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Is it finally time for a Sales Tax?

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  • Is it finally time for a Sales Tax?

    I always like the idea of a provincial sales tax.


    I thought - cut my income taxes, let me save more and let me decide when and how much I want to give to the gov't in taxes via my spending.


    Also, I hated being taxed on savings and investments for the future. Moreover, I was raised with the idea that saving is good and spending is bad. - Though spenders are my heros - for keeping most us us employed.


    What surprised me though was that in the past Albertan's weren't jumping at the chance to shift half of the income tax collections onto a sales tax to balance out and hopefully even stabilize the system.
    Last edited by KC; 10-02-2010, 08:48 AM.

  • #2
    ^as I am in a higher income group, for me personally, a reduction in income taxes, and increased sales tax, would be favourable. This is because sales taxes are regressive, they hit poor people more than rich, because poor people spend a greater % of their take home pay (wealthier families save more). You can try and offset that with various complicated and expensive exemptions and rebates (which the poorest people probably aren's sophisticated enough to claim anyway, like the homeless), but even so, the net effect is almost always a shift in favour of higher income households. This is part of why far right groups in the U.S. almost always support sales taxes and getting rid of the IRS.
    Last edited by moahunter; 10-02-2010, 09:05 AM.

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    • #3
      Originally posted by KC View Post

      I thought - cut my income taxes, let me save more and let me decide when and how much I want to give to the gov't in taxes via my spending.
      Although I am not opposed to the idea, just want to point out that it is unlikely both of those things will happen. We might get the sales tax, but income tax would not go down. In Alberta, it cannot be any lower than it already is.

      I would also not mind Alberta income tax go to a progressive taxation with Alberta Health premiums making a return as part of the progressive income tax.

      To me, there is no evil in reasonable taxation. The evil is in unreasonable spending.

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      • #4
        I personally think we should get rid of all sales taxes, the government doesn't have a revenue problem but a spending problem.

        For example health care spending exceeds the rate of inflation by at least double, for example in the past 5 years we have been increasing the health care budget by 10% per year, this year's budget was an increase of 17%.

        We do not need two or more levels of taxation there should only be one system of taxation either sales or income, not both, we don't need the administrative costs of running both systems.

        No we don't need a provincial sales tax, we need a government willing to make hard choices and not listen to every single special interest group's whim and desire. Last time I checked doctors and teachers have university degrees, they should be "sophisticated enough" to live within their budgets.

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        • #5
          i think we should just shoot all the sick people or ship them off to Cuba. that would bring health spending under control.

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          • #6
            Didn't Michael Moore say Cuba had a perfect health care system, with doctors getting paid the same as garbage men? Of course if it was perfect why were so many people risking their lives on rafts trying to get to Florida.

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            • #7
              ^ I didn't realize it was sick and injured people rafting from Cuba to get health care in Florida.
              Strathcona City Separatist

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              • #8
                No sales tax...1. Income taxes would not go down, gov'ts are overstuffed pigs and would eat more and more and more if you gave it too them...2. Anything that prevents people from spending is not good for business which is not good for employment

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                • #9
                  Originally posted by moahunter View Post
                  ^as I am in a higher income group, for me personally, a reduction in income taxes, and increased sales tax, would be favourable. This is because sales taxes are regressive, they hit poor people more than rich, because poor people spend a greater % of their take home pay (wealthier families save more). You can try and offset that with various complicated and expensive exemptions and rebates (which the poorest people probably aren's sophisticated enough to claim anyway, like the homeless), but even so, the net effect is almost always a shift in favour of higher income households. This is part of why far right groups in the U.S. almost always support sales taxes and getting rid of the IRS.
                  I'm kinda in the middle. I'd like poor people to pay at least some tax so they know their actions will affect their taxes, but also I believe in progressive taxation as studies have shown that if you don't tax the balls off the rich, they spend a large amount of their money out of city, province, and country, and can even have a net drain on the economy.

                  I suppose I wouldn't mind a small sales tax if we also went progressive taxation, taxed the lower income folks a few percent, dropped taxes a bit for most of us middle-income earners, and ramped it up for the wealthy. Overall we'd see some increase in taxes collected, and a fairer distribution of who pays, since nobody would be getting a free ride anymore.
                  "Men never do evil so completely and cheerfully as when they do it from religious conviction" - Blaise Pascal

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                  • #10
                    Originally posted by RTA View Post
                    ^ I didn't realize it was sick and injured people rafting from Cuba to get health care in Florida.
                    Interestingly, a large percentage was their prision population / criminals, who were encouraged to leave. Floridas crime rate went through the roof after the "exodus" in the 1980's.

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                    • #11
                      Someone delete this thread QUICK!!!!!!!!

                      If you like PST, move to a Province that has it! Personally, I like saving money when I spend money.

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                      • #12
                        Originally posted by KC View Post
                        I always like the idea of a provincial sales tax.


                        I thought - cut my income taxes, let me save more and let me decide when and how much I want to give to the gov't in taxes via my spending.


                        Also, I hated being taxed on savings and investments for the future. Moreover, I was raised with the idea that saving is good and spending is bad. - Though spenders are my heros - for keeping most us us employed.


                        What surprised me though was that in the past Albertan's weren't jumping at the chance to shift half of the income tax collections onto a sales tax to balance out and hopefully even stabilize the system.
                        It's not the first time this has been brought up over the years, and the answer remains the same - NO!
                        aka Jim Good; "The sooner you fall behind, the more time you have to catch up." - Steven Wright

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                        • #13
                          Originally posted by moahunter View Post
                          ^as I am in a higher income group, for me personally, a reduction in income taxes, and increased sales tax, would be favourable. This is because sales taxes are regressive, they hit poor people more than rich, because poor people spend a greater % of their take home pay (wealthier families save more). You can try and offset that with various complicated and expensive exemptions and rebates (which the poorest people probably aren's sophisticated enough to claim anyway, like the homeless), but even so, the net effect is almost always a shift in favour of higher income households. This is part of why far right groups in the U.S. almost always support sales taxes and getting rid of the IRS.
                          Consumption tax rebates are not hard to claim for... you just file your taxes and all the rest is calculated by the tax man.

                          A well introduced sales tax would actually see the working poor pay LESS tax.

                          This has been discussed before on another thread.. I supplied a bunch of facts and figures, but peoples knee jerk " OMG TAX FREAKOUT" took over.

                          I am all for Prov sales tax harmonized with the GST.
                          "Do you give people who already use transit a better service, or do you build it where they don't use it in the hopes they might start to use it?" Nenshi

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                          • #14
                            Originally posted by edmonton daily photo View Post
                            Consumption tax rebates are not hard to claim for... you just file your taxes and all the rest is calculated by the tax man.
                            You are going to do that for the homless people on the streets so that they can claim some money back off their booze purchases? It is all extra administration and extra cost.

                            I agree with others though, that new taxes are not the answer. It just encourages politicians to waste more, which is the last thing we need given how much they are all ready spending for us.

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                            • #15
                              We definitely need more fiscal responsibility from our government before we hand over more of our cash.
                              "Men never do evil so completely and cheerfully as when they do it from religious conviction" - Blaise Pascal

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