About Me-email is... grant.go@aol.com

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garden bay, west coast, Canada
persistent digging,never say never

Friday, February 24, 2012

BC Budget and Transitional Rules, Under the Microsope of the Persuader and Mom

First off, before we start I would like to comment on today`s Cutting Edge of the Ledge show.....

A caller was complaining about the hiring by Christy Clark of her and Bill Good`s gal pal Pamela Martin...Billy Good got very angry and showed his true bias and renowned temper, Billy fired back at the caller claiming all parties have political appointments, yet Billy never answered the ultimate question, that being, what exactly does Pammy do besides sit in a hot tub at her Whistler chalet?

There was one intelligent caller near the end of the show that talked about the BC budget and its true meaning, the caller called herself Debra...you can listen to the audio vault and listen to Rebbecca`s call and the silence from Billy Good...

The BC Budget.


The $10,000 dollar one time tax credit for first time buyers, this only applies to NEW housing, so consider this, I know of hundreds of people who have never bought a new home, if first time buyers with little money are looking to buy property in a particular area, consider this, a young family looking at homes in  Langley, used houses can be had for say,,,,$400.000.00....New homes in Langley are $550,000.00.....To access that $10,000.00 that first time buyer has to go way deeper in debt, if they`re financing that house purchase the extra cost through financing blows that $10K by a factor of 10 or more.....Let`s face it, new costs more than used, as with the entirety of this budget the devil is in the details...

Also, most people didn`t know but Harper`s and Christy Clark`s HST applied to all second homes and vacation properties, there was no rebate to the  $550,000.00 dollar thresh-hold mark, you just paid full shot, Christy Clark`s HST decimated that vacation housing market, so again out comes the trickery in the BC Budget....Falcon announced that second homes and vacation properties would now receive the same treatment as to the HST rebate on new homes, to the new amount of $850,000.00K.....But again, the devil is in the details because...
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"To help support workers and communities in B.C. that depend on residential recreational development, purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012."
  • B.C.’s portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay seven per cent PST on their building materials. On average, about two per cent of the home’s final price will again be embedded PST.
  • The temporary housing transition measures will be in place for two years, until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
  • The temporary housing transition tax and the temporary housing transition rebates will be administered by the Canada Revenue Agency on behalf of B.C. The Province is administering the grant for new secondary vacation and recreational homes.
 http://www.hstinbc.ca/buying_goods/buying_a_home/
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Because that ONLY applies to the areas outside of the GVRD and Victoria capital region, those housing markets remained strong throughout the last few years, the reason for that was Chinese money flooding in and over-paying, driving the market...

So in a nut shell, if one wants to buy a second home or vacation home in the greater Victoria area or the greater Vancouver area you will STILL be paying the full HST, in other words the BC Liberals again have picked the winners and losers, home foreclosures in the interior are up exponetially since the HST was rammed down our throats, more proof that Stephen Harper and Jack Mintz are clueless as to real life economics, my mother has more sense than these phony economists...

Why should a buyer be penalized for committing the sin of buying vacation property or second home in the GVRD or Victoria Capital district area?

Voodoo Economics.

There was so much flim Flammery in Christy Clark`s budget, I was waiting patiently for either David Shreck or the mainstream media to highlight these issues but none was forthcoming, too many pundits and those proclaiming to be the greatest are so vacant when it comes to real facts, it`s one thing to rant it`s another to offer up zippo but hyperbole....

The Vancouver board of trade, Jock Finlayson, Phil HACKstein, Michael Levy, Michael Campbell, Peter Simpson of the new builders association, these BC Liberal stooges all came out praising Falcon and Clark over the budget but truth beknown it`s almost all slight of hand...

Let`s cut a little deeper into this scam budget...
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For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.
  • Average amount of embedded sales tax in newly built homes under PST: two per cent.
  • Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent.
  • Tax rate on a newly built home during transition: two per cent.
 http://www.hstinbc.ca/buying_goods/buying_a_home/
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So here`s the deal,  if you buy a new home after during the transition period, which runs to April 1st 2015, you will pay a 2% tax on the entire amount, don`t ask what happens after April 1st 2015 because no one knows, but consider this, if one waits until April 2nd 2015, theoretically that 2% tax disappears, ...

Here is another juicy detail, the average detached home in Vancouver is $850,000.00 dollars, the Province(BC Liberals) were(Before these transitional rules) rebating back the PST portion of the HST up to the $550,000.00 dollar mark, that has now been increased to $850,000.00 dollar mark, buyers will get a rebate of $42,500.00.....But the PST portion of a 12% HST tax is ...7%....7% of $850,000.00 K is......

$59,500.00 K.....In other words you will still pay $17,500.00 K in tax over and above the property transfer tax when you buy a new home....!

A $1 million dollar home will still have during transition period that runs until 2015 an extra $20,000.00K tax bill over and above the property transfer tax,.....

And, as the BC Liberals boasted about the previous rebate thresh-hold of $550,000.00 when average home prices were $850,000.00 dollars, people buying those homes in that range were on average still having to pay the province an additional $16K to $20K in taxes on those homes.....

Well, these transitional rules which run until 2015 all home buyers will be paying 2% on the ENTIRE HOME PRICE, in other words anyone buying a home for $800,000.00 K will still be paying $16,000.00 in tax...A $300,000.00 dollar home buyers will be paying an extra $6000.00 dollars!

 A flim Flam budget designed to confuse while changing very little......

A couple more points before I go...Remember how all the economists, Michael Levy, Michael Campbell, Kesselman, Jack snake oil Mintz, every lying S-O-B BC Liberal including one Christy Clucking Clark loved to talk about embedded PST in our consumer prices, they all claimed prices would go lower or stay the same, the HST added 7% cost to thousands of items and services, added 7% to vacation properties, 7% to used automobiles, 7% to almost everything, .....

Remember that dirt-bag Colin Hansen talking about the removal of embedded 7% PST........Do you need anymore proof that all those bastard and bastardesses were lying....The BC Liberals admitted they were lying through the release of the transitional rules, and I quote....
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"For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.

Average amount of embedded sales tax in newly built homes under PST: two per cent"
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So there you have it, the BC Liberals have admitted at most the amount of embedded PST in new products, even major items like HOMES amounts to 2%.....Yet the BC Liberals were charging 7%...A tax grab of mammoth proportion,,,,We all knew that there wasn`t that much embedded PST, now the BC LIBERALS HAVE ADMITTED  what we knew all along, a low-down dirty tax grab, an extra 5% percentage points of taxation!!!!

Gotcha again you lying BC Liberals
One final point, that second to last phone caller to the Bill Good Cutting Edge of the Ledge show today named Debra, that was my mom...
Roughly 10:54am..February 24th

 http://www.cknw.com/other/audiovault.html


 The Straight Goods
Cheers Eyes Wide Open

5 comments:

Gary E said...

With all their nake oil bullshit the goofs in Victoria have left out one type of person. The "owner builder". An owner builder pays a fee (about $450) to become such. They purchase their own materials and must keep records of the purchases. They have to do all the work themselves unless they have a family member as a trades person to do it. THEY PAY THE FULL 12% on Everything but their own labour. Every time the price of gas or material goes up a person on a fixed income takes a big hit and there is no relief. This budget again is only for the rich. And everything is geared to the May 2013 Election. We get diddley from these assholes.

Don F. said...

Grant'
Your mother did great. They seemed to have trouble coming up with a coherent answer to her questions.
Three years to revert to PST???
There seems to be some confusion.
Don

Anonymous said...

Mintz and Co. want to tax all food now. It never ceases to amaze me what these "economists" say. Terrorists is more like it.

Anonymous said...

http://blogborgcollective.blogspot.com/2012/02/christys-crystal-ball-gazing-government.html

Anonymous said...

Vindictive Gordon Campbell's spite was such, he deliberately set out to kill this province before he got the boot. Campbell and Harper thieved BC's assets and resources. They also forced the HST on us, while in a deep recession.

Christy is doing the same, her parting shots are aimed at the citizens and what ever party wins the next election. Christy too is giving businesses and the wealthy all the breaks, AGAIN. She's busy selling off the last of BC's assets. She is making sure, the next party has absolutely nothing to work with. The next party, will get stuck paying the illegal HST back to, the other snake in the grass Harper. Is this Boessenkool's advice to the Campbell/Clark BC Liberals?