Quote:
Originally Posted by mariners_fever
In this particular case, it would require a large administrative effort at the federal level to first charge the tax then determine how much should be disseminated to each municipality depending on which ones opt in. Each municipality would then add another level of bureaucracy to ensure that they received the correct amount then disseminate those funds properly as the city sees fit.
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How much extra bureaucracy would it take to collect a 6% GST instead of a 5% GST? My guess would be none. Change the number on the form.
As for the distribution, it could take anywhere from very little to tons. If they just divide up the money every year mechanically (either by population or by location of the business) it shouldn't cost that much. If there is a new funding mechanism with applications and mandarins deciding the details, then it could get very costly.
I'm actually in favour of the GST going up, but I'd rather see personal income taxes go down a compensating amount, than the money be spent. But if it was going to get spent on anything, direct transfers to municipalities for infrastructure would be my first choice.