Kevin Milligan ~ Department of Economics ~
University of British Columbia
Update: We have now received some more names : we're at 91+9=100. And since the campaign is almost done, we'll stop at the even 100--thanks to everyone who participated!
A pdf copy of this letter is available here.July 4, 2011
The upcoming referendum on the HST and the PST/GST system presents an important choice for British Columbians. As the ballots will soon be arriving in the mail, we think it is important as economists to speak out on the way we view the debate.
While economists have different views on how to achieve a fairer economy, we are united in the belief that switching back to the old PST/GST system is the wrong way to address important social and economic problems.
It is well known that value added taxes (like the HST) are superior to retail sales taxes (like the old PST). Because the PST taxed some inputs at every stage of production, the 'cascade' of compounding taxes led to higher tax rates on investment. The HST, in contrast, taxes only final products at a clear and transparent rate. This is why 140 countries in the world use value-added taxes like the HST, and only a few jurisdictions in Canada and the United States still use taxes like the PST.
Economists know that removing a penalty to investment will produce more investment in capital goods like equipment, machinery, and buildings. These investments support growth in jobs and wages. Removing investment barriers like the PST from the tax system is best for the long-run prosperity of the province.
Many economists are also concerned about the fairness of outcomes produced by the economy. The new HST Credit, by providing $230 per year for each family member in low income families, helps to improve the fairness of the switch to the HST. Moreover, by exempting basic food and rent, the burden of the HST on lower income households is again lightened.
We believe the HST represents a step forward for our tax system and for our economy. We urge you to consider these facts and to fill in your referendum ballots.
Signed,
Jock Finlayson
Executive Vice President of Policy
Business Council of British Columbia
jock.finlayson@bcbc.com
604-684-3384
Kevin Milligan
Associate Professor of Economics
University of British Columbia
kevin.milligan@ubc.ca
604-822-6747
with the support of 89 more economists from the academic and private sectors.
Listed below are the names of the economists who have signed the letter. The affiliations are listed for identification only and does not necessarily imply institutional support. Please contact Jock Finlayson or Kevin Milligan for more information about this letter.
| Doug Allen | Professor of Economics | Simon Fraser University |
| David Andolfatto | Professor of Economics | Simon Fraser University |
| Werner Antweiler | Professor and Chair in International Trade Policy | UBC Sauder School of Business |
| Christopher Auld | Associate Professor of Economics | University of Victoria |
| David Baxter | Senior Research Advisor | Urban Futures |
| Paul Beaudry | Professor of Economics and Canada Research Chair in Macroeconomics | University of British Columbia |
| Charles Blackorby | Professor Emeritus of Economics and Past-President of Canadian Economic Association | University of British Columbia |
| Anthony Boardman | Van Dusen Professor of Business Administration | UBC Sauder School of Business |
| Matilde Bombardini | Assistant Professor of Economics | University of British Columbia |
| David Bond | Chief Economist (retired) | HSBC Bank Canada |
| Sam Boutziouvis | Vice President, Policy | Canadian Council of Chief Executives |
| Clive Chapple | Instructor of Economics | University of British Columbia |
| Percy Christon-Quao | Department of Economics | Kwantlen Polytechnic University |
| Brian Copeland | Professor of Economics | University of British Columbia |
| Michael Devereux | Professor of Economics | University of British Columbia |
| Erwin Diewert | Professor of Economics | University of British Columbia |
| Mauricio Drelichman | Associate Professor of Economics | University of British Columbia |
| Merwan Engineer | Professor of Economics | University of Victoria |
| Mukesh Eswaran | Professor of Economics | University of British Columbia |
| Martin Farnham | Assistant Professor of Economics | University of Victoria |
| Jock Finlayson | Executive Vice President, Policy | Business Council of BC |
| Patrick Francois | Professor of Economics | University of British Columbia |
| Jane Friesen | Associate Professor of Economics | Simon Fraser University |
| Linda Gagne | Assistant Professor of Public Administration | University of Victoria |
| Giovanni Gallipoli | Assistant Professor of Economics | University of British Columbia |
| David E. Giles | Professor of Economics | University of Victoria |
| Mike Goldberg | Former Dean | UBC Sauder School of Business |
| David Green | Professor and Head of Economics | University of British Columbia |
| Dominique Gross | Professor of Public Policy | Simon Fraser University |
| Elisabeth Gugl | Assistant Professor of Economics | University of Victoria |
| Sumeet Gulati | Associate Professor, Food & Resource Economics | University of British Columbia |
| Keith Head | HSBC Professor of Asian Commerce | UBC Sauder School of Business |
| Thomas Hellman | B.I. Ghert Family Foundation Professor in Finance and Policy | UBC Sauder School of Business |
| Ross Hickey | Assistant Professor of Economics | UBC Okanagan |
| Glen Hodgson | Senior Vice President and Chief Economist | Conference Board of Canada |
| Stephen Hume | Senior Instructor in Economics | University of Victoria |
| David Jacks | Associate Professor of Economics | Simon Fraser University |
| John Janmaat | Associate Professor of Economics | UBC Okanagan |
| Warren Jestin | Sr. Vice President and Chief Economist | Scotiabank |
| Alexander Karaivanov | Associate Professor of Economics | Simon Fraser University |
| Hiro Kasahara | Assistant Professor of Economics | University of British Columbia |
| Jonathan Rhys Kesselman | Professor of Public Policy and Canada Research Chair in Public Finance | Simon Fraser University |
| Anke Kessler | Professor of Economics | Simon Fraser University |
| Alfred Kong | Lecturer in Economics | University of British Columbia |
| Ashok Kotwal | Professor of Economics | University of British Columbia |
| Brian Krauth | Associate Professor of Economics | Simon Fraser University |
| Roslyn Kunin | Economist | Roslyn Kunin and Associates |
| Ehsan Latif | Assistant Professor of Economics | Thompson Rivers University |
| Thomas Lemieux | Professor of Economics | University of British Columbia |
| Michael Leonard | Department of Economics | Kwantlen Polytechnic University |
| Martina Lui | Ph.D. Candidate in Economics | University of Victoria |
| Bernard Magnan | Chief Economist and Assistant Managing Director | Vancouver Board of Trade |
| Vadim Marmer | Assistant Professor of Economics | University of British Columbia |
| Michael Maschek | Department of Economics | University of the Fraser Valley |
| Joan McEachern | Department of Economics | Kwantlen Polytechnic University |
| Kevin Milligan | Associate Professor of Economics | University of British Columbia |
| Steeve Mongrain | Associate Professor of Economics | Simon Fraser University |
| Gordon Myers | Professor of Economics | Simon Fraser University |
| Heinz Nussbaum | Department of Economics | Kwantlen Polytechnic University |
| Martha O'Brien | Professor of Law | University of Victoria |
| Helmut Pastrick | Chief Economist | Central 1 Credit Union |
| Donald G. Paterson | Professor Emeritus of Economics | University of British Columbia |
| Ken Peacock | Chief Economist | Business Council of BC |
| Krishna Pendakur | Professor of Economics | Simon Fraser University |
| Finn Poschmann | Vice President of Research | C.D. Howe Institute |
| Donald Reddick | Department of Economics | Kwantlen Polytechnic University |
| Angela Redish | Professor of Economics | University of British Columbia |
| John Richards | Professor of Public Policy | Simon Fraser University |
| Craig Riddell | Professor of Economics and Past President of Canadian Economics Association | University of British Columbia |
| John Ries | HSBC Professor of Asia Business | UBC Sauder School of Business |
| Tom Ross | UPS Foundation Professorship in Regulation and Competition Policy and Senior Associate Dean, Faculty and Research | UBC Sauder School of Business |
| Brian L. Scarfe | Contract Professor of Economics and President, BriMar Consultants Ltd. | University of Victoria |
| Nicolas Schmitt | Professor and Chair of Economics | Simon Fraser University |
| David Scoones | Associate Professor and Chair of Economics | University of Victoria |
| Marvin Shaffer | Adjunct Professor of Public Policy | Simon Fraser University |
| Lance Shandler | Department of Economics | Kwantlen Polytechnic University |
| Andrew Sharpe | Executive Director | Centre for the Study of Living Standards |
| Henry Siu | Associate Professor of Economics | University of British Columbia |
| Margaret Slade | Professor Emerita of Economics | University of British Columbia |
| Tsur Somerville | Real Estate Foundation Professorship in Real Estate Finance | UBC Sauder School of Business |
| Barbara Spencer | Asia-Pacific Professor in Trade Policy | UBC Sauder School of Business |
| Kenneth G. Stewart | Associate Professor of Economics | University of Victoria |
| Lindsay Tedds | Assistant Professor of Public Administration | University of Victoria |
| Francesco Trebbi | Associate Professor | University of British Columbia |
| Graham Voss | Associate Professor of Economics | University of Victoria |
| Linda Welling | Associate Professor of Economics | University of Victoria |
| Ken White | Professor Emeritus of Economics | University of British Columbia |
| Ralph Winter | Canada Research Chair in Business Economics and Public Policy and Past President Canadian Economic Association | UBC Sauder School of Business |
| Joel Wood | Senior Economist | Fraser Institute |
| Simon Woodcock | Associate Professor of Economics | Simon Fraser University |
| Larry Wosk | Lecturer in Business Economics | UBC Sauder School of Business |
Here are some 'bonus' signatories, whose names came in after we sent the letter to the Vancouver Sun. We welcome their support equally!
| Jen Baggs | Associate Professor, Gustavson School of Business | University of Victoria |
| Richard R. Barichello | Professor, Food Nutrition & Health | University of British Columbia |
| Don Drummond | Former Chief Economist | TD Bank |
| Ted Mallett | VP and Chief Economist | Canadian Federation of Independent Business |
| Ed Mansfield | MNP LLP | |
| Carol McAusland | Associate Professor and Canada Research Chair in Trade and Environment, Faculty of Land and Food Systems | University of British Columbia |
| Masao Nakamura | Professor, Sauder School of Business | University of British Columbia |
| Jim Vercammen | Professor, Food and Resource Economics and Sauder School of Business | University of British Columbia |
| Mahek Yaseri | Department of Economics | Capilano University |