Nelly, another one for you - Do high sales taxes

**homesteadmamma** · 12-11-2002, 08:30 PM

Hurt the economy.

Our government is looking at raising our taxes again. We pay 7% sales tax (provinicial) and 7% GST (federal) on pretty much everything we purchase except children's clothing, under 14 and most food items. Other than that we pay a full 14% on everything.

I firmly believe raising taxes will hurt our economy.

What are your thoughts on this?

**Nelly** · 12-13-2002, 10:02 PM

LOL!! Do I now have a reputation of knowing about the economy? I just had a chuckle when I read your post. Don't take me wrong, though; I like having to think abou these things, but I'm no expert no matter how much I wish were.

About the 14%, do you mean that if you buy shoes, for example, there is a 14% sales tax? I think that is quite high. Here in taxes our sales tax is about 8.25%. Texas does not have a state tax so I think we're pretty lucky there. I think of taxes as a double-edge sword or as a necessary evil. Nobody likes to pay them but everybody benefits from them.

The move Pres. Bush made last year, for example, in cutting taxes, I did not agree. Sure I liked getting that late refund of $200 or $300 and for some people even more, but I also like going to a nice park, or to the library or riding on smooth roads. Besides, when these things are under construction, it gives unskilled, usually poor workers, a good job, even if it's only for a while. That has definitely have to help the economy.

I do think 14% is quite high. But does that prevent the purchases? Probably not. It may delay them some and I think manufacturers will accomodate to that. I also think that taxes will not be allowed by the population to get to a point where it chokes economic activity. So to answer your question, I think very high sales taxes can slow economic activity but in either case, I don't think the population would let it get to that point.

Nelly

**frugalmel** · 12-14-2002, 10:09 AM

Homestead mama the state taxes here in Tennessee are 9.5%.

They just increased it last year. The state budget is in a mess. I hope they figure it out soon because it is hurting the schools here. Nelly, I also enjoyed my refund last year, but I do think we could have used the money for something "national" like parks or roads, etc. Just my 2 Cents.

**Phaedrae** · 12-14-2002, 04:41 PM

We need to take into consideration that taxes are so much higher in Canada because of the free health care. If you took that away taxes would drop.

AS to our taxes being lowered I think it was good. Why should people have to pay a tax to be married? for having kids?

Besides it seems that we could have more national parks and roads, ,etc.. if the government could keep their eyes on the problems within our country instead of trying to solve all the problems in the world by starting wars.