Looks like the Vancouver City council is facing a future revenue shortage and the latest thinking to bridge the gap is a new B&O tax. Every business owner I have talked to is very much against this new tax. I think the reason is because it is seen to be unfair. For those of you unfamiliar with a B&O tax it is basically a percentage of revenue. You can be making a loss and still have to pay the tax. This type of tax particularly hurts start-ups who generally lose money in their first few years of operations. To be honest, I don’t know much more than what I read in the newspaper but I plan to educate myself on this one.
I think most of us understand that taxation is necessary to pay for the services that make this a community worth living in. I for one like the way downtown Vancouver is developing but taxation needs to be fair. I have a friend in the UK who has a lot of exposure to various tax structures around the world and he tells me that of the industrialized nations he believes only Turkey has this type of tax.