politics

Opposition Mounts as Harper Guts Census

Published on:
http://www.thecanadiancharger.com/page.php?id=5&a=526

A census is a tool used by a country’s government and major businesses to respectively tailor services and products to the corresponding population. In Canada, a democratic state, the census holds utmost importance in that regard as a vital communiqué between the people and their elected officials. Taken every five years, it is, as noted by Armine Yalnizyan of the Canadian Centre for Policy Alternatives, “The mother ship of all surveys.”

Given the weight of such a public survey, it wasn’t surprising that many veterans in the Canadian “statistics community” were baffled by Prime Minister Stephen Harper’s decision to no longer make the census a mandatory obligation, but a voluntary one. The head of Statistics Canada (Stats-Can), Munir Sheikh,  arguably the country’s top statistician, has resigned over the matter, and rebuked the Harper administration in a highly publicized letter, stating that a voluntary census won’t work. The statistics that a voluntary census yields will be the consequences of “self-selection”, making it incomparable with previously collected statistics. The same goes for Ivan Fellegi, Sheikh’s predecessor, who also rebuked the Tory decision.

“Others upset include: the Federation of Canadian Municipalities; Atlantic Provinces Economics Council; City of Toronto; Canadian Association for Business Economics; Canadian Economics Association; Canadian Association of University Teachers; Canadian Institute of Planners; Canadian Council of Social Development; even the National Statistical Council (that acts in a consultative capacity for StatsCan),” according to Haroon Siddiqui of the Toronto Star.

The official reason for the decision to make the census voluntary came from Industry Minister Tony Clement, who calls the census “coercive and intrusive.” Another stated reason was to “protect the privacy of Canadians.” However, Harper has had a difficult relationship with Stats-Can since in the past, gutting or changing several other smaller surveys, including the The annual Workplace and Employee Survey, The Survey of Financial Security, and The annual Survey of Household Spending. These were all political decisions, congruent with the Harper administration’s apparent habit of secrecy and obfuscation.

Moreover, ever since Stephen Harper came to power, Stats-Can employees have privately confessed that the agency had shifted in focus, “away from social issues and towards more economic subjects,” reports the Globe and Mail. This certainly points to a more coercive way of managing information by the Tory establishment, who are tilting the methodology of Stats-Can’s data-analysis, thus changing its analytical objectives altogether.

The decision to basically gut the census is just another extension of how the Harper government likes to fiddle with the machinery of government, tailoring its dynamics to fit a “Tory mindset”, so to speak. The Harper administration has gutted numerous NGOs, prorogued parliament (twice), and  spent $1 billio- plus on the G8/G20 summits,  among other deeds. Eliminating a key pillar of Canadian democracy almost seems to make sense when seen in context, and hardly surprising.

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politics

Sense and Nonsense of the Harmonized Sales Tax (HST)

Published on:
http://thecanadiancharger.com/page.php?id=5&a=506

This past Canada Day, both Ontario and British Columbia joined Nova Scotia, Newfoundland, and New Brunswick as the latest provinces to accept the Harmonized Sales Tax (HST) system. The HST combines the Goods and Services Tax (GST) and the Provincial Sales Tax (PST) into one, single sales tax. For Ontario and B.C., the tax comes to 13% and 12% respectively.

The reason for harmonization is threefold: (1) To increase investment in provincial businesses, thus making them more competitive, (2) to create more jobs, and (3) to eliminate hidden taxes incurred throughout operational costs. Adopting the HST will also mean that products that were exempt form the PST will now incur the 7/8% “PST” under harmonization, although some products will be exempt altogether. This process of exemption/inclusion, however, is highly arbitrary, and lacks a democratic basis.

Reactions to the HST have been mixed at best. The NDP have roundly condemned the tax, claiming that it is a tax grab that will help provinces accumulate up to 3.5 billion dollars in revenue, the purpose of which is unclear. Public opinion in both Ontario and B.C. have been vastly negative, with estimates of 90% in both provinces against the tax.

The more conservative-minded C. D. Howe Institute has long been advocating for an HST, citing the aforementioned reasons, and claiming that the HST is harmless to average households given that it is “revenue neutral”. However, the most interesting report probably comes from the Canadian Centre for Policy Alternatives, a progressive think-tank that has done extensive research on the HST, and the role that it is likely to play in Canadian provinces.

The CCPA believes that the HST will hurt modest to middles class income households. Consider that “The BC government is proposing an HST credit of a maximum $230 for individuals with income up to $20,000, and $230 per family member for fami­lies with incomes up to $25,000.” This means that “an individual with $20,000 or less in income would have to spend more than $3,285 per year on the previously ex­empt goods and services listed below in order to be worse off.” These low thresholds may benefit some of the poorest citizens, but middle class families will incur much more tax with the HST.

The CCPA also believe that having increased jobs and business competitiveness as a result of the HST is greatly exaggerated. Cutting operating costs does not necessarily increase investment in businesses, especially when the tactic also includes laying off workers. Rather, investment is based on the future estimations of profits and sales.

It is most important that the revenues incurred with the HST be used for progressive purposes, much like the Scandinavian models. In the Nordic countries, the HST is a progressive tax that helps to build communal infrastructure and social welfare. What Canada intends to do with the HST is still largely opaque. Moreover, the provincial governments should increase the threshold for credit, and decrease it in a slower fashion as incomes increase.

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