The problem is that consumption taxes are the best way for the government to garner revenue from everybody. Do you know how much revenue Canada gets from consumption taxes from the millions of visitors that come to Canada each year? That's revenue we don't need to get from the tax payer. Think about it. Millions of people visit each year and buy things like pop, chips, ride tickets, show tickets, meals, gas, hotel stays, etc. The list is endless. Sure they can apply to get at least some of that tax back but the bulk of the small purchases that we get that revenue do provide a fair amount of revenue from the government. It might be smaller but I'll also point out that its a way of taxing those people that are lying about their income or work without filing tax returns.
Sure you do save money especially if you make a big ticket purchase but in the long run income tax cuts benefit you better. A GST cut is only redeemable if you spend money while an income tax cut saves you money regardless. Would you rather have 1% saving on whatever money you spend on GST applicable goods or save 1% tax owing on your yearly income?
