Finance Minister Wes Sheridan says, if one can understand what he is saying, that since businesses will get a rebate of a part of the provincial part of the HST, their costs will be lower, so the price to the customer will be lower.
Will they, Mr. Sheridan? Really?
A little history: when the in-the-open GST replaced the hidden manufacturer’s tax, we were told that we would, of course, see prices drop. With very few exceptions, they didn’t. We paid the same prices plus the in-your-face GST.
Adding to the suspicions generated by history, Mr. Sheridan has generated a puzzle: a business pays HST. That business gets back a portion of a portion of that HST. Mr. Sheridan’s new math says that the business will be better off, so their customers will be better off. Are you confused, yet?
For one who manages low finance with some caution, some of these mirrors seem to have smokey glass in them.