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Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?


To: marcos who wrote (48129)8/1/1999 11:35:00 AM
From: Achilles  Respond to of 108807
 
It's interesting though, Marcos, that in the USA the National Sales Tax is being backed by right wing anti-tax groups. In Canada and Europe it seems to be the invention of the center and left. I guess you as a Canadian would prefer to have no National Sales Tax at all and higher income taxes? But the choice really offered would presumably be a slightly lower sales tax or a slightly lower income tax. Which would you prefer?

According to the Cato organization (http://www.cato.org/pubs/pas/pa-272.html), which advocates the tax, a revenue neutral sales tax would have to be 15% *tax inclusive* (i.e. an item costing $85 comes to $100 with tax), or 18% according to regular calculations. If payroll taxes are to be replaced too, this would require a sales tax of 23% (again tax inclusive, which means 30% according to normal calculations).

A 30% national sales tax would I think not be popular.