[SebC]

Originally Posted by spotthefan

Trudeau government to announce GST holiday and $250 Cheques

Didn't like the Ralph Bucks or Ford Bucks but if one side can do it so can the other.

I do like the pause on GST on certain items. This should be made permanent for children's items and groceries.

All you inflation haters know that this is inflationary policy, right?

It's actually kind of politically and economically stupid. Cutting GST gives suppliers profit-incentive to raise prices. And if voters hate anything, they hate inflation.

GGG nailed it. This is crap.

GST cut on Christmas trees? Do Christmas trees have positive externalities? Why is there no GST holiday on Menorahs? How about atheists, what do we get? Why can I avoid GST by buying premixed drinks but if I buy hard liquor and make my own cocktails I still pay it? These are exactly the kind of economic distortions a free-market society wants to avoid.

And of course, GST cuts preferentially help people who spend more. Children's toys? 5% discount doesn't help a low-income parent give their child a significantly better Christmas but for a wealthy family 5% off their Christmas gifts could add up to substantial chunk of change (in absolute terms).

It's poor use of the government's fiscal capacity and real fiscal conservatives should be tearing them to shreds for it.