Reality check: HST hangover to hobble retail sector and consumers.

While many in Ontario were loathe to accept the new Harmonized Sales Tax (HST) imposed by Stephen Harper and Jim Flaherty, the fact is the timing of this ill-advised Conservative tax couldn’t have been worst.

Stalled retail recovery: The most recent reports on Canada’s Gross Domestic Product (GDP) came in well below the expectations of even the most bearish economists. Instead of a 0.2 percent growth Canada’s GDP Statistics Canada is now reporting that April’s GDP numbers were flat. The largest decline was in the retail sector which contracted by 1.7 percent.

Hit to your wallet: Since Wednesday Ontario gas prices have increased an average of $0.08 per litre, pushing the price to well over $1.00. This dramatic hike in prices is an example of the immediate impact of the HST. Not only does it hurt commuters but these increased fuel prices are expected to increase the price of shipping on all consumer goods.

Sleeping with an elephant: With the gloomy job numbers coming out of American, outlook in the North American economy have become more pessimistic. The struggling US numbers are threatening to delay Canada’s economic recovery and further cause Ontario’s manufacturing and retail sectors to lose steam.

With a retail sector already in retraction, the increased fuel prices driving up the cost of everything and a US economy losing steam the timing of the HST couldn’t have been worst.

HST in your daily life:

Gasoline and diesel: An overnight $0.08 increase at the pumps.

Canadian post stamp: from $0.57 to $0.61

Taxi: from $12 to $12.90

Haircut: from $36.75 to $39.55

Newspaper: from $1.25 to $1.34

Lawyer fees: from $157-$304/hour to $169-$327/hour

Large double-double affect: from $1.52 to $1.63