An economist from a left-wing think tank said the harmonized sales tax a step in the right direction during a UNBC symposium on the issue, but added there is room for improvement, particularly in softening the impact on low-income earners.
Among the pros of the HST listed by Iglika Ivanova, a public interest researcher at the Canadian Centre for Policy Alternatives, was that it will treat goods and services equally, streamline collection and eliminate sales tax on business inputs, all in contrast to the provincial sales tax.
"By all means, it seems kind of silly to tax business inputs that go into production," she added.
But Ivanova also noted that consumption taxes put a greater burden on poor people because they spend a greater proportion of their income on essentials. She also said the timing may be wrong given the fragile nature of the economic recovery and doubted it would do much for B.C.'s economy because U.S. demand for forest products is simply so low.
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