Both the Toronto Star and National Post have recently published articles on Cross Border Shopping. The National Post article The Canadian Advantage by Adrian Humphreys is right on the mark. http://news.nationalpost.com/2012/02/26/the-canadian-advantage-border-crossers-give-buffalo-a-1-25b-boost/ Interesting enough is that a number of those interviewed said that they stocked up on food items like coffee, sugar etc.
So what do we do following these articles? Jack Mintz, one of Canada’s leading economists says the government is missing out on $8B on potential taxes. Mintz supports the recommendations of Prof. Michael Smart of the University of Toronto who says Canada is losing out on about $39-billion per year on the current GST system, Smart said, because it does not tax four key sectors: food and agricultural products, housing, certain public sector bodies such as education and health care, and small traders.
So where do you think they are going to go first for additional revenues? You got it – FOOD. Why? Path of least resistance – the poor average Canadian tax payer – YOU http://news.nationalpost.com/2012/02/24/canada-losing-8-billion-a-year-by-not-charging-gst-on-food-economist/
In a recent blog I did a one-on-one comparison shopping for food in the US and Canada – The results were surprising, not just on the essentials bread, eggs and milk but virtually everything. So now they want to add GST.
So here’s a little more to think about…