I've already said that exempting the first $400k for all new homes makes more sense (or exempting nothing at all). Most of the arguments seem to be that the HST will destroy the new housing market, which is of course absurd.
It grossly affects the housing market of downtown Toronto. It's fine for someone living in the suburbs to casually give a pass to this tax, but the reality is quite different elsewhere. Earlier in this thread, you misperceived this tax as one on the wealthy. The reality is that a majority new middle class homes in and around downtown Toronto can easily be priced at $400,000 and above.