I already answered this once, but here is more info:
I think you are referring to the Employer Health Tax. This is a surchage
to employers for health taxes. See
I think if you have a look at the rates and the cost per person of
health care, you will discover it doesn't even get close to paying for
it. It is just another tax grab whilst claiming to have the tax rate set
(or even reduced); not that I mind paying taxes for services received, I
just hate it when they are dishonest about the whole thing.
Anyway, you have been misinformed; I encourage you to explore the issue
yourself to verify that. Even write them an email.
Perhaps I can explain it a bit better to you. Some provinces charge health
care premiums, some don't. The amount that some provinces charge is minimal,
for instance, British Columbia charges $50 per month per person. This is
only a token amount, a mere pittance in the overall operating costs. The
majority of the funding for the health care system is shared between the
provincial and federal governments (i.e. the Canadian public).
Sometimes the employer picks up the $50 per month premium as part of the
employee benefit package but that can hardly be considered as you suggest,
health care being paid for by the employer.
As you say most provinces charge a health tax on employers however, in
the overall scheme of things if you add the cost of extended health
benefits paid by employers the private sector in Canada is paying for an
about 30% of health care although our Federal and Provincial Governments
do not like to acknowledge that.
I never said that. What I said is that some provinces charge a small premium
for health care. Sometimes it's paid for by the employers, sometimes it
We were talking about subsidized health care, which is largely funded by the
taxpayer and is free to every Canadian , regardless of their employment
status (with the exception of some provinces that charge a small monthly
Private health care is another issue. It's optional and the degree of
coverage can vary from 0 to 100% depending on the employee benefit package.
This is an excellent question.
Having worked several years in retail in Canada, I know that many
items had US retail pricing below Canadian wholesale. Generally this
was due to a small distributor taking a huge margin in the middle,
with the retailer stuck with low margins to customers: 25% - 30%. The
barriers to entry to retail are relatively low, compared to
distribution, and so the fat tends to stay with the middleman.
Dewalt USA also appears to handle the distribution to Canada. I am
inclined to believe that Dewalt has decided to make more money in
Canada, per unit, as opposed to simply higher retail margins
Dewalt USA is also the Canadian supplier and distributor and they set the
wholesale pricing to retailers. The margins at retail level for Dewalt are
similar to any other brand name product, perhaps averaging in the 15-25%
On 28 Oct 2004 18:01:14 -0700, email@example.com (JohnD) wrote:
Exactly. And when I suggested to Robin a bit of free shipping might help correct
this unfair imbalance he basically said he needs the extra cash from Canadians
to subsidize the lower price he gives to Americans.
And this guy claims to be a Canadian!
There's a whole pile of conditions that have an effect on why something
maybe more expensive in Canada and there's a number of areas where the
reverse might be true.
Have you ever compared the cost of flying anywhere in Canada to flying in
the US? I can fly five times the distance in the US for what it costs to fly
anywhere in Canada. How do you explain something like that? Centering out
Lee Valley Tools for being caught in the middle of exchange rate conditions
and country conditions is at best, a waste of time.
Flights are cheaper in the US because there is more competition for
passengers. This is precisely why the plane is cheaper there, as
well. More competition leads lo lower profit-maximizing pricing. If
you can identifying the cost advantage to a Canadian-made plane
selling in the US I would love to hear it... I was merely trying to
explain the observed phenomenon of the pricing spreads, not pass moral
judgement on Lee Valley.
The reason Bosch sells for more in Canada is that the distributor,
Amiel, is taking a very high markup - significantly higher than that
taken by the retailer. I predict Bosch will pull the plug on them in
the next while.
If you consider the discussion a waste of time, that is your business,
but it is puzzling that you would then choose to participate in said
wrote in message
Well now ... Delta Airlines and their commuter subsidiaries have been flying
CRJs (40 pax model) for several years now. The CRJ ... (Canadair Regional
Jet) is a short-haul jet replacing a number of turboprop planes. The thrust
to weight ratio is very close to 1:1 ... getting you off the ground and up
... QUICK. It's more cost effective than the older turboprops per pax seat
than the turboprops, yet can use the same runways, and beats the 15-25 pax
This was AFTER consideration of US short-haul jets ... the CRJs were cheaper
to purchase and fly.
Now I have a question ... does LV's Canadian prices include VAT/GST, or are
they applied separately?
The pricing of flights is determined by passenger yields, passenger volume,
and the competitive environment. There are low cost carriers flying between
major Canadian routes that offer very competitive rates, even compared to
similar travel in the US.
Don't know what this has to do with Lee Valley as most of their stuff is
shipped ground freight.
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