HST to hit consumers hardest: TD
Tax harmonization will cost consumers, study says
Updated: Fri Sep. 18 2009 4:15:05 PM
The Canadian Press
TORONTO — The TD Bank says harmonization of the federal GST with provincial sales taxes in Ontario and British Columbia will result in an immediate and permanent increase in costs for consumers in those provinces.
TD economists Don Drummond and Diana Petramala estimate in a new report that the increase in taxes paid by consumers on goods and services will increase the consumer price index in those two provinces by 0.7 percent and result in a 0.4 per cent bump in the national inflation rate.
The economists argue that tax harmonization will save companies about $6.9 billion.
Some of the savings will be pushed through to consumers but not enough to completely offset the increase in consumer prices..
The economists say the measure is welcome, however, because harmonization is a more efficient manner of collecting taxes and will increase competitiveness in the two provinces.
The TD Bank says harmonization of the federal GST with provincial sales taxes in Ontario and British Columbia will result in an immediate and permanent increase in costs for consumers in those provinces.
TD economists Don Drummond and Diana Petramala estimate in a new report that the increase in taxes paid by consumers on goods and services will increase the consumer price index in those two provinces by 0.7 percent and result in a 0.4 per cent bump in the national inflation rate.
The economists argue that tax harmonization will save companies about $6.9 billion.
Some of the savings will be pushed through to consumers but not enough to completely offset the increase in consumer prices..
The economists say the measure is welcome, however, because harmonization is a more efficient manner of collecting taxes and will increase competitiveness in the two provinces.
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