Society works best when people are informed and treated with respect. The provincial government plays with the words “will” and “can” so that people may be misinformed about how the HST will help us.
Below is some of their rhetoric. The bold emphasis is from the government. The underlining is mine.
You’ll see that while the HST will statutorily remove hidden taxes, that’s easy for the government to control. But the government is careful to say that this only CAN lead to lower prices for us.
Who controls final prices? The corporations. When their process taxes reduce, who is going to compel them to reduce their final prices accordingly? No one.
Their desire for profit will lead them to avoid passing those reduced costs onto consumers unless suitably threatened.
How HST can lower prices for you
The HST will remove hidden taxes that are paid and compounded on every stage of a manufactured product.
As shown in the car repair example, the current provincial sales tax is paid on everything a business needs to operate. That cost gets passed on to you. By reducing that cost, the final price tag can also be reduced.