It’s nice to see that the Federal Department of Finance agrees with me. I said during the provincial government’s discussion on taxation that reducing consumption taxes would be a benefit to foreign manufacturers because it stimulates more consumption. Here’s a quote from the Globe today:
“..domestic spending triggered by handouts could benefit foreign manufacturers, it noted. “We import 27 per cent of goods we consume. This rises to 50 per cent for durable goods,” Finance says.”
Of course, their context is the stimulative budget while mine is that I think it is a good idea provincial government idea of raising the HST to 15% and simultaneously cutting income taxes or putting in place tax incentives for specific company expansion activity – but the logic is the same.
However, you will recall that the NB Tories and several editorials were highly critical of raising the HST – so I don’t think it wil happen.