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Originally Posted by Harry Lime
I would also mention that a consumption tax favours the rich, as the money spent by the poor and middle class remain somewhat constant to reach the necessities of life. The rich however can simply bank money and either spend in another jurisdiction, or sit on it. (You would have to look at it as spending as a percentage of income, rather than total money spent)
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You know they don't charge GST on [most] groceries, prescription drugs, etc. right? The list of exempted items could probably be expanded, but when you factor in GST rebates, the poor aren't particularly harmed.
Obviously, consumer spending is good for the economy. On the other hand, I think the proliferation of thoughtless consumerism (especially in NA) hasn't been particularly good for society or the environment. Carbon taxes are better at targeting 'goods' over services, but I think there is more potential to incentivize better consumer choices through targeted taxation (sugar tax, etc.). A well designed PST could be a step in the right direction.
Quote:
Originally Posted by Handsome B. Wonderful
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So...you're proving his point? A 3% drop in some of the worst times...not exactly turning off the taps of sales tax revenue.