Taxes are a fact of life. It’s getting to where the list of products or services we use that we don’t pay tax on is getting shorter all the time. There’s no tax involved for example when selling a pre-owned residential house, most medical and dental services, many educational services, most goods and services provided by charities, to name a few. And there are things that are theoretically taxable but the tax rate is zero such as basic groceries and prescription drugs.
Some Canadian jurisdictions have harmonized their provincial sales tax with the federal goods and services tax. Not in Saskatchewan but we now pay 6% PST on top of the 5% GST for certain goods and services and the province eliminated the PST exemption on children’s clothing, restaurant meals and insurance premiums due on or after July 1st. This latter tax has provoked a backlash and a petition is going around for people stating car insurance, home insurance, health insurance, crop insurance, business insurance and more will now be more expensive. It also says there are already hidden provincial taxes on insurance premiums and applying the PST to total premiums means we will be paying tax on a tax. But we’ve let governments get away with stuff like this for years. For example, after figuring in all provincial and federal taxes on every litre of gas we buy, the GST is computed on the total, meaning we are paying tax on a tax, which should never happen. So why don’t we agitate until we don’t?