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The Time is Still Right for BC’s HST

Author

Listed:
  • Finn Poschmann

    (C.D. Howe Institute)

  • Alexandre Laurin

    (C.D. Howe Institute)

Abstract

British Columbia is on the right track with its controversial move to a harmonized sales tax (HST), according to this report. The authors say the shift to a value-added tax mirrors patterns in most of the developed world, and helped move the province from being a high tax, investment-unfriendly jurisdiction, to one which is domestically and internationally competitive – a more attractive home for investment and jobs. Consumption taxes like the HST in BC impose smaller burdens on the economy, per dollar of government revenue, than alternatives such as old-style retail sales taxes or taxes on personal and business incomes. For this and other reasons, conclude the authors, BC residents are well served by the new HST.

Suggested Citation

  • Finn Poschmann & Alexandre Laurin, 2011. "The Time is Still Right for BC’s HST," e-briefs 119, C.D. Howe Institute.
    • Handle: RePEc:cdh:ebrief:119
    as

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    File URL: https://www.cdhowe.org/time-still-right-bc%E2%80%99s-hst
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    References listed on IDEAS

    as
    1. Colin Busby & William B.P. Robson, 2010. "Disarmed and Disadvantaged: Canada’s Workers Need More Physical Capital to Confront the Productivity Challenge," e-briefs 107, C.D. Howe Institute.
    2. Bev Dahlby & Ergete Ferede, 2011. "What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 324, March.
    3. Michael Smart, 2007. "Lessons in Harmony: What Experience in the Atlantic Provinces Shows About the Benefits of a Harmonized Sales Tax," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 253, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fiscal and Tax Competitiveness; British Columbia (Province); harmonized sales tax (HST);
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

    NEP fields

    This paper has been announced in the following NEP Reports:

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