Quote:
Originally Posted by mariners_fever
Sure there is.
Yes, if they were going to cut a tax, it should have been a proportionate amount of income tax as opposed to GST. A consumption tax is always economically more sound for government revenue than a lump sum tax. That said, a lower rate of total taxation increases consumption more than it decreases government share of GDP and sometimes increases revenues if spending is higher.
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We are nowhere near the inflection point of the Laffer curve.
The GST cut was objectively bad in the type of tax that was cut. That is the crux of the argument. (I would go further and say that the tax cut should've also been delayed until it could've been used as a stimulus measure.)