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PORT PERRY STAR -- Tuesday, April 25, 1989 -- 11 | os by Ross Stevenson, M.P. Durham Most of you don't know it, but Cahada has a hefty federal sales It's a hidden, complicated and confusing tax which has been with a 5.7155 SY = | "on vy pe ds wy 'vm Terry McClurg, manager of the Port Perry Sears store, re- us since 1923. The federal govern- ment collects it from manufac- turers and importers, and it's buried in the price you pay. In many 'cases you pay sales tax -- which is added to the uh 4H a" Tay JINN sd fra pial iy # 4 cently made a donation to the hospital on behalf of Sears Canada Inc. The first cheque (presented to administrator Da- more over three years. UPSIDE-DOWN vid Brown) was $1,000--to be followed by a pledge for $2,000 WHS ADOND ATILLER. Bi g Fil Sm ] 4x ¢ rovincial . retail price at the time of pur- chase -- on top of the federal tax. So you're paying provincial sales tax on what you pay in federal sales tax! That's why the federal govern- ment believes its sales tax must be changed, and intends to do this within the next two years. The usual present federal sales tax rate is 12 percent, but it's variable. For example, different rates apply to construction materials, alcoholic beverages, and, telephone bills. Some goods aren't taxed at all. Businesses must know which goods are taxable and which are exempt, as well as what products qualify for which particular tax rate. To make matters worse, im- ported goods actually are taxed less than those produced in Canada. . Atthe same time, federal sales tax raises the price of our exports, making them less competitive on foreign markets. Finance Minister Michael Wilson has call- ed the federal sales tax a silent killer of jobs, and a harmful drain on the economy. Large corporations can avoid paying more than $1 billion per year in sales taxes simply by changing the way their products are marketed. This not only gives them an unfair advantage over smaller companies, it also moans higher taxes for everyone else. There is general agreement that the federal sales tax must be changed. The federal government is working now to find the best new arrangement. Hidden Federal sales tax with us since 1923 One idea currently being discussed with the provinces is for a single national sales tax to com- bine and replace the present sales taxes imposed by Ottawa and most of the provincial govern- ments. The rate would vary pro- vincially, as each province has a different rate of provincial sales tax. Ontario's sales tax was rais- ed to eight percent last yeat. If this one unified tax was im- plemented, a federal rate of, say, nine percent with the province's eight percent would mean an up- front and visible tax of 17 percent on purchases., The actual new sales tax rate and the list of pro- ducts on which it will be applied haven't yet been éstablished. However Mr. Wilson has stated basic groceries, 'prescription drugs, and certain medical devices will be exempt. Following a meeting with pro- vincial finance ministers earlier this month, he said a new national sales tax will be in place by January 1, 1991, with or without participation of the provinces. None of us enjoy paying taxes, and most are understandably suspicious of changes to the tax "system. But it should be remembered that this new sales tax is part of the overall tax reform package which the federal government undertook with the aim of spreading the tax load more fairly and equally, with cor- porations paying a bigger share of the total burden. The new national sales tax is not viewed by the government as a means of raising more money, but as- another major step towards making the tax system more equitable. When it is in- troduced, income taxes will be reduced and the refundable sales tax credit will increase. This should substantially help a great many lower and middle- income Canadians. on Fashion SPECIALIZING IN LADIES' AFFORDABLE FASHIONS Hours: Monday to Saturday 9:30 AM to 5:30 PM PORT PERRY PLAZA 285-0129" WR ---- -- A Sng em ett 25S | i: i ath x, ECR A 1 - LG pn ReN ny Ji our overwhelming resp WR age He TARE Due 10 Y hours on Friday and extended shopping Saturday evenings, have decided to give our more evening a week with | day to Wednesday -- 8 AM to 9 PM THURSDAY __ 8 AM to 10 PM "FRIDAY -- 8 AM to 10 PM SATURDAY -- 8 AM to 7 PM Our thanks to you for your continued patronage at IGA ' when the clutch lever is released. deep- digging power you need to tun The E501 also features handlebars your garden upside-down. that adjust tofit cach individual operator A 5 hp. Honda GX scrics, four-stroke comfortably. The C2 version also engine gives it the muscle to takcon a features 2 forward and reverse speed. heavy workload. Automatic compression If you need heavyweight help to release makesit casy ostait. Andalarge turn your garden upside-down. come in capacity muffler helps it ran quictly. and sce us. We'll set you up with an tor added safety. there's [HONDA | Power an casy-to-reach loakis A! we at IGA in Port Perry r customers one onger hours: The Honda 1-501 tiller has all the cut-off switch. and a safety clutch that stops the tines SAVE $49.00 t $132.00 UE |lindsa HWY. 36 at Queen St. Lindsay 324-5672 Four-stroke 7 hp engine powers 20-inch rear tines Two forward speeds plas : -- mmm Ga oc OR oS 5: 3 Wc 3 mmm mamas S------ og C2