Here's what I think...

July 1st the new harmonized sales tax (HST) will increase by 2%.

I believe that this is going to have a very negative impact on our economy.

A family of four can see as much as a $1000 a year less disposal income as a result of this tax increase.  When you think of the $1000 a year that could be used for a tank of oil, a mortgage payment, registering your children in sports programs, part of your grocery bill for a year, insurance payment and the list goes on and on, you can see very quickly how an insignificant amount  of 2% can drastically have a negative affect on you and your family.

As far as business is concerned this new tax is simply a flow through.  In other words, it has very little impact on business.  However it does impact consumers and particularly the retail market where businesses must incur costs to gear up for this new tax increase. Ultimately you and I as consumers will pay this added cost.

An example of just how expensive this is:  for every $10,000 you clear after taxes you will pay an additional $200.  This on the surface doesn't seem like much, but again, if we talk about a family of four with both partners working who may clear $50,000 a year after income tax, this combined, will lose $1,000 of disposal income.

For a senior or pensioner, the impact is even more difficult.  For instance a pensioner on a fixed income has no avenue to increase their income to make up for the increased tax.  Even though some provisions have been made for people on a very low pension income.

This is a very serious blow to everyone on a pension.