Thursday, January 19, 2006

About that GST cut...

So they’re gonna cut the GST. By two whole percent none the less. So how does that affect you and I, the average joe of Canada? Let’s take a look, a realistic one. The GST is what’s known as a consumption tax. What this means is that the more we spend, the more we would, in theory, save. The reason I put it this way is because I doubt saving two cents on the dollar is going to change much about the way Canadians spend. However, let’s humour them. A recent study has shown that this will save the average low-income, Canadian family (approximately 15-25000 per year in salary) $143 per year. Where is this money going to be saved? Well, there’s no GST on groceries (unless we’re talking chips, soda, etc, not exactly necessity), so it won’t help there. Gas prices show no signs of slowing down, and no 1-2 cent difference is really gonna help prices there. So where does this GST cut really help Canadians? Well, if you happen to be spending 50-60K a year on cars, or clothing, or other fun luxuries, this is perfect for you. For the rest of Canada, big deal. Let’s take this cut for what it is, a tax break for those who spend lots of money.
Also, to do this, Harper will be repealing the income tax cut that Martin has already applied, as well as the raising the personal exemption amount again. So in the end, the less fortunate among us are going to pay for the more fortunate to buy more expensive toys. Is anybody really shocked by this? How long until Harper starts toying with minimum wage, benefits, or job security? Big business all the way baby!!

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