Path: utzoo!utgpu!watmath!grand!rwwetmore
From: rwwetmore@grand.waterloo.edu (Ross Wetmore)
Newsgroups: can.general
Subject: Re: That F'n Fed. Sales Tax is Gonna *HURT*!!
Message-ID: <28364@watmath.waterloo.edu>
Date: 15 Aug 89 05:39:50 GMT
References: <KIM.89Aug13013635@watsup.waterloo.edu> <1989Aug13.161201.7535@tmsoft.uucp> <KIM.89Aug14155657@watsup.waterloo.edu>
Sender: daemon@watmath.waterloo.edu
Reply-To: rwwetmore@grand.waterloo.edu (Ross Wetmore)
Distribution: can
Organization: U. of Waterloo, Ontario
Lines: 19

In article <KIM.89Aug14155657@watsup.waterloo.edu> kim@watsup.waterloo.edu (T. Kim Nguyen) writes:
>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

  I think you must have missed something. The GST is a 'value added tax'
which means that the intermediary pays tax only on what it consumes and 
effectively gets a rebate on any tax paid on materials which go into a 
final product. The final consumer pays 9% (period).
  But then again, maybe I've been missing something ...

Ross W. Wetmore                 | rwwetmore@water.NetNorth
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