Quote: Originally Posted by Gonzo
America doesn't want to take over Canada. Our biggest threat is not from the States. It's from our own government. We need to be careful as to what we allow our government to do, or who we elect. Canadians elected Mulroney twice, our worst PM ever! We have free trade because of him. The GST was to cover the money lost from duties we charged American companies at the border. So we pay taxes for American companies to sell to us. It's not Americas fault, it's ours because we elected Mulroney.
This is a perfect example of anti-American Leftist hogwash that has filtered into the Canadian psyche. This isn't Gonzo's fault per se because he/she is merely regurgitating the central Leftist theme of: Conservatives = American = bad = inaccurate facts
The GST did not replace duties on American goods. It replaced an excise tax on manufactured goods.
The purpose of the national sales tax was to replace the 13.5% Manufacturers' Sales Tax (MST) that the federal government imposed at the wholesale level on manufactured goods. Manufacturers were concerned that the tax hurt their international competitiveness. The GST also replaced the Federal Telecommunications Tax of 11%.
EDIT - though I will point out that Gonzo was gracious enough to point out its not America's fault.