There’s lots not to like about the HST. But in this year’s referendum, you will be asked to vote yes, to scrap the new harmonized sales tax and reinstate the provincial sales tax or no to keep the HST.

And as much as the HST has its flaws – we’ll get into those in a minute, the old provincial sales tax is much worse. When it was introduced in 1948, it was bitterly opposed by the labour movement and the NDP, on several grounds, most importantly that it would result in higher prices to consumers. Fifty years, and five NDP premiers later, the PST is still a job killing tax and one that passes along higher prices to consumers.

Bill Vander Zalm, the FightHST organization and the NDP deserve a lot of credit for helping Gordon Campbell and the BC Liberals to understand that voters don’t accept the HST the way it is, with its excessively high rate and its complicated rat’s maze of rebates, credits and exemptions for special interests.

But we need to find a better alternative than reinstating the old PST.

Does anybody seriously suggest that we rehire a duplicate, second set of tax collectors, reprint a duplicate, second set of tax forms and go back to forcing every retailer in British Columbia to follow  two different sets of tax rules, keeping two sets of records and send two separate cheques to two separate governments?

Does anybody seriously want employers to go back to adding 7 per cent PST to the cost of investing in the machinery, equipment and supplies they use to operate?

Does anybody seriously doubt that we’re in a dog-eat-dog competition with places like Ontario, Washington State, China, India and Germany for every available job?

Ontario Premier Dalton McGuinty admitted in September that a yes vote in the B.C. referendum would give his province a boost over B.C. "There's no doubt about it — it will give us a competitive advantage," McGuinty said.

Much has been made of the cost of the coming referendum - $30 million. The Canadian Taxpayers Federation has always spoken strongly in favour of giving taxpayers a veto on tax hikes, either in a referendum or a general election.

In fact, this whole HST mess could have been avoided, if the B.C. Liberals had campaigned openly for the HST in the last election, or announced an immediate referendum when then had the opportunity – in the summer of 2009.

The Fight HST forces deserve a lot of credit for putting taxpayers back on the government’s radar screen – when 700,000 people sign a petition, there’s a hidden message in there.

Rather than being obsessed with the cost of democracy – $30 million in this case – we believe B.C. voters should be concerned with the cost of voting Yes. Consider the $1.6 billion in federal tax dollars transferred to the province because both the Conservative government and the official opposition believe the adoption of the HST to be in the national interest.

Politicians in Quebec are so irate about the billons offered B.C. and Ontario, they’re demanding what they describe as equal treatment for Quebec. Now there’s a switch.

Also, British Columbia needs to be competitive if we’re going to create good paying jobs and keep them in the province. Charging the old provincial sales tax on business machinery, equipment, and supplies pushed up costs for B.C. employers. Under the new system, businesses pay HST, but recover the money from the HST they charge their customers, ensuring the tax is only collected once. These employers account for 30 per cent of the province’s economic activity – and it’s the 30 per cent of the economy that helps pay for the public sector services we all value.

The new harmonized sales tax can be improved for consumers alike – Stephen Harper campaigned successfully on reducing the GST from 7 per cent to 5 per cent, addressing the legitimate concerns of Canadians that their government was gouging them at the checkout counter.

Anybody who wants to reinstate the provincial sales tax needs first to offer a reasonable explanation of how they plan to balance the books if the B.C. economy loses its competitive edge and people start losing their jobs. Even with $1.6 billion in federal incentives for the HST, the province is forecasting a deficit of $1.7 billion this year. And our provincial debt – $34 billion when the current government took office in 2001 – is forecast to grow to $55 billion by the end of 2013. Interest costs will consume $500 for every man, woman and child in the province in this year alone.

Those who want to keep the HST need to offer a compromise of lowering either the HST or other taxes to compensate consumers. 

So when you’re in the voting booth this year and trying to decide whether to go back to the job-killing PST or to keep the HST and work on making it better. You already know the answer.