Quote:
Originally posted by RawAlex@Nov 8 2004, 11:34 PM
Hell Puppy, sales tax only just encourages people to work off the books all the time. You need to come to Quebec, where there is more than 15% sales tax - it isn't hard to find someone willing to work partially or completely in cash, it is a very normal question.
I went shopping a couple of years back with a visitor to Montreal. Go to the store, fidn what he was looking for, ask the price. $200, tax in. How much for cash? $160. How much for US cash? $110.
It all depends how you ask the question.
Thus, a sales tax as the only source of government revenue is, well, just not going to work out.
Alex
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Yup. And the higher the tax rates, the more people are willing to circuvent the law -- that's what I was explaining above about the way people's incentive structures get distorted.