NationStates Jolt Archive

This came up in another thread, and I thought it could use a bit of discussion:). In Canada, the Goods and Services Tax (GST) is placed on items considered to be non-essential, or 'luxury'.

So what defines non-essential? Granted, you could substitute leaves or newspaper for toilet paper if you had to...but is toilet paper really a non-essential item?

What goods in your country do you consider to be essential, but are taxed as non-essentials?

We get taxed on every financial transaction we make using a bank. (There is one exception which is to have your salary deposited and you then withdraw it all as cash). Otherwise we pay a tax on every monetary unit that enters or leaves our accounts.

We get taxed on every financial transaction we make using a bank. (There is one exception which is to have your salary deposited and you then withdraw it all as cash). Otherwise we pay a tax on every monetary unit that enters or leaves our accounts.
Wow! Do you have user-fees charged by bank on these transactions too? Is the amount charged based on the amount entering or leaving the account? Is this to stop speculation? Like a Tobin tax?

Toilet Paper is definately essential, as are food and drinks. Clothing, for the most part, could be "essential".

I guess non-essentials are things like electronics, toys, jewelry, and the like.

Toilet Paper is definately essential, as are food and drinks. Clothing, for the most part, could be "essential".

I guess non-essentials are things like electronics, toys, jewelry, and the like.
Ah, but which foods would be 'essential'? As far as I know, no food escapes the GST, meaning it is all considered non-essential.

I'm not sure about medical visits...since we aren't billed directly for visits to the doctor, I don't know if those charges include GST...

Hmm... I'm guessing bread, water, vegetables, fruits, meats (not the fancy cuts, like Filet Mignon), and milk.

Wow! Do you have user-fees charged by bank on these transactions too? Is the amount charged based on the amount entering or leaving the account? Is this to stop speculation? Like a Tobin tax?

Yes we have to pay user fees to the bank and the tax to the government. Great huh. No, it is nothing to do with speculation or anything like that. It applies from the first real (our monetary unit) onwards. It is a flat percentage of all movements in your accounts. It is low, something like 0.038%, but it applies to everyone. It was just something that moved that had not been taxed before, so they taxed it. It was supposed to be a temporary measure to pay for health or something, but it has become permanent.

Tax here is fun. To obtain my ID I had to pay a tax, of course. To pay the tax I had to have a CPF, an identity in the tax scheme. To have this I had to have and ID. They like to make things difficult and circular. I ended up paying the tax as my wife.

In the U.S., groceries don't get taxed, but food served in a restaurant does. Clothes do get taxed (because clothes are to a large degree luxury items. Shoes may be necessary, but Reeboks are not. A jacket may be necessary, but Gucci is not). NYC counters this clothing issue with one month of tax-free clothes shopping a year, usually around back-to-school time. A lot of sales taxes are controlled at the state and local levels, so it's hard to talk about the nation as a whole.

Liquor gets a hefty sales tax, as do smokes (the "sin" tax"). Gas gets taxed hard. At least part of that's federal.

Property gets taxed, which is odd, cause shelter is pretty damned essential.

Hmm... I'm guessing bread, water, vegetables, fruits, meats (not the fancy cuts, like Filet Mignon), and milk.

I think it is impossible to say which foods are essential and should not be taxed, unless you work this on the basis of the price of the food. i.e. bread, rice, flour, milk, chicken, cabbage etc. are all tax free because they are cheap, whereas caviar, roquefort and lobster are not as they are expensive. The actual value threshold would have to be determined locally and maybe seasonally. This gets difficult to administer.

At least in my province we escape having a provincial sales tax on top of everything else.

Aren't all taxes originally 'temporary'? :D

At least in my province we escape having a provincial sales tax on top of everything else.

Aren't all taxes originally 'temporary'? :D

Yeah. They only last till you die.

I think it is impossible to say which foods are essential and should not be taxed, unless you work this on the basis of the price of the food. i.e. bread, rice, flour, milk, chicken, cabbage etc. are all tax free because they are cheap, whereas caviar, roquefort and lobster are not as they are expensive. The actual value threshold would have to be determined locally and maybe seasonally. This gets difficult to administer.

Yeah, it would get pretty difficult. But, how about these being tax-free...

Grains, Flour, Eggs, Milk, Meats (except for fancy cuts), Fruits, Vegetables, Water, Bread, Sugar, Salt, and Pepper.

Well, it sounds reasonable to me, anyway.

Essential items IMO:

Food:
Caviar, Champagne, Smoked Salmon, Oysters, Lobster, Most Seafood, Exotic Meat (Warthog, Kudu, Springbok, Ostrich etc.), Fresh herbs, Olive Oil, Sea Salt, Black Pepper.

Entertainment:
Satellite TV, High speed internet, Cellular telephone with PDA.

Cars:
German, Air-conditioning, Satelitte Tracking system, GPS Navigation, Sun-roof, Leather upholstery.

House and Home:
Pool, Sun terrace, Double lock-up garage, Patio furniture, Big screen plasma TV, Large chefs kitchen, En-suite bathroom

Just a few of my absolute essentials that I couldnt live without! :p

Your post reminded me that cooking oil's essential (in certain ways, very much so). Just tax the expensive stuff like Extra Virgin Olive Oil.

Essential items IMO:

Food:
Caviar, Champagne, Smoked Salmon, Oysters, Lobster, Most Seafood, Exotic Meat (Warthog, Kudu, Springbok, Ostrich etc.), Fresh herbs, Olive Oil, Sea Salt, Black Pepper.

Entertainment:
Satellite TV, High speed internet, Cellular telephone with PDA.

Cars:
German, Air-conditioning, Satelitte Tracking system, GPS Navigation, Sun-roof, Leather upholstery.

House and Home:
Pool, Sun terrace, Double lock-up garage, Patio furniture, Big screen plasma TV, Large chefs kitchen, En-suite bathroom

Just a few of my absolute essentials that I couldnt live without! :p
I see that you're living the high life :p

Yeah, it would get pretty difficult. But, how about these being tax-free...

Grains, Flour, Eggs, Milk, Meats (except for fancy cuts), Fruits, Vegetables, Water, Bread, Sugar, Salt, and Pepper.

Well, it sounds reasonable to me, anyway.

One slight change. Tax the hell out of sugar, and don't tax anything else that is food. Higher returns, and healthier people.

In the U.S., groceries don't get taxed, but food served in a restaurant does.


Food gets taxed in certain states. In the majestic state of Oklahoma they tax basically everything (and were still poor ass eff!). Including food at the grocery store. If they could they'd tax you every time you took a shit. When I lived in Washington and Oregon states there were far fewer taxes including no grocery food tax!

Yeah, I guess you don't really need sugar, salt, or pepper, for that matter.

Food gets taxed in certain states. In the majestic state of Oklahoma they tax basically everything (and were still poor ass eff!). Including food at the grocery store. If they could they'd tax you every time you took a shit. When I lived in Washington and Oregon states there were far fewer taxes including no grocery food tax!

See there: I thought the whole nation had the sense not to tax groceries, but I guess that varies from state to state. But no.