Funny, I thought everyone hated the GST. They hated it when the Progressive Conservatives proposed it under Mulroney. They hated it when Chretien promised not to implement it. They hated it when Martin proved the Liberals liars and imposed it.
It was accepted, grudgingly -- but everyone hated it.
I'm amazed at how many people say reducing the GST by 2% is sound politics, but bad policy. I've read where people are disputing the $400/year savings Harper says would benefit the average family and suggesting that it's a negligible, so why care.
To me, $400 is definitely not a pittance, but I'm wondering if it wouldn't be higher that $400/ family.
For example:
Every raw material that goes into building a product is GST-able. If a builder buys $100 worth of wood, it costs $107. Won't he recover the 7% he's paid in GST (on each product and service used to build the house) by incorporating it into the price of the house?
Wouldn't this 2% reduction also decrease costs for hospitals and schools--- or are they already GST exempt?
Who could find fault with an idea that would give Ottawa less of our money?
canadianna
6 comments:
Perhaps an individual business gets
that GST back from the Gov't 100%
fully, but the point is that, the Gov't. charges busines or it's own products 7% for GST,That business in turn charges us, so really the Gov't gets 14% for GST revenues. Now, it's true the Gov't returns that money back to Manufacturing and business. But it doesn't have to pay that money until the next fiscal year, during which it stays in Gov't coiffures and of course gains interest. I'm sure the Interest is high. Gov't is rolling
in the dough. Allan.
So who actually pays GST -- just individuals? Then I'm even more for this reduction -- although, I think just plain eliminating it on certain consumer items like books would be a better idea.
I'll take a tax cut any way it comes.
And individuals can receive a GST rebate cheque if they are approved (ie, they make less than 30,000 a year... I think).
If the Conservatives reduced the GST, would my GST rebate be reduced as well to make up for it? Sounds like six of one-half a dozen of the other to me.
Having said that, I'm all for lowering taxes... of any kind!
Schools also get the GST they pay along their purchases back from Ottawa; I imagine that hospitals do as well.
For the record, I like the GST. I don't like paying it, though.
The problem, it seems to me is not with cutting the GST. The problem is that every dollar you cut from the GST you can't cut from other taxes.
And there are taxes that do a lot more harm to the economy than the GST.
So the headlines in the papers should be:
Liberals Love The Mulroney Tax.
Conservatives Got It Right With GST Then and now: Mulroney vindicated.
I'm sure there is more good news coming from the Harper Team and I can't wait to see how those with no integrity respond.
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