Canada Pol Thread!(About lowering the tax)

[CrONoS]

Hi!

Sorry to start a new thread for canadian political debate. But the other one was pretty interesting to read but was going too far from my points.

I want to know your tought about this idea proposed by Harper.

Is this a good idea to lower the TPS? From 7% to 5%?

[notyoueither]

No **** Sherlock!

[notyoueither]

Ahem...

Yes, I believe it is a very good idea. It returns taxes to people across the board, and to those who need it most (who pay little or no federal income tax as is) as well as the 'fat cats'.

Aside from that, it just might prove to be the lever that topples the Liberals out of power for a short while. That would have to be a good thing.

[CrONoS]

Yep, from a political view it's really a good choice. It aim the middle-class elector who are the majority of elector. This can help conservative to gain vote in the ROC(Rest of Canada, we exclude Quebec).

But I think it's a better choice to focus on out debts and pay it as soon is possible... Faster is better.

Originally posted by notyoueither
Ahem...

Yes, I believe it is a very good idea. It returns taxes to people across the board, and to those who need it most (who pay little or no federal income tax as is) as well as the 'fat cats'.

Aside from that, it just might prove to be the lever that topples the Liberals out of power for a short while. That would have to be a good thing.

[joncha]

Damn straight. Sales taxes are regressive, and should be scrapped.

[Hot Mustard]

I'd rather a reduction in Income Tax.

Think about it - a GST reduction benefits people with excessive consumption moreso than thrifty (me!), or responsibly-spending people, whereas an Income Tax reduction benefits everyone.

[joncha]

That's such a BS argument. People with low incomes don't even have the option of excessive consumption. Getting an extra $200 means far more to them than $20,000 does to a millionaire.

[notyoueither]

There is something to be said for breaks on consumption, but the fact is that even the poorest pay GST while they do not pay income taxes.

When the government is running nothing but surpluses lessening the tax load is a good idea. Full stop. The rest is squabbling about who gets how much.

Incidently, I wonder if this will have an impact on GST rebates. If it does, then the benefit to the poor would be blunted.

[Wezil]

Originally posted by dejon
I'd rather a reduction in Income Tax.

I'd like both actually....

Problem is, I can't trust Martin to deliver on his promise. The last time Martin cut my income taxes he raised my CPP and EI payments at the same time which took away the tax cut.

Think about it - a GST reduction benefits people with excessive consumption moreso than thrifty (me!), or responsibly-spending people, whereas an Income Tax reduction benefits everyone.

You got it backwards. GST cut will benefit everyone, whereas Income Tax cut only benefits (directly) those with an income.

[Kontiki]

Politically it's a good move. I'm somewhat torn on the practicality. I don't mind the government collecting surpluses provided the money is used to pay down the debt. However, that hasn't been the case (at least entirely), so the question becomes is it better to cut taxes or use the money to increase government spending. Again, I wouldn't mind the increase in government spending provided it was done productively - infrastructure improvements, investments in education, etc. Basically spending that will have a positive future return in terms of productivity. However, if we're not going to see those kinds of investments, I'd rather have a tax cut.

[KrazyHorse]

Originally posted by joncha
Damn straight. Sales taxes are regressive, and should be scrapped.

Not necessarily.

The GST, because it doesn't apply to certain necessities (groceries, rent, maybe some utilities) is not completely regressive. Also, those on the lowest end of the income scale receive a GST rebate each year with their income taxes.

The people it hits most are those for whom consumption of goods not excluded comprises the largest portion of their annual income. This is obviously the middle class. People making less than the norm have less of their income (as a percent) to spend in restaurants, electronics stores etc., so the GST costs them less of their income (as a percent). Above a certain income point, most income is not consumed at all, so the GST burden, as a percent of income, begins to decrease again.

The GST is fundamentally a tax on the middle class, and as such is pretty unfair.

The problem with reducing it is that it comprises 17% of federal government revenues. Decreasing it from 7% to 6% will cost the federal government 5 billion dollars per annum.

[Wezil]

I'd be happy with honest budget projections, something we haven't seen in decades (I include Mulroney in this criticism for underestimating deficits).

Be honest about the funds available then have the debate on priorities. Will we invest in infrastructure, reduce taxes,pay down debt, or all of the above?

I'm tired of being told the cupboard is bare so we can't debate what to do with the surplus that doesn't exist, only to be told 6 months later we have billions extra and here's how we are spending it.

[Wezil]

KH - Have you heard if any adjustments are to be made to the refund cheques for GST? NYE raised the issue earlier...

Hopefully they aren't talking about giving with one hand and taking away with the other.

[KrazyHorse]

I have no idea. It would be nice to get a firm promise from Harper either way.

If he starts acting squirrelly when the issue is raised then I think we know what the answer is.

[KrazyHorse]

If they don't reduce the rebate cheques by the same 1/7 factor then the reduction in the GST will cost the gov't even more every year.