Hst

[AbstractAngel]

Ok, I think I have a better understanding of the tax now. From what I get it's basically Reaganomics for the soc.ialist. It's a way to stimulate the economy and lesson the overall taxes paid every step of the way on services and products. In the long run it will stabilize prices and possibly lower some prices on minor products to help fight inflation.

Would this be a correct assessment?

Yes, basically the way "AbstractAngel" relates it is this:

On some things (Whatever the government deemed necessities) you used to either pay no tax, or only half the tax (7%). When the HST came into affect, you instantly overnight paid %13 on everything, across the board. This is a noticeable change, and something that outrages many people (in BC for example, us Ontarians are so nihilistic we wouldn't care if you upped it %20 lmao j/k j/k...). The bigger picture is that in the long run, the tax break on manufacturers all along the way will eventually drive prices down, so people will pay the same they used to (or even less) because of competition, and businesses will be better off. But this will take time and patience, it's not an overnight thing, and not technically a guarantee (though it's proven to be positive in many places). This is why people are upset, because all they have seen right now day-to-day is higher prices, with no actual promise prices will decrease if the companies wish to be unitedly greedy instead of competetive.

Now, I'm being generic, but here is a way to break it down. A break down of how it goes now vs how it used to go (old system was in red):

1. The people who gather scrap metal sell it $0.50 to the bolt manufacturer.
The people who gather scrap metal sell it to bolt manufacturer at $0.50 with 7% tax added on.
2. The people who manufacturer the bolts sell them at $1.00 to the Toolkit Assembly Company.
The people who manufacturer the bolts sell it to the Toolkit Assembly Company at $1.00 with 7% tax added on.
3. The toolkit company sells it to WalMart for $10
The toolkit company sells it to WalMart for $10 with 7% tax added on.
4. The customer purchases the finished product for $20.00 with %13 tax.

Now, that adds up, and fast. With the new system, it doesn't have unnecessary taxes on manufacturer, in the long run helping with taxes. Since the consumer used to only pay %13 on some items/services and 7% themselves on others, they notice the change more, but in reality, those prices will decrease because the people making the products won't have to spend as much creating the product, shipping it, etc.

[abracax]

I despise taxes but I like the way the US does it, it makes more sense lmao