(06-18-2022, 02:19 AM)WLU Wrote: "IF" they're buying gas instead of other "luxuries" O.K. But there's still a ton of people who haven't given up on any "luxuries" to buy gas. They pay the current higher prices of fuel including HST, suck it up and move on and then pay the HST on their other purchases that they would normally pay it on. There is more HST being collected from these consumers.
Regardless, I can only speak for myself and I haven't had to give up anything just to purchase more expensive gas and judging by the amount of cars on the roads out there, I'm not alone.
By definition you did have to give up something else. If gas prices were lower, but you drove the same amount, you would have more money. Even if your employer was reimbursing your gas cost, that's still money they would have otherwise had. That something might just be savings, but that's still something you have given up.
That extra money would have been spent on something. If your personal budget is in surplus then that something might not have been today, it might have gone into your savings. But ultimately, unless you were planning to have a cash bonfire, someday that money would be spent on something.
Maybe you wouldn't spend that money until retirement, but until retirement you'd still have put that money to some use (e.g. buying assets). Even if you left it in the bank, the bank would lend that money out (fractional reserve banking) and the borrowers would spend it.
Fundamentally high gas prices cause a reallocation of money within the economy, but they aren't going to be significantly positive on HST revenues (if they're positive at all). In fact, the larger economic slowdown that's likely to result will probably depress overall HST revenues.