Comments on: What’s Good About the GST Cut? http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: This and That http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2582 This and That Fri, 11 Jan 2008 00:27:55 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2582 [...] Canadian Dream adds his voice to those who question the value of another cut to the GST. [...] [...] Canadian Dream adds his voice to those who question the value of another cut to the GST. [...]

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2535 Canadian Dream Wed, 09 Jan 2008 12:12:47 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2535 Excellent points everyone. It's good to hear I'm not the only one who thought the cut was a stupid idea. Tim Excellent points everyone. It’s good to hear I’m not the only one who thought the cut was a stupid idea.

Tim

]]> By: Greps http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2511 Greps Tue, 08 Jan 2008 16:10:59 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2511 Sales taxes are a tax on the poor, the fact that they give a GST rebate is an outright admission of it. The rebate itself only covers the tax portion of those living a pauper lifestyle (ie Not Coleens sister!) all others (read most) pay a disproportion percentage of their incomes realative to the wealthy. Period. Huckabee's Fairtax plan (Poli-speak) was founded by a group of extremely wealthy Texan lobbyists. While there are some positives in the plan it suffers a couple of fundamental failings: As always first sighted, the wealthy can only buy so many big screen TVs the rest is invested and their overall tax rate ends up being less. The spin argument here is that eventually someday the money will be spent and subjected at that point taxation. To be fair though then we should allow everyone to deffer their taxes until they are deceased - that should work.... How does the government direct tax breaks at specific areas of the economy when incentives may be needed - ie how would you direct a tax break at the middle class? The plan simply isn't realistic, Canadian cigarette smuglers can tell you why real quick. The tempatation and ease of tax evasion is pervasive. How do you stop a Florida statelite subscriber from cancelling Dishnet and buying Expressview with a creditcard on the web? It does not work unless your plan was really to replace the IRS with a monsterous organization that is going to monitor every fiscal transaction of every citizen in the country. Scary thought, Big Brother Anyone? Sales taxes are a tax on the poor, the fact that they give a GST rebate is an outright admission of it. The rebate itself only covers the tax portion of those living a pauper lifestyle (ie Not Coleens sister!) all others (read most) pay a disproportion percentage of their incomes realative to the wealthy. Period.

Huckabee’s Fairtax plan (Poli-speak) was founded by a group of extremely wealthy Texan lobbyists. While there are some positives in the plan it suffers a couple of fundamental failings:

As always first sighted, the wealthy can only buy so many big screen TVs the rest is invested and their overall tax rate ends up being less. The spin argument here is that eventually someday the money will be spent and subjected at that point taxation. To be fair though then we should allow everyone to deffer their taxes until they are deceased – that should work….

How does the government direct tax breaks at specific areas of the economy when incentives may be needed – ie how would you direct a tax break at the middle class?

The plan simply isn’t realistic, Canadian cigarette smuglers can tell you why real quick. The tempatation and ease of tax evasion is pervasive. How do you stop a Florida statelite subscriber from cancelling Dishnet and buying Expressview with a creditcard on the web? It does not work unless your plan was really to replace the IRS with a monsterous organization that is going to monitor every fiscal transaction of every citizen in the country. Scary thought, Big Brother Anyone?

]]> By: ThickenMyWallet http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2502 ThickenMyWallet Tue, 08 Jan 2008 01:29:32 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2502 The worse thing about this tax "cut" was that the government recently admitted it doesn't have enough money in the coffers to stimulate the economy in the event of a severe down-turn because less revenue coming in as a result of the tax cut. This means the GST cut robbed us of financial flexibility. I don't know about you, I also got a notice in the mail promoting the cut from CRA. Way to spend my money responsibly. The worse thing about this tax “cut” was that the government recently admitted it doesn’t have enough money in the coffers to stimulate the economy in the event of a severe down-turn because less revenue coming in as a result of the tax cut. This means the GST cut robbed us of financial flexibility.

I don’t know about you, I also got a notice in the mail promoting the cut from CRA. Way to spend my money responsibly.

]]> By: Traciatim http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2501 Traciatim Tue, 08 Jan 2008 00:58:52 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2501 LOL@Lise . . . after reading the article all I could think of was 'today my teas was 1.54 instead of $1.55 . . . I'm RICH!' LOL@Lise . . . after reading the article all I could think of was ‘today my teas was 1.54 instead of $1.55 . . . I’m RICH!’

]]> By: Lise http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2500 Lise Tue, 08 Jan 2008 00:09:14 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2500 I am saving 2 cents a day on my Starbucks coffee. $3.84 a year. Woohoo. I'm sure I'll be glad if I buy a new condo, but really? Would this not have been better spent on something else like, humm, I don't know, health care? Infrastructure? Fighting poverty? I am saving 2 cents a day on my Starbucks coffee. $3.84 a year. Woohoo.

I’m sure I’ll be glad if I buy a new condo, but really? Would this not have been better spent on something else like, humm, I don’t know, health care? Infrastructure? Fighting poverty?

]]> By: MillionDollarJourney http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2498 MillionDollarJourney Mon, 07 Jan 2008 23:26:39 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2498 I 2nd that Nobleea. Although a income tax reduction would have been more sensible (but not politcal), the GST cut is great for those buying new houses. Like me. :) I 2nd that Nobleea. Although a income tax reduction would have been more sensible (but not politcal), the GST cut is great for those buying new houses. Like me. :)

]]> By: nobleea http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2497 nobleea Mon, 07 Jan 2008 20:26:52 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2497 Down in the states, presidential hopefull Huckabee is proposing a flat consumption sales tax (something like 30%), with no income or state taxes. I think the GST should have been increased, not decreased. It's a political move that appeals to voters that don't really understand finances. Consumption should be taxed while savings and investments should be encouraged. But I must admit, having bought a new condo when the first GST cut came in to play, the extra money back was quite nice. Down in the states, presidential hopefull Huckabee is proposing a flat consumption sales tax (something like 30%), with no income or state taxes.

I think the GST should have been increased, not decreased. It’s a political move that appeals to voters that don’t really understand finances. Consumption should be taxed while savings and investments should be encouraged.

But I must admit, having bought a new condo when the first GST cut came in to play, the extra money back was quite nice.

]]> By: Dave P http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2494 Dave P Mon, 07 Jan 2008 18:23:37 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2494 Excellent point Elaine; last year our maid service (don't snort - huge sustainer of marital bliss in our house) suggested keeping the price the same and passing on the tax reduction as a wage increase to staff. Who wants to argue with that? Excellent point Elaine; last year our maid service (don’t snort – huge sustainer of marital bliss in our house) suggested keeping the price the same and passing on the tax reduction as a wage increase to staff. Who wants to argue with that?

]]> By: guinness416 http://blog.canadian-dream-free-at-45.com/2008/01/07/whats-good-about-the-gst-cut/comment-page-1/#comment-2493 guinness416 Mon, 07 Jan 2008 17:54:25 +0000 http://blog.canadian-dream-free-at-45.com/?p=320#comment-2493 Heh, Elaine that was my first thought too - that a lot of things will just get balanced up. I was vainly hoping for the one cent to the cities, although there was never much hope with this bunch. Heh, Elaine that was my first thought too – that a lot of things will just get balanced up. I was vainly hoping for the one cent to the cities, although there was never much hope with this bunch.

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