Western University EconomicsWestern Social Science

BC's HST Revolt

SEPT 2, 2011

Economists generally praise taxes like the GST for a lot of reasons, many of them highlighted in a post-revolt article by Jack Mintz. BC voters were apparently unimpressed with these arguments, and voted to rescind the provincial government's earlier adoption of the Harmonized Sales Tax. This raises a lot of questions about the politics of tax reform, some of which are developed in the articles by Lorne Gunter, and Frances Woolley. This correspondent is lead to ask other questions, like - Are people likely to say NO to any proposed tax, given the chance? This is one conclusion to be drawn from recent California history, as well as the experience of those local jurisdictions in which taxes for schools must be voter-approved. If Ontario had a referendum law (it doesn't) would it also be HST-free by now?