Obituary: Harmonized Sales Tax of British Columbia

HARMONIZED SALES TAX OF BRITISH COLUMBIA (born: July 1, 2010-died: March 31, 2013): The Harmonized Sales Tax died peacefully across the Province of British Columbia at the end of March 31, 2013.

HST, as it was better known, was a long-term resident of a public policy hospice since the loss of a province-wide, mail-in referendum on Aug. 26, 2011 left it immobilized. The events of Aug. 26, 2011 also bruised the collective ego of the ruling B.C. Liberal Party, which will be long remembered for helping prolong HST's life to the detriment of its popularity.  

The victim of death-by-democracy was originally announced July 23, 2009 by Premier Gordon Campbell and Finance Minister Colin Hansen, who jointly claimed the tax reform measure would boost investment and job creation. It would be the “single-biggest” thing to improve B.C.’s economy, they said -- but they said it just 10 weeks after winning a provincial election in which their campaign pledged not to harmonize.

The HST Stickman, in happier days.

The value-added tax was a multi-stage merger of the 1948-established, 7% Provincial Sales Tax (also known as the social services tax) and 5% federal Goods and Services Tax. 
Born July 1, 2010, HST was never widely welcomed nor respected by the majority of citizens. 

HST increased the prices of airline tickets within Canada, funeral services, real estate fees, health club memberships, dry cleaning, haircuts, tickets for movies, concerts and sporting events, plumbing repairs, and professional services. 

Besides the 2010 Winter Olympics, the revenue HST brought in helped pay for the $514 million renovation of B.C. Place Stadium, the $17 million B.C. Jobs Plan advertising campaign, the $11 million-plus Times of India Film Awards, the Premier's Office's $475,000 credit card bill, her $201,000-plus charter flights to news conferences and programs such as the B.C. Liberals' Multicultural Outreach Strategy and the Pacific Carbon Trust's purchase of carbon offsets -- which the Auditor General called a waste of taxpayers' money. 

The film industry and manufacturers loved it, because they said it simplified paperwork and reduced the cost of doing business. The Liberal-allied Smart Tax Alliance was its biggest booster. But real estate agents, restaurateurs and publicans (among many) hated it. The HST (coupled with a more powerful Canadian dollar) stimulated a newfound passion for cross-border shopping. It plunged Gordon Campbell’s approval rating fell to 9% and he resigned Nov. 3, 2010. 

HST was the product of the stubborn realization by Campbell that British Columbia’s deficit was understated during the 2009 provincial election and the financial risks of hosting the 2010 Winter Olympics were far greater than anticipated. While insisting the idea was hatched after the election, documents released via Freedom of Information proved B.C. officials were talking with federal counterparts early in 2009. Hansen was even briefed about the HST in March 2009.

The Fight HST campaign led by ex-Social Credit Premier Bill Vander Zalm and organized by NDP strategist Bill Tieleman successfully pointed out that the HST was a shift of the tax burden from business to individuals. Their pivotal Sept. 19, 2009 rally on the site of the future Olympic cauldron at Jack Poole Plaza led to a petition that met the threshold of 10% of registered voters across the province. The 700,000-plus signature petition was delivered to Elections B.C. in June 2010 and it withstood an August 2010 B.C. Supreme Court legal challenge in  brought by six Liberal-allied business groups. 

After Christy Clark won the B.C. Liberal leadership in February 2011 and came to power as Campbell’s successor, she dangled a carrot at voters, hoping they'd agree to vote to keep the HST in exchange for her pledge to cut the tax by 2% in 2014. The province’s $5 million stickman ad campaign that was supposed to be informative, not persuasive. Advertising, by its very nature, is persuasive. For the HST, however, not enough people were persuaded to support the HST. 

The referendum received 1,610,125 votes, of which 881,198 (54.73%) were against the HST. It was hailed as a triumph for democracy by the Canadian Taxpayers' Federation, despite the confusing wording of the referendum question (yes meant no). The result forced Clark to cancel her planned early election call for fall 2011. At the time, Clark was more popular than her party and could have won an election. Now, polls say 62% of British Columbians want a new government.

On April 1, 2013, the HST was finally replaced by the resurrected PST -- which had been called “better-stupid” by ex-Finance Minister Kevin Falcon -- and the returned GST.

The HST is survived by Gordon Campbell, Colin Hansen, Christy Clark, Kevin Falcon and his successor Mike de Jong, along with Prime Minister Stephen Harper. Harper played a special role, by enticing B.C. to sign up for the HST with a $1.6 billion lump sum transition payment to help pay the cost of the Olympics. 

Campbell won three terms as B.C. Premier, but failed to finish his last one. He is now Canada’s High Commissioner to the United Kingdom and Northern Ireland, thanks to an appointment from Harper. Hansen is a retiring Vancouver-Quilchena MLA who remains on Treasury Board and the Planning and Priorities Committee. 

No memorial service will be held, but the HST will no doubt be remembered when British Columbians vote in the May 14 provincial election. 

Donations and sympathy cards, in lieu of flowers, can be sent to the Christy Clark fund, ℅ Today's B.C. Liberals. 

HST referendum irregularities?

If the B.C. Liberal-allied Harmonized Sales Tax fan club, otherwise known as the Smart Tax Alliance, celebrates a victory for the "No" side when all the HST referendum ballots are counted, you can bet your dime and two pennies (or three nickels) that the Fight HST "Yes" camp will contest the result over irregularities. Especially if it's a close call.

Maybe the pro-business lobby that trumpets the economic advantages of a single value-added tax (instead of two) will win fair and square?

But it could just end up being a victory for democracy, with a decisive "Yes" vote to tell the government that any major taxation changes should be mentioned to voters before or during an election, not imposed upon them afterward. Such is the reason why Gordon Campbell was forced to retire from the Premiership and British Columbians have been subject to the divisive pre- and post-Olympic value-added tax debate.



I experienced one of those irregularities when I went to the Elections BC temporary storefront at Capilano Mall on B.C. Day. The mall was open Aug. 1 and the Elections BC location was supposed to be. I arrived five minutes before the advertised 6 p.m. closing time to find the sliding door closed and lights off.

Strange. Elections BC is the same independent agency that so professionally conducts provincial elections. If a polling place closed five minutes before (or five minutes after) the advertised time on election day, there would be accusations of irregularities from all parties.

I asked deputy chief Elections BC officer Anton Boegman what happened. He replied on Aug. 2:

"The location was open on B.C. Day but the referendum official did close 5 minutes early that day because of a personal issue."

On Aug. 5, I returned to the same location and mentioned to the solo clerk that I had been there before 6 p.m. on B.C. Day and was wondering about the early closure. He admitted that he closed five minutes early because mall traffic was low and that he wanted to buy some groceries. He said I could have thrown my ballot envelope under the crack in the door, but I told him that was not satisfactory.

I questioned Boegman about whether this reason constituted a "personal issue" and why only one person normally staffed these storefront ballot collection centres.

"You are correct, collection centres should remain open for the hours that have been posted. Indeed all officials staffing these offices had been instructed to do so.
 
"Numbers of staff are determined based on the work requirements. During shift change-over times there are often two staff members present, as well as at other times when necessary. It was not considered a security risk to have solo staff.
 
"Please remember, these are not polling stations where voters go to receive and cast their ballot.  The collection centres are locations that provide another option for voters to return their mail-in ballot package to Elections BC."

Of course, we may never truly learn why Premier Christy Clark and cabinet opted for the mail-in referendum over the election-style system. They are keeping secret whatever report that justified the mail-in referendum. If it really is saving $18 million, show us the report!

Tell me about your experience with Elections BC, ServiceBC or Canada Post. Were you able to get an HST referendum ballot (if you didn't automatically receive one)? What was your in-person ballot delivery experience like?


 

Christy Clark's "open" government? Don't believe the hype

On March 25, 2011, Attorney General Barry Penner announced British Columbians would vote on whether to keep the Harmonized Sales Tax before the planned Sept. 24, 2011 single-day, election-style poll. This referendum would be done by mail. He said it would save taxpayers $18 million and reduce voter fatigue.

Great. I wanted to see the reports that would justify that decision. So I filed a Freedom of Information request. (It's free and you can do it, too: just click here to start the process.)

Just three days letter, on March 28, 2011, I was sent a letter of acknowledgement with a deadline for response of May 10, 2011.

Intake 032811

The Premier's Office had no records, but Penner's ministry did. It sought a unilateral delay in this May 3, 2011 letter. I was supposed to receive a response no later than June 22, 2011.

AGT-2011-00073 extension 050311

June 22, 2011 came and went. Then came this June 28, 2011 letter, which said I would get a response no later than July 13, 2011 because someone at the Office of the Information and Privacy Commissioner allegedly granted the government two weeks to consult an unidentified public body and/or third-party.

AGT-2011-00073 extension 062811

Lo and behold, July 13, 2011 came and went. On July 22 -- at 19 minutes after 9 a.m., precisely -- I received a letter dated July 21 that included heavily censored documents.

July 22 was also the last day for British Columbians to request an HST referendum ballot. A coincidence? I think not.

Exclusive: Campbell crony helped craft HST referendum

Why so much secrecy around the Harmonized Sales Tax? If HST is such a smart tax for B.C. and the mail-in referendum such an efficient method of democracy, why not show us the report?

Or is the government embarrassed that Tom Syer, a key aide to ex-Premier Gordon Campbell (who co-fathered the HST with ex-Finance Minister Colin Hansen) has had a direct hand in the HST referendum? (Read that story here).

Earlier in the same week -- on July 19 -- Premier Christy Clark announced a new "open government" policy. Based on what was supplied and how it was supplied to me on July 22, 2011, one four-letter word comes to mind to describe Clark and co.

Sham.

Exclusive: Campbell crony helped craft vote-by-snail mail concept

What is the real reason that the British Columbia Liberal government scrapped the planned Sept. 24, 2011 election-style referendum on the Harmonized Sales Tax and employ a mail-in ballot system?

Attorney General Barry Penner said on March 25, 2011 that moving the referendum ahead and employing a mail-in ballot "was expected to" save taxpayers $18 million and reduce voter fatigue.

Who could argue with saving taxpayers money or making democracy swift and fair?

My curiosity was piqued. I wanted to see proof. I wanted answers.

What was the methodology for the alleged $18 million savings? What proof was there that voter fatigue would hinder citizen participation in the HST referendum? Did politicians and staff do their homework and know about the potential impact of a Canada Post strike or lockout on a mail-in ballot?

The same day it was announced, I filed a Freedom of Information request with the Office of the Premier, Ministry of Attorney General and Public Affairs Bureau for the communications plan announcement of the HST referendum process, including the briefing notes for Attorney General Barry Penner and Premier Christy Clark; cost-benefit analysis or business case for a mail-in ballot vs. general election-style balloting.

After several delays by the government, I finally received the documents on July 22, 2011 -- which just so happens to be the last day for citizens to request a ballot to either vote yes to extinguish the HST or no to keep it. A coincidence? I think not.

See the documents below.

Whatever Deputy Attorney General David Loukidelis recommended was censored.

However, the documents do show that a key aide to the father of the HST, Gordon Campbell, had a hand in crafting the mail-in referendum. This suggests that the government is engineering the process to reach the outcome it wants: to keep the HST.

An email sent March 9, 2011 by Loukidelis to Penner said the report to the March 16, 2011 cabinet meeting "has been developed with commentary from Tom Syer along the way."

Who is Tom Syer and who did Syer call sire?

Syer was Campbell's Deputy Chief of Staff who, after a stint as a lobbyist, returned to government to head the HST Information Office that was announced October 25, 2010 -- two days before Campbell spent $240,000 of taxpayers funds to buy TV airtime on October 27, 2010 for a televised speech intended to boost the HST.

The HST Information Office was supposed to inform, not persuade. Its website includes news releases with headlines such as: "Harmonized Sales Tax To Boost Investment, Job Creation," "HST, The Right Move at the Right Time," and "Look Who's Backing the HST." It's spending $5 million on the famous stick-man TV ads.

I ask again: Is the mail-in ballot system engineered by the government to convince you to agree to keep the HST?

Is this exercise in democracy really just an expensive sham?

Why the secrecy, Mr. Penner? Why the secrecy, Ms. Clark?

(NOTE: If you want information on the HST Referendum, go to the Elections BC website here. If you don't have it already, you have until midnight July 22, 2011 to ask Elections BC for your ballot. Call 1-800-661-8683 as soon as possible.)

Exclusive: Campbell crony helped craft HST referendum

Bend over B.C.!

The July 15 edition of the Whistler Question includes a fine column by one of British Columbia's best journalists, Sean Holman. But Mr. Public Eye, the answers to the Sudoku puzzle and everything else on page 15 are second fiddle to the photo.

I mean The Photo.

An opponent of the unpopular harmonized sales tax affixed a larger than life appendage to the larger than life replica of the Vancouver 2010 Winter Olympics' logo that reads "Bend Over B.C."

The opponent did so on the very day HST collection began. Many have called Premier Gordon Campbell and finance/Olympics minister Colin Hansen liars deserving Pinocchio noses after they said "no HST" during the 2009 election and then introduced it two months later.

At least one person did the math and understands that Olympic host province B.C. is now paying for the $6.5 billion party with the HST. Why? Because of that nasty word that begins with O.

Owe!

Click the photo to enlarge. If you can't read the cutline, here it is:

Phallic protest: Someone who was obviously no fan of the harmonized sales tax (HST) decided to make a statement by altering the inukshuk outside the Pemberton Visitor Centre on July 1, the day the new tax took effect. The message on the other side of the… um, thing said, "Here comes the HST." The alteration was erected and prematurely removed early in the morning.