Friday, May 27, 2005

A 4.5% sales tax in BC?

The British Columbia Chamber of Commerce is lobbying the BC government to reduce the provincial sales tax to 4.5% from 7.0%. A reduction to 4.5% would give BC the second lowest sales tax in the country. Alberta has no provincial sales tax.

What do you think? Should BC lower its provincial sales tax?

Full story here.

4 comments:

Anonymous said...

I would say no, BC should not lower the sales tax. Instead, if they are looking to spur economic growth and lower the overall tax burden in BC, they should lower income taxes.

Taxing consumption is preferable to taxing income.

John Murney said...

Why not lower both the sales tax and income tax? Surely the B.C. Government can afford to lower both sets of taxes, can't it?

Anonymous said...

BC should not lower the sales tax it should just eliminate it.

Anonymous said...

I'd say lower income taxes. Everyone pays the same proportion of their consumption for sales taxes, so everyone gets to feel the pain of government. Plus income taxes hurt investment and our marginal rates are absurdly high.

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