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Old 11-09-2004   #20
Buff
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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
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.
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