The Federal government cut the GST (the federal sales tax on goods and
services which Ontario later blended into the PST to create the HST)
by two percentage points. The federal government could have
transferred this cut to income taxes instead, i.e. it could have
decreased taxes on income instead of on the GST. Sources of income
that taxes are paid on include labour (work) as well as investment
earnings. Assuming that taxes are to be cut, which tax cut do you
believe is more beneficial for long run economic growth, a GST/HST
reduction or an income tax reduction? Assume that either of the
reductions would be revenue neutral, i.e., the federal government
would forfeit the same amount of revenue with either tax that is cut.
You are to back up your argument with sound economic reasoning and
concepts that you have learned in this course.

Paper details:Topics covered in the course:
• Disruptive innovations and life-cycle patterns of change
• The Auto industry
• Pharma-Biotech industry
• Innovation via Organic Growth
• Computers, the internet and the digital economy
• TLCs and MA innovation index
• Looking ahead: China