Do you think that it is fair - sales tax every time?

@dartman2 (124)
Canada
May 14, 2008 9:57am CST
Here in Canada, when one buys a new vehicle, one pays a sales tax of 8% plus a goods and services tax of 5% for a total of 13% of the price of the vehicle. If one decides to sell this vehicle at any time thereafter, the buyer must pay sales tax on the amount of the transaction. Each time this vehicle is sold to the next owner, sales tax is paid to the government. Does this happen in your location? Do you think that each sale (which is really recycling/re-using) should be taxed? For example, for a $20,000 car, the sales tax would be $1,600. If this car were sold three years later for $14,000, the sales tax would be $1,132. Later, say three years later, this car is sold again for $10,000, with another $800 in tax. This is only three sales, and already the tax is totalling $3532 or almost 18% of the original value of the item. How does this support re-use/recycling?
1 person likes this
3 responses
@mommy_uv3 (109)
• United States
14 May 08
yes here in Mass we have the same thing, but not only do we have to pay tax on the car, we have to pay $30 every year to have an inspection sticker (to determin if it is good enough to drive on cirty streets) and then we have what they like to call an "excise tax" which means we have to pay so much per year depending on the value of your car, just to be able to drive the car on the roads, and if you do not pay the excise tax, when it comes time to renew your license, forget about it unless you can pay it all right then and there!
@dartman2 (124)
• Canada
14 May 08
Your comments make me feel a little better with our system although I don't understand the logic (apart from being a great income producer for the government) of taxing the same item many times during it's useful lifetime.
• United States
14 May 08
Doesn't that tax pay for Canadas country-wide 'free' health care? What's not fair is that we americans pay sales tax on used cars and don't get jackcrap.
1 person likes this
@dartman2 (124)
• Canada
14 May 08
Perhaps you can take consolation in the fact that Canada's country-wide health care is not entirely "free" as you say, although I do believe it has hope.
@cream97 (29087)
• United States
14 May 08
Too much of sales tax can be very depressing. I guess we all have to pay, like it or not. It is not fair....