BrianLo
Well-Known Member
it seems to me that the majority of that higher price were due to the Imperial Gallon being larger then the American gallon. Five quarts instead of four. When divided by quarts (or as close as we can due to liters vs. quarts) it seems that it came pretty close. Has that changed?
Wasn't part of the reason that you "paid" more for cars and most other things was due to the fact that for the longest time the US Dollar was worth more then the Canadian Dollar. So something that costs $100.00 in the states cost $110.00 in Canada. That and the rest of the higher prices could also have been attributed to a higher rate of inflation. What I am unaware of is what is happening now. I think that the money is at par, which should bring the amounts paid more in line, but a lot of it is the result of the profit margin vs. tax rate charged by the governments which also adds to the cost. From my recollection Canada has never been shy about imposing tax upon tax upon tax.
Gas is pumped by the liter in Canada (not Imperial gallon). A quick calculation on my part would say our gas has hung around the 4.75-5.25 Canadian dollar per gallon over the last several years. Of course that is a moving target but our dollar has been pretty steadily around par (with 5-10% variation above or below for several years now).
Yes it's true that the value of the dollar has swung in our favour but the cost of pretty much everything has lagged behind and that's why there is a lot of cross border shopping (especially when our dollar was worth almost 15% more than USD during the height of the financial crisis). It's not the taxable total that is the problem, it is the list prices. Books are probably one of the worst offenders for people as they always have a Canadian and US list price and the US list price is often 30% cheaper prior to taxes.
However I do remember that US gas (even when our dollar was worth far less) was even cheaper for us back in the day. I think US gas has really caught up in price to the rest of the world over the last five years and that's why it is so shocking.
Still we pay a premium, a lot of it may have to do with economies of scale or what have you. I really am not an economist though...