THE CANADIAN FEDERAL SALES TAX: WHAT NEXT?

Among industrialized countries, Canada is the last nation still using a manufacturers’ sales tax, although at least nine other countries have used tax intermittently since 1923. When it was introduced 61 years ago it was considered a controversial tax. Many of the complaints at that time have resurfaced in recent government papers, including the comprehensive Report of the Federal Sales Tax Review Committee (1983), chaired by Dr. Wolfe Goodman. With the hope of encouraging the research, in the balance of this paper I present some basic information on the role and burden of the Federal Sales Tax and discuss some proposals for reform.