Tax Impact of BC’s HST Debate on Investment and Competitiveness
If voters kill British Columbia’s Harmonized Sales Tax (HST) in a June referendum, the province’s economy will suffer in the long run. A rejection will spur the rebirth of the provincial retail sales tax, leading to steep increases in the marginal effective tax rates on capital and costs and a corr...
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| Format: | Article |
| Language: | English |
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University of Calgary
2011-05-01
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| Series: | The School of Public Policy Publications |
| Online Access: | https://dev.journalhosting.ucalgary.ca/index.php/sppp/article/view/42358 |
| _version_ | 1797754413010386944 |
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| author | Jack M. Mintz |
| author_facet | Jack M. Mintz |
| author_sort | Jack M. Mintz |
| collection | DOAJ |
| description |
If voters kill British Columbia’s Harmonized Sales Tax (HST) in a June referendum, the province’s economy will suffer in the long run. A rejection will spur the rebirth of the provincial retail sales tax, leading to steep increases in the marginal effective tax rates on capital and costs and a corresponding dip in investment and job creation. Should voters decide to keep the HST, BC will reduce the tax by two points over the next three years and raise the corporate income tax rate to bridge the revenue gap. This will also negatively impact corporate competitiveness, but since the government has indicated that the hike will be temporary, retaining the HST is the best option for BC’s economy.
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| first_indexed | 2024-03-12T17:33:09Z |
| format | Article |
| id | doaj.art-f3e700eae9484c67892f446dd323341f |
| institution | Directory Open Access Journal |
| issn | 2560-8312 2560-8320 |
| language | English |
| last_indexed | 2024-03-12T17:33:09Z |
| publishDate | 2011-05-01 |
| publisher | University of Calgary |
| record_format | Article |
| series | The School of Public Policy Publications |
| spelling | doaj.art-f3e700eae9484c67892f446dd323341f2023-08-04T15:53:20ZengUniversity of CalgaryThe School of Public Policy Publications2560-83122560-83202011-05-014Tax Impact of BC’s HST Debate on Investment and CompetitivenessJack M. Mintz0School of Public Policy, University of Calgary If voters kill British Columbia’s Harmonized Sales Tax (HST) in a June referendum, the province’s economy will suffer in the long run. A rejection will spur the rebirth of the provincial retail sales tax, leading to steep increases in the marginal effective tax rates on capital and costs and a corresponding dip in investment and job creation. Should voters decide to keep the HST, BC will reduce the tax by two points over the next three years and raise the corporate income tax rate to bridge the revenue gap. This will also negatively impact corporate competitiveness, but since the government has indicated that the hike will be temporary, retaining the HST is the best option for BC’s economy. https://dev.journalhosting.ucalgary.ca/index.php/sppp/article/view/42358 |
| spellingShingle | Jack M. Mintz Tax Impact of BC’s HST Debate on Investment and Competitiveness The School of Public Policy Publications |
| title | Tax Impact of BC’s HST Debate on Investment and Competitiveness |
| title_full | Tax Impact of BC’s HST Debate on Investment and Competitiveness |
| title_fullStr | Tax Impact of BC’s HST Debate on Investment and Competitiveness |
| title_full_unstemmed | Tax Impact of BC’s HST Debate on Investment and Competitiveness |
| title_short | Tax Impact of BC’s HST Debate on Investment and Competitiveness |
| title_sort | tax impact of bc s hst debate on investment and competitiveness |
| url | https://dev.journalhosting.ucalgary.ca/index.php/sppp/article/view/42358 |
| work_keys_str_mv | AT jackmmintz taximpactofbcshstdebateoninvestmentandcompetitiveness |