Coming Soon To The US: A National Sales Tax

February 1, 2013   |  

key_art_the_taxman_cometh

One of the bad and good things about emigrating to the US from another less economically free country – fleeing actually – is that you have first hand knowledge of what is in store for us – since it seem that our lord and savior seems hell-bent on taking us down the same path.

In Canada, and in many other less economically free nations, such as the UK, the extremely high cost of all of the spending and social programs require that the government raise taxes. Since the gaping maw of the state really knows no bounds, they must look at many sources for revenue. In Canada, most provinces (read states) have a sales tax, just like states do here. A while back, desperate for funds, the federal government imposed a 9% federal goods and services tax, aka GST, which was simply implemented by the equivalent of an executive order up there, to the horror of the people of Canada. So reviled was this tax that the party that brought it in was practically crushed in the subsequent election. However, despite that, no one in government wanted to stop the massive flow of funds from this tax. So the tax stayed in place. Eventually, Canadians grew to simply live with the new tax burden, since no one was going to take it away.

BTW, you think 9% is bad? Imagine the compliance costs for businesses large and small! A real economy killer. But what did the state care. Their coffers would be full. Who could argue against the flood of new cash!

The GST was modeled after similar taxes in Europe, which in the UK is now 20%! And this was a tax on everything! Even services! you paid when you bought a doughnut, and you paid when you got a haircut. No one was spared! Even the poor had to pay, although some of them, if they were poor enough, could ask for some of the money back.

Long story short, our government continues to spend with wild abandon, but they have yet to fully crank up the engine of taxation. Now that they’ve increased income taxes, watch out for a new, federal sales tax on everything, on top of what you are already paying now. Other countries have done it – why not mimic them as well. After all, they got used to it over there, the same could happen here, now that the American people are well on their way to being turned into gunless sheeple. You’ve been warned.

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