For Hudak to be in the premier's office next year, you'd need a coup d'Ã©tat. The next election isn't until 2012.
It's not administrative costs that they would save, Solaris. Businesses pay PST on the full value of goods all along their supply chain. For example, a car parts company pays 8% on the total value of the steel they buy, then the car assembler pays 8% of the full value of the car parts they buy, then the consumer is charged 8% of the car. It makes our exports much less competitive. By contrast, a value-added tax like the HST taxes only the value added by each person that processes the product. The car parts company would only pay tax on the difference between the price of their steel inputs and the price they charge for the finished car part.
Note that the savings in production costs can (and in this economic climate likely will) be passed along to the consumer, not only providing savings to the consumer but also making Ontario products more attractive compared with imports.
I love when right-wingers throw around terms like "tax grabber" as if McGuinty sits gleefully in his office cackling about all the taxes he's managing to collect. It's not like he personally benefits from any of this. It would be much easier for him to just slash taxes and run up the deficit. He'd probably soar in the polls. The health premium was the single most wrenching decision he had to make, but he was faced with an unexpectedly enormous deficit and unless he wanted to cut even more than Harris had, he had to do something. Besides, our taxes are still a fraction of what they were in the 80s, and weren't we oh-so-suffering back then. People have been trained since the Reagan era to demand ever-improving services and ever-dropping taxes. It is an incredibly difficult job for a politician to balance the two, and I think McGuinty has been doing a remarkable job.