Quote:
Originally Posted by Bunk
Wouldn't that drive a lot of out of province spending, especially on big items like automobiles?
Also, isn't a consumption tax system (without income taxes) regressive in the sense that it places a disproportionate burden on those that don't/can't save a lot (low income?). Low income earners have to consume large proportion of their incomes just on necessities of life. Wouldn't a lowered income tax rate and no (or low) consumption tax help them more?
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Auto's are exempt because they have to be registered in the province that you drive them in and will have to pay the taxes when you register.
For your second point, it would have to be done with something similar to the GST rebate for low income people.
It could also be made progressive by eliminating the tax on necessities like food and rent which is a significantly higher portion of a low income persons spending.