Sunday, November 18, 2007
HST for ONT
Our family business in 1990 manufactured many products that were subject to the 12% MST. As soon as the GST was introduced in 1990, we immediately reduced our prices by that 12% tax and our sales increased.
We made more money and paid more money in federal and provincial taxes.
I don't have a problem with the government harmonizing the GST and PST.
What I don't get is the argument against it being we don't want to give all products that are currently PST exempt to now be subject to the PST. Or, it could be a huge windfall for the provincial government.
How about this solution:
Figure out how much the PST brought in last year (about $14 Billion if I recall the last budget, but I stand to be corrected)
Figure out how much the HST would bring in at 8% and reduce it accordingly.
If the HST would bring in $16 Billion, reduce by 1 point.
Or leave it the same and dedicate 1% to cities.
I would be willing to accept a 12% HST (7%+ 5%) on everything I had to buy.
I would also be willing to accept 13% HST on everything I had to buy if it would shut David Miller, Hazel McCallion and all the other whiners the hell up.
As to the plan to give 1% to cities... That's going to cause trouble. How is the 1% allocated to the cities? Based on retail sales within the city? Based on population? Based on some other formula of business activities? I can see constant bickering as to how to allocate the revenue to the cities, which could make provincial equalization arguments seem simple by comparison. I'd rather the cities just raise their own revenue locally--lower the federal taxes and let the the cities tax the way they want, and the local voters can pass judgement on the local council accordingly.
I never thought I'd see the day where being in Mississauga meant paying more taxes.
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