Harper Revolution

[White Doors]

Originally Posted by Bobblehead

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.

Nope, they specifically stated that there would be no change to the GST rebate.

[Kerplunk]

I think the easiest ones to push through would be accountability reforms, crime crackdown and cutting down on wait times. These seem to be fairly high on the "need to have" list of Canadian voters, and would face the least resistance (or changes) going through the House.

The others are iffy. Almost all of the other parties had ideas about child care and tax cuts, and none match up with the Conservative view, so there is going to be a lot of bickering before these are voted on.

The other problem is that we have had so many elections in the past while that few want to have another. How do you oppose something without looking like you are purposefully trying to halt Parliament and drawing the ire of the voters? I'd say it will be a few years before any of the parties gear up for another election.

[FlamesAddiction]

Originally Posted by White Doors

Regardless, the lowest income earners would receive absolutely no benefit from an income tax reduction as they are already exempt from it.

Who is exempt from income tax? Even people who make minumum wage still pay some income tax.

[MarchHare]

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.

The GST, like most sales/value-added taxes, is a regressive tax that puts a greater tax burden on lower-income citizens than those with higher incomes.

Anyway, if you're not planning to buy a new house or car anytime soon, the income tax cut implemented by the Liberals (which Harper plans to repeal) would probably put more money in your pocket. If you are planning to buy large-ticket items, though, a cut to the GST is probably a greater benefit to you.

[Cube Inmate]

Originally Posted by FlamesAddiction

Who is exempt from income tax? Even people who make minumum wage still pay some income tax.

Partially right, and partially wrong. The lowest income earners pay something, but it's not technically "income tax."

You do not pay any income tax on your first $9039 of gross earnings. You may have taxes deducted at the source, depending on your "projected" annual earnings, but any tax withheld on that money is refundable. At minimum wage for a full-time job (~2000 hours), you're right...their earnings would be more than $9039 and they would pay some tax. For a part-time job, maybe not.

The other taxes: Everyone pays CPP premiums of 4.95% on their gross earnings between $3500 (the exemption limit) and $42,100. It's just a tax by another name, but the lowest of the low-income earners are exempt.

Everyone pays EI premiums up to $39,000 of gross earnings. No exemption there based on low income, as far as I'm aware.

In Alberta, you're exempt from health care premiums if you earn less than about $17,000. The personal income tax exemption is also higher than the federal one, meaning someone can earn up to $14,799 in Alberta and not pay anything to the province.

Summary...in order, a low income earner pays:
$0-3500: EI only
$3500-9039: EI and CPP
$9039-14799: EI, CPP, and federal income tax
14799-17000: EI, CPP, federal income tax, Alberta income tax
17000+: EI, CPP, federal income tax, Alberta income tax, health care premiums

I might be missing some things here, but I just wanted to point out that the lowest income earners do not pay income tax, although they still do pay certain taxes by another name.

Interesting. Correct me if I'm totally wrong.