Dear Editor:
There seems to be considerable angst among a certain segment of our society regarding the recent referendum that nixed the HST, notably big business and certain professionals who are disciples of trickle-down economic theory. The message is uniform: Deciding tax policy by referendum is dangerous.
And, of course, they're right. They correctly argue that tax policy is a complicated matter that involves deciding tax revenue distribution objectives, economic impacts, administration costs, and so on.
It is a matter best left to informed politicians who have access to various and sundry experts to help them comprehensibly study the matter in order to arrive at rational and reasonable conclusions. No argument there.
However, the referendum was not intended to usurp the responsibility of our elected representatives but, rather, it was a judgment on the government's performance in the pursuit of that responsibility.
After 10 years of a tax "policy" that seemed to be knee-jerk rather than long-term (not to mention favouring as opposed to fair), the HST was the straw that broke the public's back. It was recognized as a poorly constructed ploy to shift the sales tax burden onto consumers, as well as to create a cash cow by
extending the tax to heretofore exempt items. Put in its proper perspective, contrary to corporate generated opinion, the referendum was not used to decide tax policy, it was used to call a government to account. That done, the responsibility to implement a fair and reasonable tax policy still rests with our elected legislative body. If there is a caveat it is that there should be some public discussion prior to formulation. The only comment from the premier is that she will be concentrating on "strengthening free enterprise" in the province. Given that emphasis, I doubt work towards a fair taxation system is on the horizon. The least we might hope for is that they will stop taking us for fools.
Bill Brassington, Burnaby
