Quote:
Originally Posted by PepsiFree
First and foremost: debt reduction. Second: stability, as a stable PST would make our economy less susceptible to the swings on natural resources.
Then, depending on the success of the first two, you could bring down corporate and income tax.
I think it’s just generally wiser to tax spending over earning.
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There is absolutely no chance that the NDP or the UCP would put any windfall from a consumption tax towards reducing the debt. Wrong platforms, weak will and wrong leaders for that to happen.
The second point has merit, but is locked into the health of the economy as a whole, so using that as a crutch could lower the standard of living, if the government in place doesn't spend thoughtfully on infrastructure and social policies.
I would also mention that a consumption tax favours the rich, as the money spent by the poor and middle class remain somewhat constant to reach the necessities of life. The rich however can simply bank money and either spend in another jurisdiction, or sit on it. (You would have to look at it as spending as a percentage of income, rather than total money spent)