How will the Harmonized Sales Tax create jobs?
Lowering the minimum wage will create crappy jobs that no one wants, and will lower the wages for everyone in crappy jobs. And that would make conservatives happy. Enough about that. How will HST create jobs? Basically, as things stand now, when a company buys something it has PST charged on it, unless they are buying it for re-sale. So the cost of business is higher by the amount of PST that businesses pay on their inputs. With HST, and GST in general, businesses get to claim back their GST as input tax credits, and so their costs of production don’t include any GST (or HST) that they paid. Thus costs of production are lower, which will attract more business investment, which will bring more jobs either through new businesses coming here. And costs of production will be lower, so prices will be lower, so businesses here willl sell more stuff, which will need more workers to make it. By changing from PST to HST there will be a one time permanent improvement in our economic efficiency,
