3 Oct 2010, 11:51am
HST Income Tax:
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Real Cost of a $100 Restaurant Meal

This is a simple example of how consumers are loosing purchasing power with HST tax laws.
To purchase a restaurant meal costing $100 subject to HST (12%), you will need $112.
To have $112 in disposable income after taxes, (employment income tax rate is about 22%), you will need a gross income of $136.64. Next time you go to Restaurant and your tab is $100, here is how much money you will need to make to pay for that meal.

Meal $100.00
HST (12)% on $100 12.00
Tips (15%) on $112 16.80
Restaurant bill $128.80
Income tax (Source Tax 22%) 36.30
Total income to Earn for the Meal $165.10