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2005 GST Update - Stephen Harper's Campaign Promise

On December 1st, 2005, Stephen Harper,
Leader of the Conservative Party of Canada,
made a campaign promise to reduce the GST
from 7% to 5% over two years.
Yet, both his party and the Liberals have in
the past promised to abolish the GST - which
had originally been introduced as a "crisis tax".
Don't you wish just one of our two major
parties could step up to the plate on this issue?
After 14 years of radio silence form the Conservatives
on the GST issue, this sudden announcement during an
election campaign has a definite smell of fish to it, no?
First, what does "over two years" mean?
Is Stephen Harper suggesting that he'll lower it by a
percent per year? Maybe a half percent every six months?
Yeah, busines owners will love that... They love re-calibrating
their cash registers for the government's benefit.
So, really, IF the promise holds any weight at all,
(Which it clearly doesn't, because it's so half-baked)
We'll be seeing a 2% reduction in the tax IN two years,
not OVER them.
But, hey, let's do the math on this to see if
this latest Conservative bribe is really worth it...
Let's say that after you've paid your income tax and
your rent/mortgage, you spend $10,000/year on goods and
services. (Let's say...This estimate makes the math easier.)
On that $10,000 worth of goods, you pay an additional
$700.00 GST. Under Harper's plan, we would save $200/year.
That's pretty insignificant, especially when you consider that
consumer spending, and thus, the GST, has increased because
of inflation... and will again. When you count inflation,
the GST has grown in dollar cost to you since 1991.
According to the Bank of Canada's Inflation Calculator, *
in 1991, you spent $7712.06 to get today's $10,000 worth of
goods and services. And the GST on that amount was $539.85
So, with Harper's plan, we'd be paying in dollars about what we were
when the GST was introduced.
So, it's hardly a rebate at all.
And what do Canadians have to lose if we accept the bribe?
Well, the government was tossing around the idea that they
should have the right to access and read your email without your
consent. They're using the generic "anti-terrorist measure" excuse.
to justify this blatant invasion of your privacy. Isn't email just like
posted mail, and deserving of the same privacy protection under the law?
So far, the government has found it hard to push this measure
through Parliament, 'cause they only have a minority. Which brings us to
a fundamental truth about democracy...
Minority governments are good for democracy.
The more opposing voices there are in power, the less stupid or
unjust laws the government can pass.
Majority govenments leave one party in power. That means that a small group
of buddies can ignore your wishes and pass all kinds of laws.
That's how the GST got in...
So, do yourself and other Canadians a favour... Keep the government
representative of our vast diaspora... Keep a minority government in power.
Make the politicians work for you for a change.
-- Johanne Savoie
* Bank of Canada's Inflation Calculator
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