It literally doesn’t. The price is the same either way. Reduced demand from the higher tax makes it so producers will lower prices. This is really basic microeconomics.
From Wikipedia: “tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply”
Do you happen to have a link to any of the rebuttals? I watch him a lot so I’m curious.
Okay, so first of all, they currently have the power to raise and lower interest rates without the people’s approval. This isn’t some undemocratic seizure of power.
Secondly, I don’t think they should have carte blanche to raise and lower every tax. It could be within some range of the federally set tax rate, e.g 2.5 points above or below.
It’s merely an idea, as people often complain about the BoC only having “one lever”.
Because people don’t want higher taxes. Raising taxes is always politically unpopular even if for a valid reason. Politicians often do the opposite, e.g Trudeaus grocery rebate just puts more money into circulation and contributes to inflation. The BoC can operate autonomously from the federal government and could conceivably raise taxes when a politician would not have the political capital to do so.
I agree that it’s unfortunate the central bank can only change interest rates. At the same time, fiscal policy often runs in the opposite direction. I wouldn’t be opposed to giving BoC some control over taxation, within a limited margin. It would give them one more tool so to speak.
Sadly it doesn't matter if we have antitrust laws or not when no one is willing to enforce them.
I just don't see the point? I had to learn cursive in elementary and haven't used it at all since then. There has to be more valuable things these kids could be learning.
Pretty much any big sub is totally unusable. The only reason to be on Reddit is for the niche hobby subs
Do you actually think that 100% a tax burden will always fall on consumers?