2. Consumption Tax 2.1 In the first quarter of 2012, John's Dancing School pays $1,000 for a new hardwood floor. The school sells dancing lessons worth $4,000. The GST rate is 5 percent. The PST rate is 6 percent. If John has to pay both GST and PST, calculate John's net GST payment and PST payment. (10 points) 2.2 Question 2.1 shows some of the differences between GST and PST. On July 1, 2010, British Columbia relinquished their provincial retail sales tax systems (PST) and joined the harmonized sales tax (HST) framework. During the summer of 2011, a province-wide referendum was in favour of eliminating the HST and returning to a PST+GST system. On April 1, 2013, B.C. returned to a PST+GST system. Analyze this HST reform in terms of the main criteria of evaluating a tax system, including efficiency, equity and political feasibility. Why did BC residents oppose the HST system? Do you agree with them as a policy analyst? If the BC government or another provincial government wants to implement HST, what suggestions would you give?