Coordinating Federal and Provincial Sales Taxes: Lessons from the Canadian Experience
AbstractCanada has operated both a federal value-added tax (the GST) and two variants of provincial VATs for the last 15 years. In addition, several provinces have continued to operate retail sales taxes similar to those in most US states. A brief review of experience around the world with 'two-level' sales tax indicates that Canadian experience is the most relevant international experience for the US to consider. We conclude that the Canadian case suggests that the introduction of a federal VAT in the US would not create any great technical problems for eithere the states or business.
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Bibliographic InfoPaper provided by International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto in its series International Tax Program Papers with number 0607.
Length: 27 Pages
Date of creation: Nov 2006
Date of revision:
sales tax; value-added tax; intergovernmental coordination;
Other versions of this item:
- Bird, Richard M. & Mintz, Jack M. & Wilson, Thomas A., 2006. "Coordinating Federal and Provincial Sales Taxes: Lessons from the Canadian Experience," National Tax Journal, National Tax Association, vol. 59(4), pages 889-903, December.
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ACC-2007-01-13 (Accounting & Auditing)
- NEP-ALL-2007-01-13 (All new papers)
- NEP-PBE-2007-01-13 (Public Economics)
- NEP-PUB-2007-01-13 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chun-Yan Kuo & Thomas Mcgirr & Satya Poddar, 1988. "Measuring the Non-Neutralities of Sales and Excise Taxes in Canada," Development Discussion Papers, JDI Executive Programs 1988-08, JDI Executive Programs.
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- Peter Dungan & Jack Mintz & Finn Poschmann & Thomas Wilson, 2008. "Growth Oriented Sales Tax Reform for Ontario: Replacing the Retail Sales Tax with a 7.5 Percent Value-Added Tax," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 273, September.
- Michael Smart & Richard M. Bird, 2009. "The Economic Incidence of Replacing a Retail Sales Tax with a Value-Added Tax: Evidence from Canadian Experience," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 85-97, March.
- Rosanne Altshuler & Barry Bosworth, 2011. "Fiscal Consolidation in America: The Policy Options," Departmental Working Papers, Rutgers University, Department of Economics 201120, Rutgers University, Department of Economics.
- Rajesh Chadha, 2010. "Moving to Goods and Services Tax in India: Impact on Indiaâ€™s Growth and International Trade," Working Papers id:2764, eSocialSciences.
- Richard M. Bird, 2012. "The GST/HST: Creating an Integrated Sales Tax in a Federal Country," International Center for Public Policy Working Paper Series, at AYSPS, GSU, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University paper1221, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Michael Smart, 2007. "Lessons in Harmony: What Experience in the Atlantic Provinces Shows About the Benefits of a Harmonized Sales Tax," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 253, July.
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