On frozen rates

Andrew Steele is right to criticize the Ontario PCs' attempt to make hay out of a theory that the McGuinty government would try to raise the HST. But it's worth noting that the Libs themselves don't seem to want to acknowledge the reason why the accusation is so far-fetched:

I've noted before that the preliminary agreement between the Harper Cons and the McGuinty Libs provided that the province would be required to keep the HST rate where it is for at least two years following implementation. And that's made all the more clear in the comprehensive agreement that's since been signed between Jim Flaherty and Dwight Duncan:

15. The Parties agree that the PVAT Rate in respect of the Province will be 8% as of the Implementation Date.

16. The PVAT Rate in respect of the Province may be increased, or decreased, in accordance with the provisions of this Agreement after a minimum period of two years from the Implementation Date. Following that two-year period, any change in the PVAT Rate in respect of the Province, as permitted under the provisions of this Agreement, will not occur more often than once in any twelve-month period.

So for the same reason why the PCs' calls for a reduced HST rate were always misplaced, it's equally off base to suggest that a scheme which locks in the rate until at least the summer of 2012 somehow reflects a conspiracy to raise it.