Quote:
Originally Posted by Dan02
Analysts suggest the GST cut cost the government about 7 billion per percentage cut. At the debate the one thing the opposition partys were going on about during the economic portion was the 150 billion dollar debt the conservatives have rung up. Not cutting the GST would have covered the vast majority of that.
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I don't think that is accurate, do you have a source?
If I recall each GST point is about 5 billion and that assumes that people would spend the same amount with a higher tax. It's not like that money just disappears, it goes straight back into the economy. People make it sound like Harper just lit that money on fire or something.