Budget Coming down today - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

White Doors · 05-02-2006, 01:28 PM

Supposed to be lots of tax breaks and money for the military.

Thoughts?

ken0042 · 05-02-2006, 01:48 PM

I'm interested to see when the GST is coming down to 6%. I would think they'd have to do it right away; otherwise there'd be a mini-recession as people hold off buying big ticket items.

Log · 05-02-2006, 02:06 PM

Quote:

Originally Posted by ken0042

I'm interested to see when the GST is coming down to 6%. I would think they'd have to do it right away; otherwise there'd be a mini-recession as people hold off buying big ticket items.

I've heard the effective date will be July 1.

albertGQ · 05-02-2006, 02:23 PM

Businesses need time to recalculate their computers for a 6% GST as opposed to a 7% GST. The 1% cut will not be effective immediately. I see this cut come into affect in a couple of months. End of summer maybe?

browna · 05-02-2006, 02:30 PM

Quote:

Originally Posted by albertGQ

Businesses need time to recalculate their computers for a 6% GST as opposed to a 7% GST. The 1% cut will not be effective immediately. I see this cut come into affect in a couple of months. End of summer maybe?

Computer software and accounting programs can be changed instantly. That said, it can't happen instantly.

June 1 or most like as you say Ken, July 1, is the most likely lead time.

Mr. Ski · 05-02-2006, 02:39 PM

Confirmed as July 1. GST rate to be determined in the interim based on the date of invoice.

Buy something today, get invoice today = 7%
Buy something today, get invoice July 1 = 6%

Sounds like a good compromise so that people don't hold off on big ticket items for two months.

CrzyCanuck · 05-02-2006, 02:42 PM

That will go against the matching principle of accounting!

Mr. Ski · 05-02-2006, 02:49 PM

From wikipedia:

The GAAP matching principle. Expenses have to be matched with revenues as long as it is reasonable to do so. Expenses are recognized not when the work is performed, or when a product is produced, but when the work or the product actually makes its contribution to revenue. Only if no connection with revenue can be established, cost can be charged as expenses to the current period (e.g. office salaries and other administrative expenses). This principle allows greater evaluation of actual profitability and performance (shows how much was spent to earn revenue). Depreciation and Cost of Goods Sold are good examples of application of this principle.

Don't quite see how this violates it. To avoid any violations, all invoices would have to be produced the instant something was purchased. That's rarely the case. That's what 'acruing' an expense is all about.

I-Hate-Hulse · 05-02-2006, 03:56 PM

I can totally see retailers offering "6%" GST sales to try and get consumers to purchase now, rather than later. The 1% isn't exactly huge unless you're getting into big ticket items, and typically those'll have enough negotiation room that the retailer would gladly absorb the cost to make a sale.

Crap - now how will I quickly determine what to tip - triple the GST? Or appear as a cheapskate and just go double it?

browna · 05-02-2006, 08:19 PM

Even with the pouting CBC spin, most seem to be onside with this being a very popular budget with all demographics.

metallicat · 05-02-2006, 08:48 PM

The CPC comes through with their election promises - say it isn't so!

Time to buy a house now. A 1% GST savings on a house is fairly significant. About time there is a nice tax savings for the middle class.

Eddie Bronze · 05-02-2006, 08:59 PM

Quote:

Originally Posted by Mr. Ski

Confirmed as July 1.

I don't really know how else they could have done it. Anyone who runs a business pretty much has to pay GST quarterly, so it would be quite a mess to have two different percentages to figure out in one reporting period.

Two questions about this for anyone who saw it.
1. How does the GST reduction effect the HST in the Maritimes? Or does it? Will they ever get a tax break out there?

2. I heard briefly something about anyone who has a job getting $500 at a certain point and then $1000 at a later date. An anti-welfare, anti-ei stance which I love. I was in another room when that was being said and kind of missed it, can anyone give some details about that?

FireFly · 05-02-2006, 11:22 PM

GST is calculated in the HST. The only reason its harmonized is to prevent one province from gaining an advantage over the others in the area. If the Maritimes wants to keep the HST the same, the individual provinces just end up collecting the extra % themselves. I should think they'd start a riot if that happened.

browna · 05-02-2006, 11:28 PM

Quote:

Originally Posted by Eddie Bronze

2. I heard briefly something about anyone who has a job getting $500 at a certain point and then $1000 at a later date. An anti-welfare, anti-ei stance which I love. I was in another room when that was being said and kind of missed it, can anyone give some details about that?

From CBC.ca

At the same time, the government is introducing a new Canada employment benefit that will offer working people a $250 tax credit for 2006 to cover work-related expenses, such as home computers, uniforms and supplies. The credit rises to $1,000 for the 2007 tax year.

BlackArcher101 · 05-03-2006, 12:04 AM

Shoot, does this mean my GST rebate cheque will go down?

theJuice · 05-03-2006, 01:39 AM

Damn, some of those are actually pretty decent.

Regulator75 · 05-03-2006, 05:37 AM

Quote:

Originally Posted by BlackArcher101

Shoot, does this mean my GST rebate cheque will go down?

Are they still giving these out?

White Doors · 05-03-2006, 07:28 AM

I heard that it was confirmed that each Maritime province was passing the 1% reduction on through their HST. Oh, and firefly - the reason they combined them was because before there was a tax on a tax and it also makes for easier book keeping.

FlamesAddiction · 05-03-2006, 08:29 AM

Quote:

Originally Posted by browna

From CBC.ca

At the same time, the government is introducing a new Canada employment benefit that will offer working people a $250 tax credit for 2006 to cover work-related expenses, such as home computers, uniforms and supplies. The credit rises to $1,000 for the 2007 tax year.

They don't get that money in their pocket.

In actuality, they only get 15.5% (might vary depending on your tax bracket) of that back on taxes already paid. That is the way all tax credits work, and most people will not be eligible for the majority of the "new" credits anyway.

I-Hate-Hulse · 05-03-2006, 08:31 AM

Some other tidbits that might be of interest to students and parents:

Textbook Tax Credit - $65/month for FT students, $20 for PT.

Children's Fitness Tax Credit - $500 for enrollment of your kids in an anti fattness program.

Transit Pass - not sure exactly if it's 1 month that's a credit or 12 months, but there's something here.