Path: utzoo!utgpu!watmath!watcgl!kim From: kim@watsup.waterloo.edu (T. Kim Nguyen) Newsgroups: can.general Subject: Re: That F'n Fed. Sales Tax is Gonna *HURT*!! Message-ID: Date: 14 Aug 89 19:56:57 GMT References: <1989Aug13.161201.7535@tmsoft.uucp> Sender: daemon@watcgl.waterloo.edu Followup-To: can.general Distribution: can Organization: PAMI Group, U. of Waterloo, Ontario Lines: 28 In-reply-to: mason@tmsoft.uucp's message of 13 Aug 89 16:12:01 GMT In article <1989Aug13.161201.7535@tmsoft.uucp> mason@tmsoft.uucp (Dave Mason) writes: In article kim@watsup.waterloo.edu (T. Kim Nguyen) writes: >textbooks!?!), ... what else!?? I can't believe the gall of the govt, >to tax someone 9% on a 6-figure price for a house! Most of that house is currently covered by an 11% FST. It's really only the final assembly (Gee, sounds like Free Trade :-) that is newly taxed. While this is not insignificant, it is not really much of a bump on an already overinflated house price. Moreover, it will not apply to resale homes, and there will be a rebate to make it ``revenue neutral'' for reasonably priced homes. It's really only in the Toronto market (and possibly a few other overheated city markets) where it will make a noticeable difference. It will also make building your own home more attractive. Is the FST applicable ONLY to new houses??? I was under the impression that ALL house sales were subject to the new tax. Another point I'd like to make concerning the FST: it will add up to a lot more than 9%, since the tax is applied at ALL levels -- so if you buy a new house, the builder pays FST on the materials, FST on various other services he purchases, and *THEN* you pay another round of FST on the total price. This (I believe) will apply to all goods which go through distributors, wholesalers, retailers, etc. -- Kim Nguyen kim@watsup.waterloo.edu Systems Design Engineering -- University of Waterloo, Ontario, Canada