http://www.househunting.ca/renovating/story.html?id=54778904-b826-4796-a0f7-842124058e86
Summary:
This article talks about a meeting held in Ottawa regarding the HST and some of its negative impacts. First of all, all participants had agreed that the HST will jack up the cost of new homes. This will cause a discouragement to the economy. The board had also approved B.C. rebate threshold for new homes from $400,000 to $600,000 also a renovation tax rebate for homeowners in an attempt to fuel the economy. The Greater Vancouver Home Builders’ Association has reports by independent housing economists stating the negative impacts of HST and how they should be handled.
Connections:
The connection here is the taxation the government continues to add on. Chapter 3 and 4 talks mainly about taxes and the role of the government in an economy which ties into the government creating this HST. As the Wagner’s law of increasing state activity states, government spending can be expected to grow at a faster rate than the total output of goods and services. This may be the factor because our economy is growing fast. Taxes should be equitable, but the new tax will result in a higher cost for homes. This is not equal to all people because consumers are not making more money.
Reflection:
I find it outrageous that more and more new taxes are being brought out. First, during the Second World War, the Canadian government collected taxes in order to help fund the armies, even after the war the taxes were not lowered or taken out. With the PST already in play, the government decides to put in a GST on July 1, 2000 and now, a decade later, they introduce the new HST. I don’t find it equal to all the house owners and house builders, because home owners will have to pay this tax while the home builders don’t. I would like to see the government try to do something more productive rather than charging more taxes.
