Suggested transaction tax system

James A. Treacy
Wed, 15 Nov 2000 16:44:44 -0500

On Wed, Nov 15, 2000 at 08:51:14PM +0000, Al B. Snell wrote:
> On 15 Nov 2000, Derek Atkins wrote:
> > What about places where you have multiple taxes (taxes on taxes,
> > e.g. the Canadian GST), hidden taxes (e.g. US Gasoline), or split
> > taxes (income tax split across multiple US States)?
> I'm not sure about the details of Canadian GST. Anyone care to enlighten
> me? I imagine it can just be modelled as one tax, though; if there's a
> function that converts the amount you pay to the amount you get charged in
> tax, then we can handle it.
GST = Goods and Services Tax
The rate is 7%, but how it is applied depends on the province. Most
apply it on the cost of the good (or service). Others, like Quebec,
apply it to the cost + provincial tax. Yes, there can be tax on a
tax, as remarkable as that sounds. So, in Ontario we pay 15% tax,
but in Quebec the rate is 15.56%.

James (Jay) Treacy