Should Manitoba implement the HST?
From the Free Press:
"Winnipeg Chamber of Commerce president Dave Angus held a news conference on Tuesday to press the province to move ahead with HST adoption. To do otherwise would be catastrophic for Manitoba businesses, Angus noted, because they would lose out on millions of dollars in input tax credits available in pro-HST provinces.
Angus makes a lot of sense. Unfortunately, the politics of the HST debate is not stacking up in his favour.
The HST requires provincial and federal sales taxes to be applied to the same base of goods and services. In return, businesses producing those goods and services get input rebates on the entire blended sales tax; right now, businesses in provinces like Manitoba only get credits on the federal GST.
It's easy to see why business likes the HST. One tax to collect and remit, more robust tax credits lower the cost of doing business. Where is the downside?
Unfortunately, the HST means consumers must pay additional sales tax on many things that were previously exempt from the provincial levy. That makes the HST a politically risky venture for the governments that embrace it."
From the Free Press:
"Winnipeg Chamber of Commerce president Dave Angus held a news conference on Tuesday to press the province to move ahead with HST adoption. To do otherwise would be catastrophic for Manitoba businesses, Angus noted, because they would lose out on millions of dollars in input tax credits available in pro-HST provinces.
Angus makes a lot of sense. Unfortunately, the politics of the HST debate is not stacking up in his favour.
The HST requires provincial and federal sales taxes to be applied to the same base of goods and services. In return, businesses producing those goods and services get input rebates on the entire blended sales tax; right now, businesses in provinces like Manitoba only get credits on the federal GST.
It's easy to see why business likes the HST. One tax to collect and remit, more robust tax credits lower the cost of doing business. Where is the downside?
Unfortunately, the HST means consumers must pay additional sales tax on many things that were previously exempt from the provincial levy. That makes the HST a politically risky venture for the governments that embrace it."