Canada's National Finances

[Argus]

KISS: Keep it simple, stupid theory. Reduce GST by 2% to 5%.

Don't ask the CEOs with their million dollar options perks, instead ask the poor if that is what they would like.

<{POST_SNAPBACK}>

Yeah. Sure. At the same time let's ask our kids if they want candy for dinner.

[Riverwind]

How about the investor who borrows $8 Million, adding it to his own $10 Million, investing in a portfolio that will pay him $900,000 per year in dividends.  He can deduct the $900K interest cost from his $900K dividend and end up with a zero tax bill.

Why is this any different from a hot vendor that makes 20/year selling hot dogs but deducts 20K for teh cost of buns and sausages?

[shoop]

KISS: Keep it simple, stupid theory. Reduce GST by 2% to 5%.

<{POST_SNAPBACK}>

Why are you ignoring the idea of increasing the income threshold and amount paid for the GST credit?

By reducing the GST to 5% you are reducing the amount of GST that CEOs pay.

By refunding more money via the GST credit you are putting more money in the hands of the lowest income Canadians.

Or do your really want to put more money in the hands of CEOs?

[cybercoma]

Reducing the GST by 2% would surpass the surplus and cut into government spending. Unless you're willing to discuss what government spending is going to be cut, cutting the GST by 2% is just not an option.

[kimmy]

KISS: Keep it simple, stupid theory. Reduce GST by 2% to 5%.

Don't ask the CEOs with their million dollar options perks, instead ask the poor if that is what they would like.

I thought you were the guy who was *opposed* to irresponsible tax cuts.

-k

[mirror]

A 2% cut in the GST is finacially doable and will help the folks at the lower end of the financial ladder proportionally much more than those at the top. The surprise surpluses that Goodale seems to discover each year would absorb the reduction in the GST tax revenues to our national government.

I find it quite stange that all those clammering for tax reductions don't want the GST reduced!

[Riverwind]

I find it quite stange that all those clammering for tax reductions don't want the GST reduced! 

Why don't you try reading what people said on the topic. The federal gov't depends too much on income taxes. Diversifying the tax base is a important thing to do, therefore, the GST should stay the same or go up. Tax reductions should come out of income tax since the federal govt collects 4-5 times as much income tax as GST. I would like to see the feds collect the same amount of money from the GST and income tax.

[mirror]

Why don't you try reading what people said on the topic. The federal gov't depends too much on income taxes.

Says who? The Fraser Institute? Canada's CEOs?

Am I allowed to disagree. Seriously! :angry:

[Riverwind]

Am I allowed to disagree. Seriously!  :angry:

And I am allowed to point out that you are over reacting to high profile visible taxes and that you need to look at the big picture.

[mcqueen625]

I would like to see a tax decrease for those with less than $50,000. annual income to offset all the tax loopholes that those above that income bracket are privvy to.

For once, I agree with you mirror. The basic exemption should be raised to nsomething like $15,000 or even $20,000 and the GST should be extended to all items, including food.

Many, many people wouldn't have to pay any income tax at all.

<{POST_SNAPBACK}>

While I agree with some of your assertion I have to totally disagree that the GST should be extended to everything, since we are already apying tax on tax with this GST/HST. I believe that there should be no GST/HST on any necessities of life such as clothing, footwear, heating oil, electricity bills, FOOD, and yes even the telephone bill since the implementation of the 911 system it is basically essential for everyone to have access to telephone service.

You suggest that many would not have to pay income tax at all, well many already don't have to income tax, but many of those same individuals are forced through necessity to eat at soup kitchens and visit food banks on a regular basis. I am involved as a Board Member with one of the provincial Associations of Food Banks, and one of the fastest growing industries in Canada is both food banks and soup kitchen usage. Our federal government made a committment over 15 years ago to eliminate child poverty by year 2000, and here it is 2005, and the porblem has gotten much worse instead of better. Imposing GST on everything is just going to give our government more money to piss away on useless initiatives that will do nothing to solve the problem of our children having to go to bed hungry. This is a national disgrace, and needs to addressed positively, not by piling more of a tax burden onto those who already pay no income tax.

I have never seen a government initiative that is actually meant to help ordinary Canadians, because our government's (federal, provincial & municipal) are more concerned with following a corporate agenda, which allows these greedy corporation to not pay their fair share of the costs associated with running this country. At one time those costs wer split roughly 50/50 between individuals and corporations now it is more like 90/10 in favour of the corporate sector. I certainly don't call that a fair split of responsibilities.

If we lambaste the people with even more GST/HST it will just make matters worse. In the Maritimes for instance we were stupid enough to combine our PST with the GST, and we now have the HST. New Brunswick for instance cannot arbitrarily decide to take the HST off certain commodities like gasoline, heating oil, clothing, or electricity bills without concensus of the other Atlantic province participants.

[mirror]

Am I allowed to disagree. Seriously!  :angry:

And I am allowed to point out that you are over reacting to high profile visible taxes and that you need to look at the big picture.

<{POST_SNAPBACK}>

Who appointed you the authority on what's best for Canadians?

The corporate elites are always screaming about tax reductions.

Reducing the GST by 2% helps all citizens and helps the least financially privileged the most.

Once we have been able to incorporate a 5% GST into our economic system then in the future years we can take a look a reducing it even more.

You are way too greedy to making any kind of decisions on behalf of Canadians because you do not represent our collective interests.

[Riverwind]

Reducing the GST by 2% helps all citizens and helps the least financially privileged the most.

You do not understand how the tax system works. If you want to target tax relief at the most needy then you should increase the personal exemption for income tax or reduce EI premiums. Both would have a more tangible effect than reducing the GST. What you can't seem to grasp is: "THE POOR DON'T PAY GST". I say this because the vast majority of what the poor spend money on (food, rent, etc) is not taxable and large portion of the GST that they do pay is refunded with the GST tax credit. I did the math for you in a previous post.

[mirror]

Let's ask the middle and lower clases if they want a reduction in GST or income taxes, and see what THEY want, instead of the RICH deciding for them what they want.

[stubblejumper]

What's this spin about taxes punishing the rich ?

They should proud of themselves for putting so much back into the country/community they live in.

Who pays more should be bragging rights !!One should strive foir greater income just because it gives more back to everyone around him. That should be peoples outlook, not a plasma tv.

[cybercoma]

Reducing the GST by 2% helps all citizens and helps the least financially privileged the most.

You do not understand how the tax system works. If you want to target tax relief at the most needy then you should increase the personal exemption for income tax or reduce EI premiums. Both would have a more tangible effect than reducing the GST. What you can't seem to grasp is: "THE POOR DON'T PAY GST". I say this because the vast majority of what the poor spend money on (food, rent, etc) is not taxable and large portion of the GST that they do pay is refunded with the GST tax credit. I did the math for you in a previous post.

<{POST_SNAPBACK}>

Not to mention that the current surplus is only equivalent to about 1.5 points of the GST and reducing it to 5% would mean mirror should address where he believes government funding should be cut to make up for the difference. Unless he would like to simply move 0.5% points of the GST to another tax. We're talking for over $2 billion that would be unaccounted for here.

[cybercoma]

What's this spin about taxes punishing the rich ?

They should proud of themselves for putting so much back into the country/community they live in.

Who pays more should be bragging rights !!One should strive foir greater income just because it gives more back to everyone around him. That should be peoples outlook, not a plasma tv.

<{POST_SNAPBACK}>

What pride is there in being obligated to pay? The pride should come from the free will to pay back into the community through churches and charities. That means a hell of a lot more than having your bank account ransacked by the government for their pet projects.

[mirror]

What's this spin about taxes punishing the rich ?

They should proud of themselves for putting so much back into the country/community they live in.

Who pays more should be bragging rights !!One should strive foir greater income just because it gives more back to everyone around him. That should be peoples outlook, not a plasma tv.

<{POST_SNAPBACK}>

What pride is there in being obligated to pay? The pride should come from the free will to pay back into the community through churches and charities. That means a hell of a lot more than having your bank account ransacked by the government for their pet projects.

<{POST_SNAPBACK}>

Nonsense.

The rich don't pay or give their time to charities. Check the stats.

The reality is you have to pry anything the rich have away with a crowbar to get anything out of them.

[stubblejumper]

Even Adam Smith was quite worried that "hording" and "greed" would destroy the "free" market.