Ontario First Nations are losing their point of sale PST tax exemption under the new harmonized federal/provincial sales tax (or it will become more difficult to apply for; I'm not quite sure which). Dalton McGuinty is, basically, pleading with the Harper government to rig things up as per the status quo when the new tax comes into effect(ie the FNs remain exempt), and Harper et al are basically saying "no".
Since the provincial portion of the HST is redistributed from the Federal bureaucracy to Ontario under the terms agreed to in the legislation,what happens if Ontario decides to make changes to their sales tax--drop or raise it a point, add to or withdraw exemptions? Does this now require federal approval--that is, a negotiated change to the legislation? In other words, is the province handing control of this particular tax policy lever over to the Federal government?
I dunno. Not sure I like the idea, though.