A Note Of Caution on the HST Fight
The NDP opposition is doing the right thing in taking on the Campbell government on the HST. It is the job of the official opposition to oppose government initiatives and to give voice to aggrieved citizens. This initiative is especially odious because Campbell mentioned not a word about it in the election now only three months in the past.
The NDP is thus right to lead the charge. But some caution is advisable. For those who believe this will be Campbell’s undoing the way the GST was Mulroney’s, they should remember that the GST added a tax to the vast majority of items that people buy. One could not go shopping without being reminded of the tax.
In the case of the HST, when the tax comes into affect next July only a small number of consumer items will be taxed extra. The vast majority of purchases will have the same tax as before. Consequently, it will not be nearly as easy to keep the anger alive as was the case with the GST.
Some caution is also in order about the NDP’s apparent allies in the business community, particularly in the restaurant, tourism, and home building sectors. I have before noted that the most important reason the government did this was to provide tax relief to business, in the amount of $2 billion per year and growing. I am sure it never anticipated the intensity of opposition from those who will have to collect the HST on services previously PST exempt. This has badly compromised the ability of the government to sell the tax. But this is coming from a small part of the overall business community. No stone will be left unturned to remind them that they are also getting a tax break and to find ways to provide them with other forms of relief. It is very likely that as a consequence most will leave this fight behind before long.
After that it will be the NDP alone carrying the fight. In the heat of the battle, some suggest using the HST to organize recall and other intiatives to make the government pay for its sins. Maybe. But there will be even bigger and more sustainable issues coming, especially when the new budget comes down. In mapping out next steps, the Opposition might wisely let cooler heads prevail for now rather than rushing into things like recall prematurely.
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