The Deceit of the HST

I know I’m a little late with this, but I thought since Shane presented some justifiable outrage over British Columbia’s HST, I should present some outrage over Ontario’s HST.  Despite my defense of one aspect of the HST in the comment’s of Shane’s post – and despite my inclination towards replacing income-based taxation with consumption-based taxation – I am fully against the initiative.  I’m sure all my old Econ profs are horrified (sorry, Prof. Hay), but despite all benefits of a unified consumption tax, the HST is incredibly deceitful.

We already knew that the HST would lessen responsibility for politicians.  It’s a nebulous tax that belongs to no one in particular.  Thus, increases won’t be easily attributable to anyone one government or party.  The GST – as hated as it was when it was enacted – had one fabulous feature; you could always see how much it was.  The GST was born in 1991.  For 19 years, it was never increased.  Anyone see that streak continuing with the HST?

Now, we have another reason to hate this atrocious taxation policy.  The McGuinty government has decided to enact it before it has even become law:

In a move that will surprise many, Ontario consumers will get a taste of the province’s dreaded new harmonized sales tax (HST) beginning Saturday [May 1 - I said I was a little late with this], two full months before it is fully implemented.The early start applies to all products and services to be consumed after the 13 per cent tax’s official start on July 1. Airline tickets for fall travel, for example, will be subject to the new blended HST, as will gym memberships, theatre tickets and a range of other goods and services.

But of course, this couldn’t possibly be the government’s fault:

Provincial revenue minister John Wilkinson on Thursday defended his decision not to publicize the early transitional start. He said the rules have been posted on a government website since October. He blamed businesses for failing to inform the public about the changes.

“The decision of businesses as to whether or not they marketed that is up to them,” he told reporters. “But this information has been available broadly to the public since (October).”

Wow, now that’s chutzpah.  Beyond the fact that it’s not the job of private citizens to inform us of changes in tax policy, this just doesn’t pass the smell test.  Businesses have an incentive to get people to buy as far in advance as possible (they’d rather have your cash now than later), surely if they could have boosted their sales in April by highlighting the upcoming dishonest actions of the government they would have.