Is HST TAX Bullshit - who does it really Benefit?

[slowpoke]

....I also philosophically object to legal services being taxed. Large corporation will swallow the tax and spit it out as a cost of doing business and will pass that along to the consumer, but small business and people trying to defend them selves against criminal accusations will be hosed.

I agree with most of what you're saying but I don't get the part about large corporations passing along the extra [HST] costs of doing business to the consumer. The consumer will pay extra taxes of a number of items that weren't taxable before (like legal fees and gasoline etc). But most business will get back nearly every penny of HST they pay for goods and services. So businesses won't be passing along any extra costs because their costs will be going down. I've already noticed that the companies we deal with don't mind paying HST because they'll get more of it back than they did before. Companies are expected to pass along those savings - not extra costs. The consumer will still pay a bit more but competitive pressures are expected to force companies to pass a lot of their HST savings back to the consumer in the form of lower prices.

 

[fmahovalich]

Well I do l know places like Paradise Spa started charging it once HST came on line.

Seemed strange to me...given that the business is somewhat UNDER THE TABLE....and the actual girls are 'Contractors'...

But hey....it seems to work for them. I can't see it lasting, because NOT ONE OTHER place charges HST as an 'Added' tax.

Oh well..each business owner must learn on their own!

 

[groggy]

The HST is a regressive tax that targets lower income earners over higher income earners, and doubly so since it seems to have replaced the income lost by lowering of corporate taxes. It should be replaced with an equitable, progressive taxation system.

 

[oldjones]

HST=GST+PST. So is this a thread about Sales Taxes, or about one particular flavour? Sorta like asking. what's your opinion about Spumoni isn't it? As if how you liked pistachio, chocolate and cherry had nothing to do with anything.

 

[GPIDEAL]

The HST is a regressive tax that targets lower income earners over higher income earners, and doubly so since it seems to have replaced the income lost by lowering of corporate taxes. It should be replaced with an equitable, progressive taxation system.

No it doesn't. Low income earners are eligible for a HST refundable credit. Since HST is a consumption tax, it is the wealthy who buy more and pay more.

In any event, the HST replaced the PST + GST where the PST was not a flow thru for many, many businesses or products, thereby making that tax an unnecessary or inefficient part of the cost when it was layered thru the production or sales chain.

What I hate though about the HST is the Refundable Input Tax Credit (RITCs) which is a partial payback to Ontario until 2018, but a pain in the ass from an administrative POV.

 

[groggy]

No it doesn't. Low income earners are eligible for a HST refundable credit. Since HST is a consumption tax, it is the wealthy who buy more and pay more.

In any event, the HST replaced the PST + GST where the PST was not a flow thru for many, many businesses or products, thereby making that tax an unnecessary or inefficient part of the cost when it was layered thru the production or sales chain.

What I hate though about the HST is the Refundable Input Tax Credit (RITCs) which is a partial payback to Ontario until 2018, but a pain in the ass from an administrative POV.

The refund only touches on the total cost of the tax. Poor folk pay a substantially higher proportion of their income on HST eligible expenses, so it hits them harder.

 

[GPIDEAL]

The refund only touches on the total cost of the tax. Poor folk pay a substantially higher proportion of their income on HST eligible expenses, so it hits them harder.

You're not following.

Consumers were paying 8% plus 7% before the HST and only getting a refundable GST sales tax credit (based on 5%). Products potentially cost more because of the inefficiency of the PST which was a tax on tax on tax and buried in the cost of production. Savings from the HST system will ultimately work their way thru (and have so since introduction). That's an economic benefit that you don't factor in your statement.

As for the HST refundable tax credit, what do you mean by the 'refund only touches on the total cost of the tax'? They get a refund if they fall below a certain level of income. Therefore, the refundable tax credit helps not to make the HST regressive. Presumably, those below the eligibility threshold are considered 'poor'.

We already have a progressive taxation system, which lower income earners already benefit.