real-mccoy

Will business owner reduce price? Yes, I will. For Example, before HST, my profit is 30%. Why? It means that business category accept this profit range between all companies. (market competition) After HST, if I have 10% more from hidden PST, my profit raise to 40%, the market will reset to 30% very soon. Of course, if the business is an exclusive, no competition, they do not need to have price reductions.

Maybe you will drop the price.  What about the others?  If a customer is willing to pay $10 for an item when we have GST/PST, is there any intention to drop the price to $9 because the seller save more money from HST?  Wouldn't it be better to keep it in their pocket?  When will the market reset to 30%?  It's almost a year since we have HST, I don't see how positive for us so far.

real-mccoy

It just unreasonable to set 500% profit margin, unless it's monopolize market.  Like what I said before, if they can sell a product at $10 with the 2 tax system, why would they sell it at $9 with HST?  Sure cost is lowered, but that doesn't mean the benefit is transferred to the customers.  Corporations basically made more money without increasing the price.

Now, let's assume it's $10 billion.  Doesn't that look better on the books with a billion more with a higher profit margin?  I am sure The Board don't mind that.  Sure, the money save *may* be re-invested back in BC.  It might also end up as year end bonus for the CEO.  Are we expecting out of goodwill that  they will share the benefit with the customers?

I will believe it when I see it.