the tax...And also noted in Atlantic Canada that housing prices went up and so did services, overall it was a consumer hit....
But even with that...For Jack Mintz to compare BCs HST to Atlantic Canada`s HST is flawed...We are not getting taxes lowered,weare paying taxes on previous exempted items...
BCers would be thrilled if the BC hst was to bring a new tax rate of 8% total,even 10% total...So for Jack Mintz not to cite the difference in Atlantic Canada and our BC hst is flawed...For that Jack Mintz gets a big fat FFFFF....
All of these facts that I have written can be confirmed....Just Google up "HST shell game continues".......Or google up "The Straight Goods" --Powell river persuader-
There are links on the real story, links to what Jack Mintz said in 2008....Lastly folks, 10 months to wait for a feeble 14 page report from a flip flopper?
The restraurant industry,the tourism industry are calculating 10,000 lost jobs in boths industries...
Also announced today...The Chevron refinery in Burnaby is laying off 250 employees...Shouldn`t they be adding jobs with the HST coming?
Oil n Gas industry, they drill wells,cap them and move on, they won`t be hiring...Teck Comenco made over a billion dollars last year, the HST means nothing to them,a few dribbles...
Forestry relies on World price,not the HST...As does the world price of copper or gold...Believe me, if commodity prices collapse, Teck Comenco won`t mine it,despite the HST....
Last Point, university students pay more to the BC government in tuition then all the corporate tax combined in BC...That is sick...These facts and more can be confirmed at the above sites, I would leave direct links but the comment format states links are not allowed...Gets the "real facts" before you decide.
Thank you very much for the time you took to read this.
Stones from a resident of a glass house
Comment by Helmut Giesbrecht on 9th March 2010
Reading a press release from the Campbell Liberals lecturing any party on economics is a bit much. Folks might should check out the following site on The Tyee:
Also they need to reread the article "In Tight Times Campbell Gov't Chooses to help Big Banks" posted on the Terrace Daily a few days ago.