A timeline of BC Liberal plans to bring back the HST by a new name
After Christy Clark opened the door to a new value added tax this week, the BC Liberals are backtracking, claiming she misspoke and that the BC Liberals are not planning to bring in a VAT.
But a closer look reveals that this was not a one-time mistake. Clark, Mike de Jong, BC Liberal MLAs, and their rich donors have been subtly but deliberately laying the groundwork to bring back a value added tax for years.
Value added taxes shift tax burdens from businesses onto people. By definition, they remove taxes on business inputs and make up for it by broadening the taxes on consumers.
The HST (a value added tax) shifted $2 billion from businesses to people and cost the average family at least $800 more per year. Accounting for inflation, a new value added tax would likely cost the typical family about $1,000 more every year.
Here’s a timeline of the steps the BC Liberals and their rich donors have taken to bring back the HST under a different name:
2009:
- BC Liberals fill out an election survey saying that the HST is “not something that is contemplated in the BC Liberal platform.”
- One month after re-election, Gordon Campbell announces he will impose the HST.
- September: Documents reveal the BC Liberals were examining the HST months before the election.
2010
- The HST comes into effect - shifting $2 billion in taxes from businesses to consumers.
2011
- New BC Liberal Leader Christy Clark urges British Columbians to vote to keep the HST.
- The Smart Tax Alliance - a business lobby group - spends $15 million on campaign to keep the HST.
- British Columbians vote to get rid of the HST.
2012
- Submission from Business Council of BC to Expert Panel on Business Taxation calls for a “made in BC” value-added tax.”
2013
- BC Chamber of Commerce CEO John Winter (now of “Say Anything John”) calls for a new value added tax, saying “maybe we need a made in B.C. solution we can call by another name.”
- Bill Vander Zalm responds to the idea of a new value added tax: “If the government went for it...there would be a revolution. I might be at the head of it.”
2016
- BC Liberals announce a Commission on Tax Competitiveness to review PST and other taxes.
- A submission from the Business Council of BC to the tax review commission pines for the HST and calls for a “‘made-in-BC’ value added tax” noting that “such a tax would be similar to the HST in overall structure and operation.”
- A submission from the BC Chamber of Commerce calls for “the development of a made-in-B.C. Value Added Sales Tax system.”
- Commission on Tax Reform releases final report recommending a “made in BC value-added tax.”
- Business Council of BC welcomes the report: “The Commission’s recommendations relating to PST exemptions and the development of a modern ‘made in BC’ Value Added Tax are very much in line with our own views.”
2017
- January: A group led by John Winter, former head of the BC Chamber of Commerce launches pre-election attack ads against the NDP - pulling out all the stops to get Christy Clark back in.
- April 19: Province columnist Mike Smyth asks Mike de Jong if the government would bring back the HST or rule out a value added tax. De Jong denies he will bring back the HST but deliberately avoids ruling out a value added tax, citing the Commission on Tax Competitiveness: “you've seen the commission on tax competitiveness, you've seen their recommendations and I've said there is merit in exploring some of those ideas.” https://youtu.be/tLxzLNhnDo0?t=18m1s
- April 25: Talking about the HST at an all candidates debate, BC Liberal Candidate Doug Bing says:“I think in the near future it will be revived.”
- April 28: Christy Clark is asked whether she will bring back the HST or another form of value added tax. She says she won’t re-introduce the HST, but makes a point of keeping the door open to a value added tax: “but the thing is though, we do know that the Tax Competitiveness Panel came back with a recommendation for a Value Added Tax…we’ve said we’ll be prepared to talk to the business community and British Columbians about different ways we can reach tax competitiveness.” (video clip)
- April 29: BC Liberals spinners claim Clark misspoke and the BC Liberals are not contemplating a value added tax.
Members of the Business Council of BC (who have led the push for a “made-in-BC VAT,” and on whose submissions the Tax Competitiveness Panel’s findings are largely based), have donated nearly $10 million to the BC Liberals since the HST was rejected by British Columbians.
Here are four key questions Christy Clark needs to answer:
- Will you rule out a value added tax?
- You, your finance minister, your MLAs, and your key political allies like John Winter have all opened the door to a value added tax. How can British Columbians believe that you won’t bring it in?
- How can British Columbians believe you after your party misled British Columbians by imposing the HST right after the 2009 election?
- If you admit that you are considering a complete overhaul of BC’s tax system by introducing a value added tax, why isn’t this “contemplated” in your platform?