BC voters now have an extra two weeks to decide whether to keep or get rid of the harmonized sales tax (HST).
Declining income pushed a national measure of Canadian household debt to a record high in the three months ended in September, Statistics Canada reported Monday.
The Canadian Real Estate Association (CREA) says national home sales activity continued to trend down in July 2010. The decline was almost entirely the result of fewer sales in British Columbia and Ontario. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.
For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).
The B.C. government has cancelled a proposed mail campaign to support its Harmonized Sales Tax because it says public reaction to the new tax has been better than expected.
Finance Minister Colin Hansen said he pulled the plug on the HST mailer Wednesday during a Liberal caucus meeting in Vancouver.
“I think the roll out of the HST has been smoother than we had anticipated,” said Hansen.
Low and middle income families will be better off with the HST according to new research from the Fraser Institute.
The think tank has found famiies making less than 80-thousand dollars a year will pay less tax over-all thanks to the new HST Credit and Provincial Income Tax Reductions.
Study author Niels Veldhuis says the HST won’t even affect when tax freedom day is held next year. “We calculated that the tax freedom day would basically not change as a result of the HST,” he says, “so we’re not going to be working more for government, we’re not going to be paying more taxes. that of course is not to say that tax freedom day is too early.”