The fact the HST, in Ontario anyways, targets the basics, such as electricity, heating and fuel, tells me it’s a fools hope to think an improved business climate will lead to lower prices. Fact is, everybody will pay it on the chin for the most elemental needs, and hope some other, mostly tertiary items, are cheaper as a result of lowered costs. You do the math, it’s hard to see how it’s revenue neutral, in fact it resembles a scenario wherein corporate taxes are lowered, while personal taxes are raised. Maybe the bottom line for the government might be revenue neutral (say proponents), but the BURDEN has changed once again.
I received my first "hush money" from the Ontario government, the fact it was sent part proof positive that it will impact me adversely. On top of this one year "transition" payoff, we hear that personal income taxes will be lowered in the future, if it turns out consumers have been negatively affected. Curious, to make these assertions, when you are trying to argue the opposite now, there will be no adverse affect.
I note that fiscal conservatives and business are the HST’s biggest fans. Generally, these people hate any new tax, because that burden will leave less disposable income, acting as an ultimate drag on the economy. And yet, here we are, people arguing the classic trickle down economics nonsense that has already shown itself a failure. Taxing new homes, home renovations, what a terrific way to stimulate growth? The raw materials don’t suddenly get cheaper, the cost of gas isn’t lower, so where oh where will we find these terrific savings based on competitive capitalism? If history is our guide, about all we will see is more money divvied up amongst the executive class. Oh maybe a few crumbs will fall from their mouths, but human self interest tells us the fat cats will retain as well.
This HST isn’t a wash for the consumer, it’s a shaft. It’s disguised corporate welfare that we all have to pay for. The argument that it will increase jobs is superficial, because if my disposable income is affected, I’m paying more for CORE costs, I’m buying less goods and services, which contradicts the supposed benefit. This is a case where theory never translates to the practical, and unfortunately we all pay for the error.
Anyways, between the higher electricity costs and higher internet fees, I best logoff right now, because this post is killing my bottom line!