GST

[Red Leader]

So in Canada, in case you are unaware, there is an upcoming federal election. One of the campaign promises that the Conservative party has made is to lower the GST (the federal tax on such services as health care and the like) from 7% to 5%. This is a pretty big deal, as most canadians feel ripped off by the current tax. On top of that, some small income employees complain that the tax is too unfair because the higher the percent, the larger the chunk taken directly out of thier income. (7% of $14 000 is bigger deal than 7% of $1 000 000)
However, this tax provides a lot of the services that canadians take for granted, and by lowerring it, citizens will only end up paying for it somhow or another.

The question up for debate is: Should the federal tax be lowered?

[CrazyModerate]

No. Income taxes should be reduced for low-middle income individuals and families.

[AnnieAngel]

GST=goods and service tax

It's on pretty much everything. I'm paying 15% tax on most purchases other than food.

Now if I were in charge of the Liberals, I'd be promising to lower the GST to 4%, not 5% like the Conservatives are pledging. That would be so funny. :)

[LSD]

All sales taxes are inherently regressive, so there is absolutely nothing wrong with lowering it.

It's a completely political move, however, because the actual amount of savings from a 2% drop is marginal.

What I think is far more interesting than the actual proposal, is the general condemnation from "mainstream" economists, who all resoundingly demand an across-the-board income tax drop.

For those not keeping up, such an income tax drop will primarily help the rich. Income tax in Canda is a progressive tax, it "hurts" the rich more than the poor and, as your friendly macroeconomics teacher will tell you, this is "bad for the economy".

All this "stimulating the economy" garbage, of course, is code for "give the rich more money". It's just more carte-before-the-horse nonsense from the people who brought you supply-side economcs and "trickle down" theory.

Any half-decent economist who cared about actually helping people knows that cutting income-taxes won't do it. But I suppose they also realize who it will help -- the people signing their cheques!

[Ymir]

Originally posted by LSD
All sales taxes are inherently regressive, so there is absolutely nothing wrong with lowering it.

It's a completely political move, however, because the actual amount of savings from a 2% drop is marginal.

What I think is far more interesting than the actual proposal, is the general condemnation from "mainstream" economists, who all resoundingly demand an across-the-board income tax drop.

For those not keeping up, such an income tax drop will primarily help the rich. Income tax in Canda is a progressive tax, it "hurts" the rich more than the poor and, as your friendly macroeconomics teacher will tell you, this is "bad for the economy".

All this "stimulating the economy" garbage, of course, is code for "give the rich more money". It's just more cart before the horse nonsense from the people who brought you supply-side economcs and "trickle down" theory.

Any half-decent economist who cared about actually helping people knows that cutting income-taxes won't do it. But I suppose they also realize who it will help -- the people signing their cheques!

Completely true. Lowering the sales tax means healthy food and other necessities will become alot cheaper.

[poster_child]

2% of a GST isnt worth voting conservative. People are so stupid to fall for that.

I I think GST and PST should be taken off things like books, food, medical suplies, etc. Save the GST and PST for people who are buying big screen TV's and other useless junk like that.

[Eoin Dubh]

The G.S.T. (Goddamn Stupid Tax) was implemented on Jan. 1 1991 by the Conservative party. The Liberals said in 1993 that they would abolish it.
12 years later we are still waiting.

[Forward Union]

Originally posted by Red [email protected] 6 2005, 01:33 AM
The question up for debate is: Should the federal tax be lowered?
Tax?
It should be abolished, at least in the form it's in now. So should money, government, etc.

[Bannockburn]

What LSD said was completely true, and I don't disagree whatsoever. We know the lowering of the GST is a political move. However, If Harper was smart, he wouldn't lower it, but create it as a socialist tax where the money would go into Health care, education, etc, everything which Canadians are *****ing about. Actually spending it, on services, rather than hording it like the liberals seems to be much wiser. Of course, I am under the assumption that if, and only if the Conservatives get into power, they will lower it. (I don't think they will) and, if they do get into power it will be a minority government, and I doubt the liberals will let it pass.

[poster_child]

The G.S.T. (Goddamn Stupid Tax) was implemented on Jan. 1 1991 by the Conservative party. The Liberals said in 1993 that they would abolish it.
12 years later we are still waiting.

The cons brought it in 15 years ago, and now everyone is praising them for wanting to lower it by 1%. People are stupid

[Spark]

Taxes are always a big issue because its one of the things that affects people the most. Less taxes does indeed put more money in their wallet. It can also cause the money to flow out of it a lot faster too as the government cuts back and reduces its services to compensate and people have to pay for more expensive private providers. This always helps the rich and hurts the poor.

Lowering taxes has always been and will always be just a ploy by politicians to garner more electoral support. The conservatives certainly aren't going to get into a position where they could actually lower taxes, but will probably propose legislation for it anyway.

[OkaCrisis]

As well as all that has been mentioned, the GST reduction is inequitable from it's very premise: "The more you spend, the more you'll save."

The first night that Harper introduced this idea, I was watching CBC and they had an excellent example: that if someone was to buy a $40,000 Cadilliac, they would save $800 from the 2% tax reduction off of their purchase. A fair sum.
However, for low and middle-income families who do not make such large scale purchases, and mostly buy household necessities, the estimate of the annual savings for a family of 4 as a result of the 2% reduction in sales tax would only amount to $400.

Lowering the sales tax is only desirable when you're constantly making huge big-ticket purchases. The average Joe has little to reap from the supposed savings.

[Morpheus]

Tax cadillacs, not food.

Or better: what Additives Free said.