Harper Revolution

[HOZ]

Inthis Ottawa Citizen article it outlines the 5 things Harper will try to do before he is ousted. So do you think he can do it?

http://www.canada.com/ottawacitizen/...f-a2a5eb4c4368

[CaptainCrunch]

It depends, Harper dosen't have the advantages that Martin had during the Liberal minority. The Senate is stuffed with Liberal's who have basically already said that they won't play nice with anything coming through that does not reflect thier Liberal values.

Basically, Harper has to find a way to play nice and show some success so he can win a majority and reform the senate.

The accountibility act will pass, The bloc will probably support the tax cuts, and the Liberals would be stupid not to get on board with the law and order reforms. But in my mind theres no way that the child care act will be passed even though the Liberal's never managed to even put one together, this will be a major platform plank for them. Even though in my mind the Health Wait Times program is badly needed, the Liberal's have to stick to thier old tired crap that this is an attack on nationalized medicine.

I'm thinking three out of five and an election by October

[White Doors]

One can only hope that he can.

No election in October, the liberal leadership race concludes in December, not to mention that they are broke.

[FlamesAddiction]

Lower Taxes
The centrepiece is a promise to immediately reduce the GST by one point, to six per cent. It would be further lowered to five per cent within five years. The costly promise will be financed by cancelling some of the personal income-tax cuts enacted by the Martin government.

I hope he doesn't succeed on that one.


A 1% cut on the GST doesn't help the vast majority of Canadians who rarely, if ever, make purchases huge enough that saving 1% on sales tax will impact them.

I'd much rather see the savings on income tax.

[metallicat]

I hope the GST reduction DOES occur. I'm looking to buy a house, and that would be a nice little savings. Not everything a government does needs to benefit the lower income families.

[Resolute 14]

Originally Posted by FlamesAddiction

I hope he doesn't succeed on that one.


A 1% cut on the GST doesn't help the vast majority of Canadians who rarely, if ever, make purchases huge enough that saving 1% on sales tax will impact them.

I'd much rather see the savings on income tax.

?

Spend some time to calculate just how much you spend on GST taxable goods every year. Even if you are only saving a few cents each time you buy something small, it adds up mighty quickly.

[transplant99]

Originally Posted by Snakeeye

?

Spend some time to calculate just how much you spend on GST taxable goods every year. Even if you are only saving a few cents each time you buy something small, it adds up mighty quickly.

Nevermind that it is a complete and utter taxgrab of unprecedented proportions to begin with.

Mulroneys legacy, and it stinks to the nth degree.

[CaptainCrunch]

I think the GST cut is fairer because the GST cut effects everyone as oppossed to what would amount to a .05% cut on your income tax. Your saving money everytime you buy groceries, or gas or clothing which are essentials.

[Bobblehead]

Originally Posted by CaptainCrunch

I think the GST cut is fairer because the GST cut effects everyone as oppossed to what would amount to a .05% cut on your income tax. Your saving money everytime you buy groceries, or gas or clothing which are essentials.

Groceries are not taxed, unless they are items for immediate consumption (i.e. 1 doughnut is taxed, a dozen are not)

[Knut]

Cutting back the GST can also work to increase the amount that people spend on goods... bringing more money back into the economic cycle...

even 1 or 2 % can make people think extra hard about buying something.

[edn88]

The unfortunate thing about the GST cut, is that it is actually the fairest tax of all. With income tax, those who pay the most, have the most ability to avoid income tax with different tax shelters etc.

GST on the other hand is directly linked to your spending. Spend a lot, get taxed alot... and since taxes are supposed to go to public good, presumably if you are a big consumer of stuff, you should be paying for more infrastructure. Example - if you buy $10,000 in goods in a year, your GST will pay for all of the government things possible to get those goods to you including roads, schools, corrupt politicians etc.

Having said that, I think that Harper is thinking by putting some money back into the pockets of the people, they will be able to spend it and thus spur the economy - just look at how Ralph Bucks spurred the local Alberta economy. A certain percentage of that spending will make it back into the government coffers theoretically increasing the over all tax take.

I just wish they would leave the GST and focus on cleaning up income tax (or better still pay off some debt - ala Alberta)

[FlamesAddiction]

Originally Posted by CaptainCrunch

I think the GST cut is fairer because the GST cut effects everyone as oppossed to what would amount to a .05% cut on your income tax. Your saving money everytime you buy groceries, or gas or clothing which are essentials.

But it's still really only a tax break that helps people who spend a lot. Only wealthy, big spenders will really benefit. Most people will be saving only a bit pocket change from this tax break.

ie. You have to spend a lot to end up saving a lot.

The average person who spends little is not going to see a difference.

[edn88]

FA - I agree, should have elaborated more... I think that by spurring the economy, the GVT gets more $$$, more jobs are created, etc all good things for the common person...

[White Doors]

Originally Posted by FlamesAddiction

But it's still really only a tax break that helps people who spend a lot. Only wealthy, big spenders will really benefit. Most people will be saving only a bit pocket change from this tax break.

ie. You have to spend a lot to end up saving a lot.

The average person who spends little is not going to see a difference.

no to mention it is a tax break for the lowest income earners that a income tax break would not help them AT ALL. If you make less then the exepted amount, no income tax break will help at all as you already do not pay it. That said it was a wiser political move to cut the GST than a wise economic one.

[FlamesAddiction]

Originally Posted by White Doors

no to mention it is a tax break for the lowest income earners that a income tax break would not help them AT ALL. If you make less then the exepted amount, no income tax break will help at all as you already do not pay it. That said it was a wiser political move to cut the GST than a wise economic one.

Unless the tax break also allowed lower income people to get more money back on their taxes.

[White Doors]

Originally Posted by FlamesAddiction

Unless the tax break also allowed lower income people to get more money back on their taxes.

How do you get more money 'back' when you pay nothing in??

[FlamesAddiction]

Originally Posted by White Doors

How do you get more money 'back' when you pay nothing in??

Most employed people, even those with low incomes, have taxes taken off their checks. Then based on their yearly income, and what tax breaks are available, they receive money back at the end of the year.

And it would probably have a bigger impact on whatever they save from having to pay 6% GST, instead of 7%.

[White Doors]

Regardless, the lowest income earners would receive absolutely no benefit from an income tax reduction as they are already exempt from it.
Income tax breaks from the liberals are always aimed at the lowest bracket for income taxes because it makes them feel good about themselves, but they tend to forget that the lowest tax bracket does not include the lowest income earners there are, those being under the income of $8,500 odd dollars per annum.

[ken0042]

The one thing with cutting back the GST is it paves the way to eliminate it. In 1993 the Liberals promised to get rid of it, and suddenly saw that they couldn't afford to. Harper saw this and made a more realistic promise; to cut it down to 6%, and to look at cutting it down to 5% in a couple of years.

[Bobblehead]

Originally Posted by White Doors

How do you get more money 'back' when you pay nothing in??

In this case, then they will be getting GST rebate cheques. If you lower the GST, I would assume you lower the rebate cheques too.