Remember how many taxpayers did not want the HST and listened to the all mighty gods of Bill VanderZalm and the BC NDP party? Well here is what they did not tell you about B.C. Personal Amount and Spousal Amount tax credits, which is part of the non-refundable tax credit form. These tax credits were INCREASED in 2010 with the implementation of the HST, to offset added expenses, in other words, to even things out with the new tax.
These amounts will be reduced for 2013 because of the re-implementation of the PST. The 2013 tax credit adjusted with the return of PST has the personal amount at $9,859 and spousal amount at $8,442. If the HST had carried on, these amounts would have been the personal amount at $11,524, and spousal amount at $10,113.
Because the PST was not re-implemented until April 1, 2013, the full year tax credits will be blended rates to reflect the higher credit amounts for the first three months of 2013 in which the HST applied, and the lower credit amount for the nine months in 2013 in which the PST applied. The resulting blended rates for 2013 are the personal amount at $10,276 and spousal rate at $8,860.
The end result is the HST is gone, but taxpayers must now pay more income tax because of less non-refundable taxes.
The end summary is that Bill VanderZalm and the B.C. NDP forgot to mention, “THAT YOU CANNOT HAVE YOUR CAKE AND EAT IT TOO.”