Friday, August 3, 2012

What the Canadian 13% federal sales tax buys.

Evony, my wife just spent two weeks in Canada. On every sale there is an automatic 13% sales tax. federal. What does this buy? One, it buys health insurance for everybody; small businesses, large businesses too, do not have this as a cost. This probably is one of the reason why Toyota opened 400 jobs in the area where we were last week! It is also why GM invesed $1.5 billion in expanded production in Oshawa, Ontario, to the north of Toronto while we were there. It also pays all of the bills for the government of Canada, which is not in debt. Ours has over $17 trillion in debt, and this is rising. I will gladly pay the 13% tax in exchange for healthcare for all and no inflation of the currency because the government prints fake money to pay its debts, which is the case here. This inflation by fake money causes prices to rise on food, gas, clothing, etc. The middle and lower classes pay for this fake money through higher prices. The small business in Canada is farther ahead than here. The USA should learn from its neighbor to the North; Wall Street is making too much money the way it is here now to ever do something fair, sensible. Travel comparison is learning.

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