Harmonizing GST and PST...

[Keebler Elf]

http://www.theglobeandmail.com/servlet/story/RTGAM.20071024.wcomment1025/BNStory/National/home

An interesting read. It sounds like a good idea but I'm hesitant b/c I'm not sure I've got a handle on what we'd be paying more taxes on.

Off the top of my head I can think of books but that's a really small-fry issue. There must be other things that PST currently does not apply to that GST would.

Thoughts?

 

[Esco!]

Paying taxes is for the 'Little People'

 

[hairyfucker]

Paying taxes is for the 'Little People'

and now she is dead. even her brother does not want her damn dog that is worth millions.

 

[ig-88]

Paying taxes is for the 'Little People'

R.I.P. Leona Helmsley

 

[Esco!]

Rumor has it Leona was an SP

 

[ig-88]

In the US, though there is no federal sales tax, just about every state has a state sales tax, and that is a major source of revenue for the states. It also allows each state to tax goods as they deem appropriate to their venue. For example, people living in California may not have the same problems and priorities as people living in Vermont.

It would seem to me that eliminating PST would step on some people's toes at the provincial level, and they would not be happy about the increasing federalism. Quebec may not share the same need for tax revenue as B.C., or be interested in taxing the same things as Alberta. Or are Canadians more federalist than provincial?

 

[Keebler Elf]

Thus, the fiscal bribery in the form of billions of dollars in "implementation" funds.

 

[Esco!]

In the US, though there is no federal sales tax, just about every state has a state sales tax, and that is a major source of revenue for the states. It also allows each state to tax goods as they deem appropriate to their venue. For example, people living in California may not have the same problems and priorities as people living in Vermont.

It would seem to me that eliminating PST would step on some people's toes at the provincial level, and they would not be happy about the increasing federalism. Quebec may not share the same need for tax revenue as B.C., or be interested in taxing the same things as Alberta. Or are Canadians more federalist than provincial?

But.........DUH....... you forget to mention that States in the U.S. arent allowed to have a deficit.

Therefore this greatly reduces their ability to generate revenues, and/or their ability to impose taxes

 

[1HandInMyPocket]

Off the top of my head I can think of books but that's a really small-fry issue. There must be other things that PST currently does not apply to that GST would.

Groceries, kid's clothes and shoes(under a certain price)

 

[Anynym]

Off the top of my head I can think of books but that's a really small-fry issue. There must be other things that PST currently does not apply to that GST would.

Thoughts?

Umm ... services ?

PST, of course, refers to the Provincial Sales Tax (or the Ontario Retail Sales Tax, ORST); GST refers to the Goods and Services Tax. Sure, there are (as has been pointed out) a few goods which are subject to one tax but not the other. But there are a bunch of services which are (generally) only subject to GST, such as (IIRC) taxis or consultants.

 

[Papi Chulo]

Off the top of my head I can think of books but that's a really small-fry issue. There must be other things that PST currently does not apply to that GST would.

Thoughts?

Thoughts are that it is a cash grab as the harmonized tax would probably be charged on everything, except food.

It is funny, in BC, things for school, for students are not subject to PST, nor are clothes, if they are for children (who could also be in high school / university)... to avoid paying PST, you just have to say that the goods are for school or that the clothes you are buying are for "your kids" and the cashiers do not charge PST

 

[papasmerf]

taxes are like political candidates.........you hate them but one will in

 

[Keebler Elf]

Thoughts are that it is a cash grab as the harmonized tax would probably be charged on everything, except food.

Did you read the article? Sounds like more of a short term increase in tax costs for a longer term savings due to harmonization. Also benefits productivity and lessens the burden on businesses. But that will be hard to measure compared to the immediate costs.

Consider this, it would be one less type of tax to pay...

 

[tboy]

"While consumers will pay more tax initially, the reduced tax burden on business will be shifted into lower retail prices."

BULLSHIT, and this indicates that the person who wrote the article has his head FIRMLY planted up his ass. Fuck me, this pisses me off when people write shit like that.

For eg: I worked for a large Canadian Corporation when the FST was removed from retail pricing and the GST was brought in. Did ANYONE in Canada notice that the retail prices dropped by 13.5%?? NO...why? BECAUSE IT DIDN'T HAPPEN! I knew that the corporation I worked for sent a memo out to all it's dealers stating that with the new tax structure, it is a way for them ALL to realize a 5% increase in profits without doing a damn thing.

A PERFECt example is the retail pricing today with our dollar doing so well. Has anyone seen any price reductions because of this? I know we are TOLD that gas hasn't risen as it would have if our dollar hadn't realized so many gains but has anything else decreased in price? I haven't seen anything.....

 

[agentman]

The Federal Government should focus more on cutting personal income tax instead to offer relief to working Canadians and forget this nonsense of harmonizing the GST/PST.

 

[Keebler Elf]

A PERFECt example is the retail pricing today with our dollar doing so well. Has anyone seen any price reductions because of this?

Yes, I have. Walmart and one of the other big retail chains recently announced price cuts. And we will all see more. How much depends on our willingness to demand lower prices.

A friend of mine buys books and pays the US sticker price b/c he refuses to pay more and the store honours it.

Don't be so cynical. It will blind you to reality.

 

[tboy]

Yes, I have. Walmart and one of the other big retail chains recently announced price cuts. And we will all see more. How much depends on our willingness to demand lower prices.

A friend of mine buys books and pays the US sticker price b/c he refuses to pay more and the store honours it.

Don't be so cynical. It will blind you to reality.

Well that is probably because the government stepped in and put pressure on the retailers to do this. Otherwise I bet we wouldn't see one percent of one percent discount.

It's not being cynical, it is being realistic based on my experience when the GST was brought in. Let's just say it is scepticism not cynicism. Put it another way: we've been gaining on the US dollar for the past year or two and have we been getting price reductions since then? I haven't seen any....and now we've gained almost 50% on the US dollar and that should relate to a 25% reduction in retail prices. Will we see a 25% reduction? LOL NOT.....