🚀 go-pugleaf

scotia@ra.isisnet.com wrote:
: cannet@istar.ca (Brad Morrison) wrote:

: >On 4 Dec 1996 16:57:55 GMT, speirs@chebucto.ns.ca (Robert Speirs)
: >wrote:
: >
: >>Incorrect. Since the cost of very basic expenses for businesses, such as 
: >>electricity, will increase, it is easy to predict that all prices will 
: >>rise. Economics 101 and common sense.
: >
: >Actually, since business will get an input credit for the 15% tax on
: >all goods/services purchased, this isn't true.

: Brad,

: What you're suggesting about the BST input credit is true,
: but you're forgetting that businesses have always been able
: to deduct the full cost of all PST expenditures as an
: expense against revenue.

: Paul

***   Sorry Paul, but a business does not get the PST back if it's the 
end user. That is, on goods bought to resell a business pays no PST 
because it collects PST when the goods are sold. However, on something 
like office supplies where the business consumes these items as the end 
user, the PST must be paid by that business. 

   With the BST/HST ALL tax paid by a business is received back. So the
argument by Robert that since basic items are now taxed and therefore 
increases must be passed on to the consumer, is incorrect. 

Richard