07-16-2017, 04:58 PM
(07-16-2017, 04:41 PM)sevenman Wrote:(07-12-2017, 08:36 PM)tomh009 Wrote: 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.
You're missing the point, which was that sales taxes aren't a road fee, they're a general tax.
Yes, taxes fund all those things, that's the point, roads are largely built and maintained with tax dollars, not with road use fees.