🚀 go-pugleaf

Richard Bonner wrote:
> 
> 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


I just thought I'd  add that the input tax credits also remove embedded 
taxes which were a result of an item being taxed several times before 
getting to the consumer. So pre HST not only did you pay a tax on the 
tax. PST on the GST but there were really several hidden taxes that were 
passed directly on the consumer without the consumer being aware of it. 


Disclaimer
This is my opinion and does not necessarily represent that of my employer