Quote:
Originally Posted by Slava
That's why things like the GST credit and exemptions exist. A high GST means a higher GST credit, and reduced income taxes mean that for lower income people they pay less tax as well.
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This is a really good point. One of the best things of GST as a consumption tax is they have tried to make it as progressive as possible by excluding a lot of basic necessities. Things that low income people will spend the bulk of their money on is already exempt.
I wouldn't mind seeing it go even further towards a luxury tax, where the GST % scales with the size of the purchase. A $15,000 civic can be taxed differently than a $70,000 Sienna.
There are lots of options to move our taxation system to a consumption based over income based while still ensuring the bottom rung isn't punished.