11/10/2007 08:18:00 PM
Stephen Harper Increase Decrease cut GST Consumption tax virtuous cycle Conservative Party Stephane Dion Liberal NDP Jack Layton
Consumption taxes are regressive. They harm the poorest consumers the most. Let's say a family needs to purchase a new refrigerator for their home. I took a quick look at The Brick's website and found a pretty average looking refrigerator for $1449.97. You support raising the GST, and I assume you would support at least returning to the 7% rate that existed under the previous Liberal government. Unless my math is way off, which it may be, 7% of $1449.97 is $101.50.This is a flat tax. It doesn't matter if the family in question pulls in $25,000 a year or $250,000 a year: they will still pay that $101.50 on the new household appliance. Is that fair?I agree Harper is playing politics with the GST. But the GST is a regressive tax. In an ideal world, the GST would be eliminated altogether and the lost revenues would be made up by increasing the taxes on the highest income bracket and also adding new income brackets on the higher end of things. Furthermore, it's about time corporations in this nation started paying their fair share of taxes again. Corporate taxes have been skydiving for almost 30 years. Other new progressive taxes that should be implemented are an estate tax and a wealth tax, as well higher capital gains taxation.These are the kind of taxation policies Dion should be proposing to present a clear Liberal vision that contrasts with Conservatives. Currently, the two parties seem to be in a race for who can lower taxes the most. As a true Pierre Trudeau/Walter Gordon Liberal this is really disappointing.
"This is a flat tax. It doesn't matter if the family in question pulls in $25,000 a year or $250,000 a year: they will still pay that $101.50 on the new household appliance. Is that fair?"-Yes it is fair, the GST was not eliminated it still exists, so you are saying it still is unfair no matter what. If a refrigerator costs 1500 and GST increases it to 2000 dollars, and people can't afford it, the problem really isn't the GST, because I doubt those people could afford it at 1500 or for that matter 1000. The problem is a family only making 25,000. You can say the GST is a bad tax because it affects the poor the worst, or you could concentrate on helping the poor get better paying jobs or other forms of relief. The GST is not the direct problem, it's problem is an indirect consequence of the poor's situation. (Note: I am a student, on my own, who makes less then 20,000 a year, and is going further into debt).Also your argument already includes lower income taxes for the poor, for if they were taxed the same as all Canadians, reduced income taxes would have an exponentially increased return for the poor then a cut in the GST would have. I am all for helping and not taxing the heck out of poor people, but you want further tax cuts for the poor (ie cutting the GST) while increasing the taxes for the wealthy and corporations (of which Canada has a higher tax rate then the United States).
The sad but funny thing is with our current tax system is that I just got a raise after far to long of busting my butt off, and it moved me into the next tax bracket, so intead of being at the top on the previous one making the most of I could before paying more tax, I now make less money then I did before because I'm in the new bracket, thank you Canada Revenue.
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