Wednesday, February 22, 2012
Canadian Shoppers Boost U.S. sales tax revenues
With the Canadian dollar being over or near par with the U.S. dollar many Canadians living close to the border are taking advantage of prices that are often lower in the U.S. In Erie County New York State Canadian shoppers are credited with helping to boost tax revenue over 400 million a record amount.
The county includes the City of Buffalo NY. just across the Ontario border. Sales taxes collected increased by 4.5 per cent for last year. The jump is to a considerable degree due to stronger retail sales generated by an increasing number of Canadian shoppers.
As a result of the sales tax revenue increases the county actually expects a 26 million dollar budgetary surplus. In a period of increasing budget deficits in many areas in the U.S. this is welcome news.
Canadian shoppers have complained that Canadian prices are often very much higher than in the U.S. even for identical items and when the two currencies are more or less at par. For more see this article.