Path: utzoo!utgpu!watmath!watcgl!kim
From: kim@watsup.waterloo.edu (T. Kim Nguyen)
Newsgroups: can.general
Subject: Re: That F'n Fed. Sales Tax is Gonna *HURT*!!
Message-ID: 
Date: 14 Aug 89 19:56:57 GMT
References: 
	<1989Aug13.161201.7535@tmsoft.uucp>
Sender: daemon@watcgl.waterloo.edu
Followup-To: can.general
Distribution: can
Organization: PAMI Group, U. of Waterloo, Ontario
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In-reply-to: mason@tmsoft.uucp's message of 13 Aug 89 16:12:01 GMT

In article <1989Aug13.161201.7535@tmsoft.uucp> mason@tmsoft.uucp (Dave Mason) writes:

   In article  kim@watsup.waterloo.edu (T. Kim Nguyen) writes:
   >textbooks!?!), ... what else!??  I can't believe the gall of the govt,
   >to tax someone 9% on a 6-figure price for a house!

   Most of that house is currently covered by an 11% FST.  It's really
   only the final assembly (Gee, sounds like Free Trade :-) that is newly
   taxed.  While this is not insignificant, it is not really much of a
   bump on an already overinflated house price.  Moreover, it will not
   apply to resale homes, and there will be a rebate to make it ``revenue
   neutral'' for reasonably priced homes.  It's really only in the
   Toronto market (and possibly a few other overheated city markets)
   where it will make a noticeable difference.  It will also make
   building your own home more attractive.

Is the FST applicable ONLY to new houses???  I was under the
impression that ALL house sales were subject to the new tax.

Another point I'd like to make concerning the FST:  it will add up to
a lot more than 9%, since the tax is applied at ALL levels -- so if
you buy a new house, the builder pays FST on the materials, FST on
various other services he purchases, and *THEN* you pay another round
of FST on the total price.  This (I believe) will apply to all goods
which go through distributors, wholesalers, retailers, etc.
--
Kim Nguyen 					kim@watsup.waterloo.edu
Systems Design Engineering  --  University of Waterloo, Ontario, Canada