On the weekend, the family and I headed down to Weken toys, a new toy warehouse that opened in Oshweken, on the 6 Nations Reserve.
It was grand opening weekend, and as with all big events, the computerized POS system crashed, and all items had to be tallied by hand.
That contributed to long line-ups at the cash register. But that isn't the reason some people stood in line for over 2 hours to pay for their purchases (I was only in line for 20 minutes). Because the store is on native territory, you don't have to pay any sales tax. So you save 13% tax on any toy purchase.
Well. You'd swear it was a 50% off sale. People went crazy. Their shopping carts were over flowing with toys. They were hand totaling total purchases of over $200, $300. So yeah, people were saving $26 - $39 in sales tax. But most of the items were regular price, the same prices that could be found at Wal-Mart, Toys 'R Us, etc.
So here's what I found illogical. Because there was no tax, people were buying way more toys than they would if they went shopping at a regular retail outlet. At Wal-Mart in Brantford (where we made a quick stop on the way home), no one was buying $300 worth of toys at regular price. But because there was no tax, people were making purchases way in excess of normal shopping habits. To me $300 is $300, whether tax is included or not. If I can't afford a $300 worth of items with tax, I can't afford $300 of items tax free, the money still has to come out of my wallet!
Well, there were hundreds of people that disagreed with me. A sale is an excuse to spend like there's no tomorrow.
(and on to the point of the post)
Which is why this announcement by Stephen Harper is freaking genius. The government will help you save $750 on a $316,000 new home.
Convince people they're getting a deal, and they'll worship the ground you walk on.