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Just the market regulating itself (lemmy.ml)

submitted 3 weeks ago by yogthos@lemmy.ml to c/canada@lemmy.ca

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[-] GreenBeard@lemmy.ca 29 points 3 weeks ago

I will NEVER support the cutting of a sales tax.

I mean, I won't speak for you, but a lot of sales taxes are regressive, hurting the average consumer a lot more than those who can and should be paying more (on account of their benefiting from the common infrastructure more, while also placing greater strain on it), but I will concede there are sales taxes that make sense, and fuel taxes are one of them.

[-] Windex007@lemmy.world 23 points 3 weeks ago* (last edited 3 weeks ago)

I will argue that the introduction of many sales taxes were a mistake...

But once they exist, removing them won't help consumers because the market will just raise prices to suck up the difference. It's a ratchet effect.

Edit: If we ever want to "reverse" a tax, then the solution is just to send people thier cash back after the fact. Like the Carbon rebate program (that 80% of Canadian households ended up getting more back in rebates then the paid in carbon taxes. Great program. Good politics to reverse, but terrible policy to reverse)

[-] CanadaPlus@futurology.today 3 points 3 weeks ago* (last edited 3 weeks ago)

Yup. Income taxes are just a better way to collect funding.

If you want to add externalities back into the price of something, or literally just fund a government service the buyer is about to use like roads, it's a different story.