No HST on anything in the store! (if you are a biz that is)

I just read an article in the Economist quoting the Facebook data centre guy citing the lack of a sales tax in Oregon as a main reason they set up a mega data centre there.    They swap out servers every three years and would face a huge sales tax bill in many jurisdictions.

In Canada, someone decided that businesses should not pay sales tax so that is one advantage that New Brunswick has and should be able to quantify.  How about thousands of servers – what would be the HST on those?

I know it bugs someone people but New Brunswick businesses pay very little tax relative to many other jursidictions (sorry, CFIB).  KPMG says NB has the lowest total tax burden (payroll, property, sales and income taxes) for corporations of any jurisdiction in North America.

This should be quantified and flogged.  “If you put your data centre in New Brunswick,  you will save $$ million in sales tax alone compared to x and y jurisdiction”.


1 thought on “No HST on anything in the store! (if you are a biz that is)

  1. I read this as just one more bit of the accumulating evidence that low taxes do not attract businesses like a magnet, contrary to what we keep reading.

    We have taxes that are almost below 0 percent, and yet the businesses still do not come. What will attract them? The continued trial-and-failure of the ‘low tax’ plus ‘business incentive’ recipe is getting stale now.

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