Harper vows to cut GST to 5%

[Canuck E Stan]

Shooting blanks right at Martin, your lucky his gun is empty.

Maybe the big Liberal gun registry will find some unregistered guns to fire some real bullets at Harper. Paul's going down,big- time, one day at a time.

[shoop]

We do know that the NDs won't form government. The way things are going now neither will the Liberals.

I'm glad Harper is lowering the GST.  As the polls have shown, it is popular with the public too.

He is also going to unveil some more tax cuts.  I hope he lowers corporate taxes, and the personal income tax for everybody (1 percentage point per tax base would be nice), instead of discriminating against the productive--like Paul "we lead the world" Martin did with his tax cut for only the first tax rate.

I'm all for keeping more of MY money, because no one manages MY money as good as I do...and that includes the Conservative Party.

The Liberals are crooks and the thought of the NDP getting ahold of my money is terrifying.

<{POST_SNAPBACK}>

[lovecanada]

I'm glad Harper is lowering the GST.  As the polls have shown, it is popular with the public too.

He is also going to unveil some more tax cuts.  I hope he lowers corporate taxes, and the personal income tax for everybody (1 percentage point per tax base would be nice), instead of discriminating against the productive--like Paul "we lead the world" Martin did with his tax cut for only the first tax rate.

I'm all for keeping more of MY money, because no one manages MY money as good as I do...and that includes the Conservative Party.

The Liberals are crooks and the thought of the NDP getting ahold of my money is terrifying.

<{POST_SNAPBACK}>

I have to agree with everything you say

The only "scary" thing is blind Liberal followers.

[sharkman]

I think the bottom line is this GST move is really finding favour with average Canadians and will maintain support even if stuffy economists disagree on it.

[sharkman]

I think the bottom line is this GST move is really finding favour with average Canadians and will maintain support even if stuffy economists disagree on it.

<{POST_SNAPBACK}>

Oh yah, and that Martin attacked it so vigorously just showed how worried he is about it.

[scribblet]

You learn something new everyday, and another reason to want a cut in the GST.

http://wakinguponplanetx.blogspot.com/2005...d-you-know.html

GST on Savings - Did YOU Know?

I sure didn't! According to Stephen MacPhail, President and C.O.O. of CI Financial, the government is quietly taxing our savings - even though they were originally exempt from GST (for obvious reasons, one would have thought).

"Now that the GST has become an election issue, Canadians should be aware of the severe impact of this tax on their financial well-being. Over one-third of adult Canadians own mutual or segregated funds, yet few know of the hidden GST that is taken out of their savings. What is shocking is that the GST is supposed to be a consumption tax, yet is now quietly draining about $750 million annually from Canadians’ nest eggs.

When the GST was introduced, financial services were exempted for good reason – savings clearly are not consumption. Though many financial services remain exempt from GST, the savings vehicle used most by average Canadians was specifically targeted by the federal government. In 1997, the government quietly introduced legislation to ensure that GST would apply to mutual funds, segregated funds, wrap accounts and other managed savings products.

If the Ontario government harmonizes its sales tax with the GST, then the tax on savings would exceed $1 billion annually. As Canadians save more, the bite taken by the GST will keep growing – and in a way that is hidden from view. By the time many Canadians retire, they will have unknowingly paid tens of thousands of dollars of GST on their savings. How does this make sense when the government’s own figures show that the vast majority of Canadians do not save enough to maximize their RRSP contributions?" (emphasis mine)

So Harper needs to remove GST on all savings products at the same time he drops the rate from 7% to 5%.

[Riverwind]

So Harper needs to remove GST on all savings products at the same time he drops the rate from 7% to 5%.

Why don't you try reading the entire article:

UPDATE: It has been confirmed in the comment section that GST is charged on transactions, not on the savings, which makes much more sense.

[The Honest Politician]

Who are the Conservatives trying to kid with this GST rollback?

Who benefits more, the average working slob who has $500 per month of expendable income? Or the wealthy and rich who have thousands of dollars per month of disposable income?

At $500 of disposable income per month the average Joe will save $10 whole dollars due to the 2% GST reduction.

Someone who can afford to spend $5000 dollars a month of expendable income, will save $100 due to the 2% GST reduction.

So who is the reduction really for. It looks like the people who buy Cadilacs and Porches will be the ones to reap the most benefit of a GST reduction.

If Harper was serious about helping the middle and lower class citizens of this country he would have increased the GST suppliment check people already receive. Instead he wants to save his oil rich, core supporters in Alberta,and the elite classes in the other provinces, 2 cents on every dollar of disposable income.

The only people who this really saves money for are those who have the money to spend in the first place.

When will people learn, EVERY TAX BREAK IS FOR THE RICH. No matter how they spin it, so that it looks like the poor and middle class are benefitting, the track record shows the rich are the ones who get the most from any tax break or reduction.

[sharkman]

Who are the Conservatives trying to kid with this GST rollback?

Who benefits more, the average working slob who has $500  per month of expendable income? Or the wealthy and rich who have thousands of dollars per month of disposable income?

At $500 of disposable income per month the average Joe will save $10 whole dollars due to the 2% GST reduction.

Someone who can afford to spend $5000 dollars a month of expendable income, will save $100 due to the 2% GST reduction.

So who is the reduction really for. It looks like the people who buy Cadilacs and Porches will be the ones to reap the most benefit of a GST reduction.

If Harper was serious about helping the middle and lower class citizens of this country he would have increased the GST suppliment check people already receive. Instead he wants to save his oil rich, core supporters in Alberta,and the elite classes in the other provinces, 2 cents on every dollar of disposable income.

The only people who this really saves money for are those who have the money to spend in the first place.

When will people learn, EVERY TAX BREAK IS FOR THE RICH. No matter how they spin it, so that it looks like the poor and middle class are benefitting, the track record shows the rich are the ones who get the most from any tax break or reduction.

<{POST_SNAPBACK}>

I'm not sure why you picked $500 of disposable income, but even CTV news thinks the typical Canadian would immediately save 360/year which is close enough to the CPC estimate of $400. As to your eat the rich philosophy, aren't they the ones that pay the top tax bracket which is around 42%. Then there is all the luxury taxes they have to pay and an objective person can see that they are paying their share like everybody else.

[hiti]

I'm not sure why you picked $500 of disposable income, but even CTV news thinks the typical Canadian would immediately save 360/year which is close enough to the CPC estimate of $400.  As to your eat the rich philosophy, aren't they the ones that pay the top tax bracket which is around 42%.  Then there is all the luxury taxes they have to pay and an objective person can see that they are paying their share like everybody else.

<{POST_SNAPBACK}>

Great!!! In order to save that $400 in GST that is estimated by Harper I would have to buy $20,000 in goods that are charged GST. The average Canadian does not have $20,000 to spend on GST taxable goods each year because they are spending their money on non-taxable items like rent, mortgage, insurance, groceries.

I like Goodales plan to raise the exemption by $500 and the lowering of the tax bracket by 1% that has become effective in 2005. That will save $400 plus for everybody without having to spend to save.

[Yaro]

The introduction of the GST was necessary because of NAFTA, and that situation has not changed. It did nothing more then shift the taxes from manufacturers to consumers and it won't be disappearing any time soon.

A few facts that have been misrepresented in this post.

GST is a progressive tax, those with higher incomes pay more GST then those with lower incomes. Therefore any reduction in the GST is regressive in nature.

Savings are not taxed, never have been.

Taxes in Canada compared on a worldwide standard are not heavy, indeed they are light compared to most first world countries and extremely low for a first world country running a surplus.

I'm glad Harper is lowering the GST. As the polls have shown, it is popular with the public too.

Which polls? I have only seen support for the liberals on the steady rise?

He is also going to unveil some more tax cuts. I hope he lowers corporate taxes, and the personal income tax for everybody (1 percentage point per tax base would be nice), instead of discriminating against the productive--like Paul "we lead the world" Martin did with his tax cut for only the first tax rate.

Our corporate taxes rates are already lower then all of our competitors why would we lower it further? What advantage would that provide? It should also be noted that income level is only to a minimal extent related to productivity. Indeed it is just this reduction in RoL that has caused many of these issues to begin with.

I'm all for keeping more of MY money, because no one manages MY money as good as I do...and that includes the Conservative Party.

Considering how warped your arguments have been on virtually every topic I have a great deal of difficulty believing you would invest your money 1/10th as well as the Liberals have. However it’s moot because it’s not your money, what is yours and what is mine is a manner of social contract. In absence of said contract what is yours is what you have the ability to defend and what is mine is what I have the ability to defend.

The Liberals are crooks and the thought of the NDP getting ahold of my money is terrifying.

That’s funny actually the thought of the Conservatives getting into power and putting the country back into deficit with fiscally unwise tax cuts is pretty terrifying to me.