Taxes. Just the sound of the word makes most cringe.

On July 1, 2010 the provincial government of Ontario, under the leadership of Dalton McGuinty and the Liberal Party, introduced the Harmonized Sales Tax (HST). The tax, which combines the previously used provincial sales tax (PST) and the goods and services tax (GST) is applicable to many items that previously went untaxed, or were only affected by the eight per cent PST.

In a commercial put together to inform Ontario citizens of the benefits of the new tax, McGuinty argued that the tax will "reduce the costs for employers by billions of dollars" and "create hundreds of thousands of new jobs."

The fear among consumers is based on the amount of money the HST will cost them. Citizens of Ontario will face up to an eight per cent increase on many items used on a daily basis that previously were only subject to GST.

So how does this new tax affect students?

The most important thing to discuss as it pertains to students is how the HST will affect education. Luckily, the three most important items students require will not face a direct tax hike: tuition, textbooks and rent.

This is good news for students, especially those who are forced to pay for their own education. With tuition prices expected to increase and textbook prices already high, this tax break will leave students a little extra money in their pockets at the end of the day.

This of course, is not to say that students won't feel the squeeze of the HST. Quite the contrary actually, as many items students use on a regular basis will see an increase.    

The tax on rent may not see an increase, but this doesn't mean your rent won't.

According to the Revenue Canada brochure being distributed to homes throughout the province, items such as landscaping, electricity, heating, cleaning services, Internet access, and home renovations face an eight per cent added to the tax. Students planning on renting a house for the fall can expect an increase in the cost of rent.  

Many other items students use on a day-to-day basis will be affected by the HST. The first, and perhaps most obvious is fuel. Any student who drives to school is paying an extra eight per cent for gas. Municipal public transit and GO transit will not see an increase on their taxes, but the increased cost of fuel could likely result in an increased cost for riders.     

Students looking to take part in local activities will also face the brunt of the new tax. Gym memberships, as well as recreational sports such as karate or ballet, will see the increase as well.

Grooming will also see a tax increase. Although only a portion of the student population receives manicures and pedicures, it is necessary for everyone to have haircuts, all of which now cost students an extra eight per cent.

Alcohol, a staple of many students' diets, will not see a tax increase. Technically the tax on alcohol should decrease from 17 per cent to 13 per cent; however, the Revenue Canada brochure states, "other alcohol fees and taxes are changing to continue to support social responsibility." In other words, to promote people not spending their money on alcohol, the price will stay the same.

The Revenue Canada website says only 17 per cent of items will see a change.

Even though only 17 per cent of items will see a change; the HST will have an effect on the lives of students. Whether they want to get a taxi home from the bar on a Friday night, or get a hamburger at the school cafeteria, students will feel the difference HST makes.