Some Provinces Have Opted to Replace Their Provincial Retail Sales

question 20

Essay

Some provinces have opted to replace their provincial retail sales tax with a harmonized sales tax that is integrated with GST. British Columbia adopted a harmonized approach and then decide to return to a provincial retail sales tax. Discuss why you think all provinces have not adopted and kept a harmonized system.

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Definitions:

MR = MC

An economic principle stating that profit maximization occurs when marginal revenue equals marginal cost.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain those activities.

Economic Effects

The influence of various factors, including policies, market shifts, and external events, on the economy's performance, structure, and behavior.

Income Transfer

The reallocation of money from one group to another through mechanisms like taxes, subsidies, welfare payments, or other social assistance programs.