On the Incidence of Canada's Provincial Sales Taxation

Author:

Ruggeri G.C.1

Affiliation:

1. Lakehead University

Abstract

This study derives alternative measurements of the incidence of provincial sales taxation in Canada. It develops an index of progressivity (regressivity) based on the relationship between relative tax shares and relative mcome shares and presents estimates of the structural regressivity (progressivity) of sales taxation based on both a pregovernment and a postgovernment concept of income. The findings do not lend support to the view that provincial sales taxation is a major contributing factor to the overall regressivity of the tax system in Canada. They indicate that, when incidence is measured on the basis of a detailed calculation of taxable expenditures and a concept of income that accounts for the overall impact of government taxing and spending, pro vincial sales taxes are practically proportional.

Publisher

SAGE Publications

Subject

General Medicine

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