Canada’s Federal Liberal Government Wants to Force Foreign Companies Pay Canadian Sales Taxes on all Digital Products and Services by July 2021 – December 1, 2020,
There is one political positive I see with Canada’s Liberal Party it’s the fact that they’re destroying the NDP, I personally think Minister of Finance Chrystia Freeland has the lowest financial IQ for a person of that position in Canadian history, but I think it’s best both the Canadian people, as well as the Federal Government of Canada, figure that out the hard way.
When you charge your own people a tax on something, they find a way to get around that tax, and most of the time people avoid paying a tax by consuming and/or WORKING less, which is commonly the problem they have Scandinavian countries and is the main reason why the United States has the worlds reserve currency.
In a lot of U.S States, their Governors don’t punish their citizens for consumption and income taxes, as in example Texas doesn’t punish it’s a residence with an income tax, instead, people pay only a sales tax, in Canada, we have a ridiculous marginal personal income tax rate and because Crown Corporations as an example are basically price controls on Canadian consumers, the Canadian cost of living is unprepared for a deflationary economy which can not be saved by central bank liquidity(near or below 0% interest rates).
So, Minister of Finance Chrystia Freeland wants to force foreign companies into forcing Canadians to pay GST/HST. Now I should point out that Shopify is a Canadian company, that already makes it easier for Canada Post to tariff foreign imported goods into Canada, but Shopify is only one company, what Minister of Finance Chrystia Freeland is unknowingly doing is requiring smaller online companies to potentially download an APP or hire a programmer to integrate the Canadian sales tax into their website.
This would, of course, be an additional cost to the website owner who may or may not benefit much from the Canadian consumer and our depreciated Canadian dollars. Furthermore, you have to also factor in the terminal fee, because Paypal as an example charges a fee to use their service.
So if let’s say Paypal is integrated into an online sellers website with the Canadian sales tax attached all of sudden a Canadian consumer might think twice about making their purchase or even worse, the seller might block Canadian buyers, because the terminal fees they’re being charged isn’t worth the sale, because after all they have to be competitive GLOBALLY and they have already priced their item to sell in U.S dollars and why should they lose a profit because of the small Canadian market?
This is of course is why a lot of things Canadians see in America, can’t be bought in Canada, I can only imagine if this tax by Minister of Finance Chrystia Freeland is forced onto Alibaba or Aliexpress, which is now basically integrated into Shopify and thus into Walmart.
Now obviously, in her mind, she doesn’t get it, I think Bill Morneau understood this, but again Chrystia Freeland probably doesn’t comprehend why this had to be a joint effort, because this will require uniformity and the Canadian government by itself trying to force foreign individuals and entities to adhere to the Canadian tax code is laughable, not to say it can’t happen, but I personally wouldn’t pay out of pocket expenses to appease the Canadian tax authorities if I were a foreign small or medium-sized business.
The article below is about the Canada-wide child care system but really it’s about government stupidity. I don’t even see how this would be supported by Liberal supporters, because a lot of liberals are cheapskates. Most people on the Left take more out of the system than they put in, however, Liberals love themselves some entertainment, Leftist will splurge on health, clothing, and entertainment and basically Finance Minister Chrystia Freeland is going to force them to pay more for it.
Again I think she’s clueless, I want to point out that I’m not targeting her IQ as a woman, I just don’t think she’s qualified for this position, As I’ve stated in other posts, there is another Justin Trudeau scandal brewing and I believe she will be his replacement if he steps down.
But in my opinion, she clearly has no idea what she’s doing, and even if this law passes it’s not going to benefit anyone because Canadians as an example prefer Netflix over the CBC, and if the Canadian government forces Netflix to finance Canada’s failed duplicate Hollywood scheme, Canadians simply won’t watch or simply won’t buy and more than likely purchase a VPN Network to try to get around Canadian laws.
It’s still cheaper to buy liquor in Socialist New York State with depreciated Canadian dollars than it is to buy liquor in Ontario’s Crown Corporation liquor monopoly. There are trade-offs with everything, there is no winning or losing when it comes to government tinkering with the free market, once the government regulates, it’s like your mom showing up when you’re playing with your school friends, behaviors change almost immediately, one would assume that Chrystia Freeland would know that, after all, she has three kids, but I guess power corrupts all absolutely and this is simply just another nail in the coffin for the Canadian economy
Ottawa signals plans to create Canada-wide child care system, collect digital sales taxes | cbc.ca
interesting times ahead!