Cain's 999 is Starting to Sound Like Canada's GST

Herman Cain’s 999 tax idea is starting to sound like the GST (Goods and Services Tax) that was added by the federal government added here back in 1991. The GST replaced a hidden 13.5% Manufacturers' Sales Tax (MST); Mulroney claimed the GST was implemented because the MST was hindering the manufacturing sector's ability to export competitively. The introduction of the GST was very controversial. The GST rate is 5%, effective January 1, 2008.
At the time I worked for a large retailer here and the public was told that the prices the consumer would see will look weird as the Manufacture’s tax was removed. So, where I worked a $99.99 product became $86.49 plus now 8%PST (Provincial Sales Tax) and 7% GST, still cheaper. Cheaper for a while, gradually in the following months that product price crept its way back up to $99.99 and still plus the additional 7%GST.

Then, in 1997 some provinces and now here in Ontario, they combined the taxes to the new HST (Harmonized Sales Tax). The problem there is that many items that may have been exempt from one or the other of those taxes were now being charged both! An example would be my hydro bill that jumped 8% as the before exempt PST was now applied in the combined HST.

While I am not claiming that there is a direct similarity between the 999 tax and the GST and now its ugly cousin the HST, you may want to consider what happened here and how it was and is still hated. Also, back in 1993 the Liberals promised if elected that they would scrap the GST but, when they won, they soon realized they couldn't scrap the tax, it was yet again another promise not fulfilled.

Again, I don’t know enough about Mr. Cain’s 999 tax plan and I am sure there are many attractive aspects to it but, you may want to approach it with your eyes wide open before your economy gets saddled with the STD of taxes like we did here.

I’m only saying...