GST CUT - DO YOU BELIVE IT???

Quixote · Guru

RE: GST CUT - DO YOU BELIVE IT???

DR J · Guru

the GST tax won't benefit everyone, think of those families at the lower end of the economy, there are no sales taxes on rent, groceries(well, most of them) or public transit.... so at the end they'd probably be saving about 5 dollars a month or so...
as others have mentioned, an income tax cut would be most benefitial to all (employed) canadians

Jinx · TOP Guru

It's gonna happen but a 2% cut is hardly a cut and it's not gonna help the average Canadians only BIG Business...HARPER SUCKS!!!

miguel · TOP Guru

what i am saying is that income tax cuts and corporate tax cuts have a more positive effect on the overall canadian economy. Economists know this, and so does Harper (again, he IS one).. The GST tax cut is a nicer election promise because it "benefits everybody".

Explain to the average canadian why income tax and corporate tax cuts "benefit everybody more" and you have to get into economic mumbo jumbo (marginal efficiency cost) that goes over most people's heads.

Quixote · Guru

I don't see it as a gimmick. I see it as having a direct and immediate impact to Canadians.

Someone asked where the money is coming from. It's in the article - the money is coming from a surplus.

As for the TTC, that is more of a municipal or provincial concern, not federal.

miguel · TOP Guru

GST cuts are a popular gimmick, but bad economics. Harper knows this given that he's an economist. Every tax has a cost to the economy: sales taxes are the least damaging to the economy, corporate income taxes and personal income taxes are the most damaging to the economy.

Cutting personal and corporate income taxes makes more sense (since they are the ones that cause most shock).

But hey... when you're trying to get elected............

Bainaman · Foro Master

Daeveed wrote:

Personally i think he will do it, but I don't think that would have too much impact in our everyday lives. If I pay 1% less on my groceries, I'm not really going to care too much. I think that at a macroeconomic level though, this must represent fairly big impacts. For the government to be receiving 1% less revenue at a federal level, it would mean that from the approx CAD$9 billion in GST revenue (CRA 2005 Report, page 117), CAD$90 million will be cut. Those 90 million, could be easily used to renovate the public transportation system, or fix roads, or things of that sort. I am personally not very fond of this "tax break".

Well....

The TTC is in dire need of $$$......they announced a 15-20% increase in fares coming soon....

So yeah......Even though I don't take public transit.....I agree with Daeveed........instead of a "tax break".....this money should be going for public services in desparate need of funding.

Daeveed · Foro Master

Personally i think he will do it, but I don't think that would have too much impact in our everyday lives. If I pay 1% less on my groceries, I'm not really going to care too much.

I think that at a macroeconomic level though, this must represent fairly big impacts. For the government to be receiving 1% less revenue at a federal level, it would mean that from the approx CAD$9 billion in GST revenue (CRA 2005 Report, page 117), CAD$90 million will be cut.

Those 90 million, could be easily used to renovate the public transportation system, or fix roads, or things of that sort.

I am personally not very fond of this "tax break".

Marky Mark · Foro Master

I think that's the point, there was a surplus from the Liberal government that was spent on themselves. Hopefully the GST cuts will affect the import/export business which will then have a direct and immediate affect on what we pay at the consumer level... but then again it WAS the Conservative government that brought the goddam GST into existence in the first place.

So whatever the case... we will hurt one way or the other.

JOKER_ESCO · Foro Master

This is bull $hit, they will cut the GST but were they are going 2 get the money from?? so that means something else like health care will take a hit..

Quixote · Guru

This is a great plan. This is a change that will positively impact ALL people across Canada.

A friend made a good point that the Canadian government has spent millions in federal programs that only benefit a certain group of people - while no one else benefits from them. This GST cut will benefit everybody equally.

Jaime Cruz · Foro Master

If they cut the GST they will raise something else so we are still screwed.
With this new governmet it will be the same sh#t, different toilet.

Luna Chiquitita · Guru

its better to have a surplus, than to have a deficit. we'll see how this tax cut pans out but to be honest with u, i do not think its for the greater good of the blue collar folks that are working hard for their money... in the long run, this will somehow only benefit snobby rich folks that put these ppl in parliment...

i know that sounds cynical but i just dont trust the conservatives.. yes yes, blah blah blah, they can't do TOO MUCH damage 'cause its a minority government but damage can still be done nonetheless

we'll see what the future holds. bottom line tho: it sure as hell beats living in the States w/ Bush at the helm.

Julie · Comandante

I think we have to wait and see ! Because even if the cut is immediate, the results won't be seen before, mmmmmmmmmmmmmm................. years

Hopefully not though !

DulceGalletita · Foro Master

Don't think this cut will make such a big difference

LaDyBuG · Comandante

Bainaman wrote:

LaDyBuG wrote: Is this done immediately? Good news....I guess..... Will the tax cuts affect anything? You pay less.... DUH!!!! HAHAHAHA!!!!!

Sori ah!

But re-read my 2 questions pls....cuz you didnt answer any of them.

1. Is this done immediately?

2. Will this affect anything? (like construction, ttc upgrades..etc)

Bainaman · Foro Master

LaDyBuG wrote:

Is this done immediately?
Good news....I guess.....
Will the tax cuts affect anything?

You pay less....

DUH!!!!

HAHAHAHA!!!!!

LaDyBuG · Comandante

Is this done immediately?

Good news....I guess.....

Will the tax cuts affect anything?

Bainaman · Foro Master

OTTAWA, Feb 6 (Reuters) - The new Canadian government will cut taxes, starting with a cut to the 7 percent federal goods and services tax, Prime Minister Stephen Harper said on Monday shortly after his Conservatives were sworn into office.

"We will ... move quickly to cut taxes, starting with the GST," he told reporters. During the election campaign Harper promised to cut the GST immediately to 6 percent and eventually to 5 percent.

Bainaman · Foro Master

December 1, 2005

Conservative leader Stephen Harper today announced that a new Conservative government will cut the GST to five per cent.

“Mainstream Canadians – hardworking people who pay their taxes and play by the rules – need a new government that will put their interests ahead of self-interest,” Mr. Harper said. “We will start by reducing taxes for all.”

While the Liberals have been in power, the amount of GST taken from Canadians has doubled, from $15.9 billion to $31.8 billion. The increase exceeded inflation and outstripped growth in people’s earnings.

Meanwhile, the Liberals have spent money on themselves and their friends, and wasted billions of taxpayers’ dollars. The total federal surplus was $63 billion during the last eight years and is projected to total $55 billion over the next six.

A Conservative government will:

* Immediately cut the GST to six per cent.
* Reduced the tax further, to five per cent within five years.
* In New Brunswick, Newfoundland and Labrador, and Nova Scotia, the HST reduction will be the same: one per cent right away, and a further one per cent over five years.

The immediate saving to ordinary Canadians will be $4.5 billion. When the GST-cut is fully implemented the total benefit will be much greater.

The real choice is between tax relief for some Canadians and tax relief for all: tax relief you can see versus tax relief you never see. “This will be a tax cut that you will see every time you shop, tax relief that you experience, a tax break that no politician will be able to take away without you noticing,” said Mr. Harper.

Canadians deserve accountable government that gives back money that it does not need – not politicians who spend, waste and mismanage your money to benefit themselves and their friends.