Canada has a national sales tax though, so there’s a disadvantage over the US...until Obama adds one.
The Canadian Goods and Services Tax (GST) (French: Taxe sur les produits et services, TPS) is a multi-level value-added tax introduced in Canada on January 1, 1991, by Prime Minister Brian Mulroney and finance minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers’ Sales Tax (MST); Mulroney claimed the GST was implemented because the MST hurt the manufacturing sector’s ability to export. The introduction of the GST was very controversial. As of January 1, 2008, the GST currently stands at 5%.
Directly copied from Wiki.