What they should have done was introduce a 2% PST when the GST was cut and basically turn that into a revenue transfer from the federal to provincial level. The individual tax burden would have remained the same and thus the political fallout would have been muted. To late for that now thou.
Really, the flat tax has to go. It's not like you can't introduce a progressive tax regime and still have the lowest in Canada. I'd probably keep corporate taxes the same for now and revisit when the global price of oil recovers.
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