Canadian dollar almost at parity with US, will pass it soon

[Wezil]

Originally posted by Dracon II


I can see your point there... but it was confusing and annoying for a foreign tourist, like my Dad, to take a product up to the counter and then get charged more than he thought it cost. He thought he was being scammed the first time it happened.

I understand.

The problem with taxes rolled in is twofold 1) Easier for gov to raise taxes b/c you don't really see them (gasoline is sold this way btw), and 2) If taxes drop(stop laughing) it is easier for the retailer to take the difference. This happened recently with the GST drop. "Services" are taxed GST but many services have tax in price (ie theatre ticket, parking pass etc). Many places just took the 1 cent drop in GST as part of their revenues.

Btw, couldn't find the article I was looking for. Essentially, Cdn prices are still higher than US at par exchange. Reason given is the lag factor between ordering of inventories and selling out of old stock. The dollars rise has been rapid and steady.

[Dracon II]

It would also encourage Canadians to do math. We only have a 10% GST in Australia, but I bet many people wouldn't be able to add 10% of a price in their heads.

I must say that we Australians are probably more likely to roll over and take new taxes up the *** than you north americans (John Howard won the '98 election with the GST as part of his platform)... I think, given your reasons, we should consider separating the GST from the sale price down here. There has been a lot of noise made about petrol excise in recent years (due in most part to high price of crude), but since its introduction in 2000 the GST has become invisible.

[Dracon II]

We both agree that the Republican spending spree and resulting deficit has weakened the U.S.dollar, raising the relative value of the Canadian dollar, yet you claim I'm wrong.

We shouldn't discount the effect that the Federal Funds Rate has had either. From 6% in early 2001, it dropped to 1% in 2003, and it only got back to around 5.25 in 2006. I wonder if the highly discounted interest rates of the early-mid noughties was one of the contributing factors to inflated Government spending, and the current sub-prime fiasco.

If many people selling Greenbacks for Maplebacks (I just made that up, btw), you might wanna look at the relative interest rates of the two countries.

[Wezil]

Originally posted by Dracon II
It would also encourage Canadians to do math. We only have a 10% GST in Australia, but I bet many people wouldn't be able to add 10% of a price in their heads.

Sadly, that ship has sailed. Most under 30 can't do math without electronic assistance.

"Mapleback" has a nice ring to it but the common usage is "Loonie" (yes, really). The $1 coin has a Loon on it.

[Flubber]

bump

[Omni Rex Draconis]

I'm with Dracon's dad on this one. I can imagine what would happen if he went to a grocery store where some stuff is taxed and other stuff isn't.

I like math (do it for fun) and I am good at it, but I would rather not have to juggle the numbers in my head to know exactly how much it is going to cost me.

I dislike haggling over price for the same reason - too much work.

[notyoueither]

Thank God conservatives brought in the GST and left the option it be open and obvious, rather than liberals who would mandate hiding it for the convenience of the dim-witted and Australians.

Hmmm. An obvious and annoying tax... and look, wow, it's been reduced!

Give me odds on a reduction of that tax had it been hidden, like the tax it replaced.

Incidently, it is not a government mandate that has GST added. They give merchants the choice of being +GST or GST included. The only rule on the topic is that a merchant has to be all 1 or the other. No surprises (ironically).

[Aeson]

There's no reason why a sales tax couldn't be obvious and also included in the price. Just print the sales tax rate on the price tag along with the total.

[notyoueither]

The criticism of that is that some or many people ignore the details and simply pay attention to the total.

They do it with pay cheques where giant gobs of cash are being siphoned off their earnings.

The GST as constituted is a massive taxation slap in the face every time a purchase is made. It has captured peoples' attention nation wide like no other tax ever has.

20 years after its introduction, elections are still being won and lost partly on policy regarding the GST.

[Aeson]

Originally posted by notyoueither
The criticism of that is that some or many people ignore the details and simply pay attention to the total.

These people are going to get ripped off sooner or later anyways. Including sales tax in price would be the efficient method, as then it only has to be calculated once. Even those who are mathmatically inclined might have difficulty keeping track of the sales tax on a cart full of items. People who care about what they are paying for could check the receipt if they want, and stay current on what the laws are.

People who can't figure out what they are paying for, and who don't know what the taxes they pay are, are hardly the people who should be pandered to.

Efficiency > dumb people

They do it with pay cheques where giant gobs of cash are being siphoned off their earnings.

The GST as constituted is a massive taxation slap in the face every time a purchase is made. It has captured peoples' attention nation wide like no other tax ever has.

20 years after its introduction, elections are still being won and lost partly on policy regarding the GST.

To be honest, that sounds like an argument for hiding the tax a bit better.

GST is 6%, right? Does it change often? Aren't there more important issues in CA than that? (Honest questions. Here in the US we have gay marriage, evil Cuba, and various sexual escapades of our politicians to blind most voters to important issues.)

[Tingkai]

Having a price with the included tax would make life a lot easier. The only reason for not including the tax in the price is simply so that merchants can advertise a lower price.

The idea that a hidden sales tax is easier to raise is ridiculous. The Conservatives once tried to raise the gas tax, a hidden tax, and were kicked out of office.

As for its effect on elections, the GST helped drive the Conservatives into obscurity for 15 years, an indication of how much Canadians hate the GST (although to be fair, the Conservatives kept shooting themselves in the foot).

But since then, it hasn't been much of a factor. The Liberals promised to end it, but didn't and still got re-elected. The Conservatives cut the GST to 6% in a bid to buy votes. It hasn't worked.

[notyoueither]

Uhm, Tingkai, who's in office?

[notyoueither]

Originally posted by Aeson


These people are going to get ripped off sooner or later anyways. Including sales tax in price would be the efficient method, as then it only has to be calculated once. Even those who are mathmatically inclined might have difficulty keeping track of the sales tax on a cart full of items. People who care about what they are paying for could check the receipt if they want, and stay current on what the laws are.

People who can't figure out what they are paying for, and who don't know what the taxes they pay are, are hardly the people who should be pandered to.

Efficiency > dumb people

I'm buying 100 bucks worth of stuff. I'm going to have to pay $106 at the check out, and I'm being made very aware that government has costs.

Pretty effecient from a certain POV.

To be honest, that sounds like an argument for hiding the tax a bit better.

Yes, but many are not in favour of making our governments' ability to tax and spend any easier.

GST is 6%, right? Does it change often? Aren't there more important issues in CA than that? (Honest questions. Here in the US we have gay marriage, evil Cuba, and various sexual escapades of our politicians to blind most voters to important issues.)

Yes, recently reduced to 6% from 7. Only changed once so far, but the current government will campaign on a further reduction of 1%.

Here in Canada Asher can get married as many times as he wants. None but the loons care. The cynical among us are smug in the awareness that he may end up paying some form of support. Everybody should have to suffer.

We have an evil US and our politicians strangle people if their poll numbers are going down.

We talk about the weather and argue about hockey. Politics and taxes are what we shout at each other about when we aren't having sex or talking about the snow storm getting back from the last hockey game.

[Tingkai]

NYE:
The Liberals got re-elected after not abolishing the GST.
The Conservatives bid to buy votes by cutting the GST 1% has not helped them in the popularity polls.

Most Canadians are resigned to the fact that the GST is here to stay even though they hate it and a 1 per cent cut doesn't much difference to them.

What people do remember is that the Conservatives created the GST.

[notyoueither]

I guess they forgot then, since they elected the Tories again. 1 of the 5 major planks leading to that Tory government was a reduction in the GST.

And no, many people have not forgotten 'axe da tax' and the whole Chretien schtick. In fact, the Liberals are still paying for it.