My biggest concern (and I haven't heard this mentioned yet so maybe someone can clarify it) is that it sounds as though the tax is going to be limited to goods or services produced in Canada. If a Canadian company is struggling to compete with foreign competitors and the Canadian company is suddenly hit with a tax that the foreign manufacturer doesn't have, then clearly this hurts the Canadian business and forces them to take a lower profit-margin, or raise prices and lose sales.
I'm also concerned about the opportunity for price gouging: If a business's costs go up .5% as a result of this tax, and they raise their prices 2% and blame it on the government.
|