Harper to unveil new tax measure today

[jdobbin]

http://www.ctv.ca/servlet/ArticleNews/stor...me=election2008

The Conservatives will unveil a new tax measure today that will affect virtually every product but does not involve the GST, CTV News has learned.

The new measure is going to be broadly-based and will bring down the price of consumer goods, CTV's Ottawa Bureau Chief Robert Fife reported Tuesday.

Another stupid adjustment to consumer taxes. Why can't they just reduce tax on income?

Oh, and they are promising to reduce the 4 cent excise tax on diesel. That promise has a much credibility as their promise to end the excise tax on gas.

[Shakeyhands]

because people buy in to this as "cutting taxes".. Simple really, It's a feel good thing.

[M.Dancer]

WINNIPEG — Conservative Leader Stephen Harper is promising to cut federal excises taxes on diesel and aviation fuel in half over four years.

Mr. Harper is pledging to cut the tax by 2 cents -- taking it to two cents per litre from the current four cents.

http://www.theglobeandmail.com/servlet/sto...9/BNStory/Front

I have a feeling this is a promise like the cuts to the G.S.T. that they will keep and will resonate with Canadians.

It is an attempt to contrast the Tories with Liberal rival Stéphane Dion, whose proposed carbon tax would hike excise taxes on diesel and aviation fuel by 7 cents a litre.

I have also a feeling that this is also a promise that they the Liberals would keep this promise too....much to the pain of every Canadian.

Edited September 9, 2008 by M.Dancer

[blueblood]

http://www.ctv.ca/servlet/ArticleNews/stor...me=election2008

Another stupid adjustment to consumer taxes. Why can't they just reduce tax on income?

Oh, and they are promising to reduce the 4 cent excise tax on diesel. That promise has a much credibility as their promise to end the excise tax on gas.

This is politics pure and simple. Harper has created a wedge issue b/w the Liberals and Tories and it's up to Canadians to decide what they want. This looks like the main platforms squaring off with each other.

[Foxer]

http://www.theglobeandmail.com/servlet/sto...9/BNStory/Front

I have a feeling this is a promise like the cuts to the G.S.T. that they will keep and will resonate with Canadians.

I have also a feeling that this is also a promise that they the Liberals would keep this promise too....much to the pain of every Canadian.

I have to agree.

Our airline industries are in serious trouble. As well as our trucking industries which are seeing a record number of companies shut down.

This cut won't be much benefit to the average guy living in the north, he will see a relatively small savings. But to the companies who spend huge money on fuel it's significant, and for many who are on the razors edge it may be the difference between surviving and failing in our current economy.

Consider British Columbia for example. I know a trucker who works for a small company. Currently, they charge about 1800 bucks for a load of processed wood from the north to vancouver. Thats all the market can really afford to pay. Over 1000 dollars of that will be chewed up in fuel. Another 400 dollars goes to the driver (my friend) for his time - which is at least two days (10+ hours to get down, then drop off and 10+ hr return). Not exactly making him rich.

The remaining 300 - 400 dollars goes to the small company. Out of which they have to repair and maintain the truck, pay the lease on the truck, cover all their administration costs, pay for insurance, pay any fines (the DOT hands out fines for the smallest thing these days and it's almost impossible to avoid paying some no matter how careful you are), etc etc and still somehow turn a profit. The guy is just barely getting by and is considering shutting the company down.

And that's if all goes well and there's no problems with the load or delays etc.

The vast majority of the money goes to fuel. And one simple trip like that can consume 750 litres of gas easily.

Now - each of his two trucks makes two trips a week if business is good to van or edmonton.

So - that's about a 15 dollar savings per trip (doesn't sound like much), or about 60 bucks a week. Or about 240 bucks a month. 240 dollars when you're barely more than breaking even actually does help.

There is no such thing as a 'hybrid' b-train truck. There is nothing they can do to significantly lower the fuel it takes - this isn't like a car where you can just choose one with a smaller engine. It takes x amount of power to haul that weight, and that's just the way it is.

For airlines it's even bigger.

And then there's our ferry services who are the only lifeline between the island and the mainland, who are already having to charge more to cover fuel costs to the point where passengers are getting seriously restricted in how often they can travel.

The fact is in a tough economy sometimes the difference between making it and surviving until things get better and going bankrupt is a very small amount of money. The CPC plan will actually help. The Liberal plan will tip a lot of folks who are on the edge over.

[August1991]

This is politics pure and simple. Harper has created a wedge issue b/w the Liberals and Tories and it's up to Canadians to decide what they want. This looks like the main platforms squaring off with each other.

I have to agree.

This gives all Tory candidates a ready answer when voters ask what the Tories will do to reduce the price of fuel. It also means that the Tories can sharply contrast themselves withe the Liberals.

When all is said and done, the tree huggers make more noise but more people drive cars.

[gc1765]

Another stupid adjustment to consumer taxes. Why can't they just reduce tax on income?

Couldn't agree more. Cut income taxes, not consumption taxes. The promise to cut the excise tax is even dumber than promising to cut the GST.

[Riverwind]

Couldn't agree more. Cut income taxes, not consumption taxes. The promise to cut the excise tax is even dumber than promising to cut the GST.

Generally I would agree but in this case the cuts only apply to diesel and aviation fuel which are huge input costs for businesses rather than consumers. This will help keep inflation and prices down and help Canadian businesses compete.

[jdobbin]

When all is said and done, the tree huggers make more noise but more people drive cars.

Certainly we know the Conservative response to the environment.

Stupid promise since fuel prices continue to drop just as they did today.

[betsy]

This is politics pure and simple. Harper has created a wedge issue b/w the Liberals and Tories and it's up to Canadians to decide what they want. This looks like the main platforms squaring off with each other.

The Liberals are going to increase the gas tax by 7cents per liter on top of the 4 cents making it a total of 11 cents! This was being discussed at MDuffy.

Edited September 10, 2008 by betsy

[jdobbin]

The Liberals are going to increase the gas tax by 7% per liter on top of the 4% making it a total of 11%! This was being discussed at MDuffy.

The Tories promised to reduce the excise tax last election and didn't do it.

[Foxer]

The Tories promised to reduce the excise tax last election and didn't do it.

I don't recall them making that promise - gst, children's 'sport' tax and other income tax, etc but i don't recall them promising to reduce the excise tax. Do you have a reference for that?

[jdobbin]

I don't recall them making that promise - gst, children's 'sport' tax and other income tax, etc but i don't recall them promising to reduce the excise tax. Do you have a reference for that?

It was the promise in 2004 and 2005. I should have said it was the GST on the gas tax was to be removed when gas reached 85 cents a litre.

http://heathercartersblog.blogspot.com/200...rom-harper.html

What happened to the Conservative 3-point plan for gas tax relief? In the 2004 election, Stephen Harper vowed to eliminate the 7 per cent GST on any portion of gas prices above 85 cents per litre. He also promised to halt Ottawa’s practice of applying the GST to the full price of gasoline, including federal and provincial excise taxes – the tax on tax.

http://www.taxpayer.com/main/news.php?news_id=2867

# In opposition, the Conservatives made repeated promises to remove the GST tax-on-tax bite and pledged to remove the GST completely when gasoline prices exceeded 85 cents per litre. In the summer of 2005, Mr. Harper was quoted saying that gas taxes could be reduced by as much as 5 cents a litre.

# Three Conservative budgets have failed to lower gas taxes although roadway spending is substantially increased.

That's a lot of years of not fulfilling that promise.

[blueblood]

The Tories promised to reduce the excise tax last election and didn't do it.

In all fairness I'd like to see how the tories are going to pay for this. This promise sounds expensive. Liberal strategists should be asking this question. The idea sounds great as far as I'm concerned, I want to know the specifics.

If the tories don't explain that, then this promise sounds like hot air.

[Foxer]

This promise sounds expensive

Its been estimated to cost 600 million. Not small change, but not really expensive as far as federal spending goes.

[jdobbin]

In all fairness I'd like to see how the tories are going to pay for this. This promise sounds expensive. Liberal strategists should be asking this question. The idea sounds great as far as I'm concerned, I want to know the specifics.

If the tories don't explain that, then this promise sounds like hot air.

It was actually the GST on the gas tax. They reaffirmed it in 2005 and the CTF has been on them for that ever since.

[Foxer]

It was the promise in 2004 and 2005. I should have said it was the GST on the gas tax was to be removed when gas reached 85 cents a litre.

Ok - but in fairness if he didn't run on it as part of his platform, then it's not a 'broken promise'. If the platform changes between one election or another or one year or another as the overall plan changes, thats kind of the way it is. You can say it's a little indecisive or that he flipped on that issue but it's hardly a broken promise.

For example - last year dion was against carbon taxes. If he were elected now and put in the green tax - of all the things I might say I wouldn't say he broke a promise. A gov't is only responsible for the platform they run on.

I think you have to call a spade a spade - it may be a change of direction or the like, but the only promise that is a promise is one made to the electorate during a campaign, or one made while in office during the term of that office only.

Dion said he'd raise the gst a year or so ago - now he said he wouldn't consider it. If elected - does that mean he's broken his promise no matter which way he goes? I think not - he's said he wouldn't during an election campaign, and it would be a broken promise if he did. (i'm not going to discuss whether or not i think he'd break it )

[jdobbin]

Its been estimated to cost 600 million. Not small change, but not really expensive as far as federal spending goes.

However, the Tories have already broken their 2006 election promise about not overspending.

http://72.14.205.104/search?q=cache:UFEhcY...;cd=2&gl=ca

Limit the future growth of spending on federal grant and contribution programs and

by federal departments and agencies (other than National Defence and Indian Affairs)

to the rate of inflation plus population growth.

As the CTF has pointed out, the Tories have never met that promise. Ever.

[jdobbin]

Ok - but in fairness if he didn't run on it as part of his platform, then it's not a 'broken promise'. If the platform changes between one election or another or one year or another as the overall plan changes, thats kind of the way it is. You can say it's a little indecisive or that he flipped on that issue but it's hardly a broken promise.

Since he mentioned it during the campaign in the 2006 election, the CTF have been holding his feet to the fire on the issue.

Edited September 9, 2008 by jdobbin

[August1991]

Its been estimated to cost 600 million. Not small change, but not really expensive as far as federal spending goes.

I think that's a key fact in this promise - it doesn't cost much but it provides candidates a ready answer when knocking on doors.

Harper also noted that the 2% cut in the GST means that gasoline prices are lower than they would have been.

----

I think the Tories are looking to close the deal now. They got their foot in the door in 2006 but now they need a closer. It's like when the car dealer gets the wife to try the vanity mirror/security lock or explains the bumper-to-bumper warranty scheme. Nuts and bolts stuff to reassure the customer.

[jdobbin]

I think the Tories are looking to close the deal now. They got their foot in the door in 2006 but now they need a closer.

And heading to a massive Tory majority.

[Chameleon]

http://www.theglobeandmail.com/servlet/sto...9/BNStory/Front

I have a feeling this is a promise like the cuts to the G.S.T. that they will keep and will resonate with Canadians.

I have also a feeling that this is also a promise that they the Liberals would keep this promise too....much to the pain of every Canadian.

While I am big on the whole green movement, I believe carbon taxes are just another sham with green sugar coating. The Liberals want to shift green alright, but the environment has little to do with it. They will tax the hell out of energy producers who will pass that directly onto us at the pumps and indirectly through transport costs, all so that they can buy some votes in Ontario and maybe Quebec and pocket the rest. While Harpers plan seems modest, it will significantly help to provide relief for those struggling with the ballooning cost of living. As for the impact to the environment, usage of diesel and jet fuel wil not rise much above what it was not so long ago when prices were not so inflated. Canada's more immediate problems are economic, not environmental, although both should be addressed. I am confident that Stephen Harper is the one to achieve this balance if given the chance.

- Chameleon

[jdobbin]

- Chameleon

This font must have been written by a chameleon since I am unable to read it on the screen since it blurs together.

Edited September 10, 2008 by jdobbin

[capricorn]

Same here. The letters run together.

[Chameleon]

Same here. The letters run together.

Sorry about that folks, looks fine on my screen. (My eyesight is a bit weak so I prefer bold fonts).

To reiterate (legibly)...

While I am big on the whole green movement, I believe carbon taxes are just another sham with green sugar coating. The Liberals want to shift green alright, but the environment has little to do with it. They will tax the hell out of energy producers who will pass that directly onto us at the pumps and indirectly through transport costs, all so that they can buy some votes in Ontario and maybe Quebec and pocket the rest. While Harpers plan seems modest, it will significantly help to provide relief for those struggling with the ballooning cost of living. As for the impact to the environment, usage of diesel and jet fuel wil not rise much above what it was not so long ago when prices were not so inflated. Canada's more immediate problems are economic, not environmental, although both should be addressed. I am confident that Stephen Harper is the one to achieve this balance if given the chance.

- Chameleon