07-16-2017, 04:41 PM
(07-12-2017, 08:36 PM)tomh009 Wrote:(07-12-2017, 06:44 PM)p2ee Wrote: 2) Every time a car is sold and then re-sold, there is the HST that has to be paid. A cheaper new car with $20,000 value generates $2600 in taxes, not to mention the taxes generated on the re-sales. That tax revenue is not being considered and is probably at least $500 a year on average.
As Dan points out, this is a sales tax so not really relevant. In addition, you pay it only on the incremental value of the purchase ($20K new car with a $10K trade-in generates only $1300 in sales tax).
Actually, the sales tax is relevant because the funds go into government coffers and are used for what ever the government feels is necessary. Whether it be for hospitals, education, public transportation, affordable housing or roads.
Don't forget also, that the car that gets traded in for $10,000 to a dealership is likely to be sold again. Let's say for $12,000 - $15,000. HST will be again collected on that amount ( $1,560.00 to $1,950.00 in this example ) and every other time that same car is bought and sold. If that car changes ownership 3 or 4 times during its lifespan that's 3 or 4 times that sales tax is collected.