CANADA: Sorely Taxing The Consumer

CANADA: Sorely Taxing The Consumer

Why do salted peanuts cost more than unsalted ones? Because the former is deemed a taxable snack, while the latter is a grocery -- and thus exempt from Canada's new 7% goods-and-services tax. A six-pack of yogurt and a dozen oranges are tax-free at the corner grocery, but one of each gets hit when bought in a cafeteria line. Self-employed workers earning less than $30,000 a year don't have to collect and pay the tax at all, so a wash-and-set at the hairdresser could cost $10.70 in one chair and only $10 in the next.

This tide of confusion confirms some...

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