GST - Should it be raised?

[Goober]

Should the GST be raised. As a consumption Tax it is the fairest tax possible. The more you consume the more you pay.

Should it raise with corresponding lowering of Income Tax Rates. Lower incomes to gain more (GST Rebates) and higher thresholds for basic Income Tax - Increasing support for elderly low income.

Food and other items would be exempt, such as prescription drugs and I am sure a few more could be added.

Myself I think the Cons have screwed up the Tax system with some useless deductions -Sports for one - Transit for another.

And cutting the GST. Dumb move.

 

[In Between Man]

No! Lower taxes means more money in my pocket! The Conservatives did the right thing by cutting it from seven to six and then to five. Keep going!

 

[Goober]

No! Lower taxes means more money in my pocket! The Conservatives did the right thing by cutting it from seven to six and then to five. Keep going!

For a tax it is the fairest way to tax. The more you consume, the more you pay.

 

[Spade]

No! Lower taxes means more money in my pocket! The Conservatives did the right thing by cutting it from seven to six and then to five. Keep going!

Nonsense, lowering the GST by 2 cents costs the federal treasury upwards of $10 B a year. That money could be used to lower deficits or fund social programmes.

GST revenue
Overall ($) Revenue Per percentage point ($)
2002-03 28.3B 4.0B
2003-04 28.3B 4.0B
2004-05 29.8B 4.3B
2005-06 33.0B 4.7B
2006-07 31.3B 4.8B
2007-08 29.9B 5.0B
Source: Department of Finance


The amount you save as an individual is negligible. Were the GST cuts passed on to the consumer?

Recall: "What does it profit a man..."?

 

[damngrumpy]

Fairness is of course relative to the reason you are consuming. For example if I
have lots of income and sufficient disposable income paying tax on consumer
goods is not a burden at all. The same can be said if I have lots of income and
I pay more tax it is not as serious as someone who has almost no disposable
income and is paying taxes.
The poor however don 't see it as fair as you might. If they require items that are
taxed and pay that tax there might not be disposable income to buy enough milk
for the children today. Oh they get refunds and what have you because they are
poor. They do not get their amount of tax returned, and more important they need
the money today for necessities not in a few months when some is returned.
Besides I am not in favour of these taxes as the business community gets almost
everything back and they don't pay for the their fair share in the end. Secondly
if they were to lighten the income tax burden on the business community they
would get almost everything back without paying anything in the end.
What should happen is their should be an income tax reduction of sorts and then
close all the deduction loopholes for everyone including business.
We have to get everyone paying something. I believe business should not get
away with passing the bulk of their tax burden on to consumers and at the same
time I believe even those on social assistance should pay even five or ten dollars
a month for taxes, as it reflects their contribution by income, and at the same time
the image of everyone paying allows those on assistance an even say as they
would be paying taxes too.

 

[In Between Man]

Were the GST cuts passed on to the consumer?

Is five a lower number than seven?

 

[Goober]

Is five a lower number than seven?

If you had a choice of a women, would you choose a 5, a 7 or a 10

 

[In Between Man]

If you had a choice of a women, would you choose a 5, a 7 or a 10

Neither! No babe's puttin' a saddle on this bronco!

 

[gerryh]

Myself I think the Cons have screwed up the Tax system with some useless deductions -Sports for one - Transit for another.

and how is the sports and transit deduction stupid? Oh, I know, because it is one deduction that people like you don't get to take advantage of, therefore it's a "stupid" deduction. Guess that shows who you actually think about. It's all about "me, me, me" isn't it goober.

 

[WLDB]

No! Lower taxes means more money in my pocket! The Conservatives did the right thing by cutting it from seven to six and then to five. Keep going!

Seemed like a good idea at the time, sure. The recession and huge deficit have changed that. Now it looks like a mistake.

 

[Goober]

and how is the sports and transit deduction stupid? Oh, I know, because it is one deduction that people like you don't get to take advantage of, therefore it's a "stupid" deduction. Guess that shows who you actually think about. It's all about "me, me, me" isn't it goober.

No. In fact I claim it. Read up on how effective these tax deductions are. I also claim my charitable deductions and hope that one day they would receive the same tax deduction rate as donations to political parties rates.

So before you throw me under the bus, I may in fact be on it. No, not really, my wife uses the bus. A 15 % deduction.

 

[In Between Man]

Seemed like a good idea at the time, sure. The recession and huge deficit have changed that. Now it looks like a mistake.

Well lower taxes all around stimulates economic growth, so if we're willing to lower the corporate tax rate it only seems reasonable that everyday consumers like you and me also get a tax reduction. Lower taxes help combat a recession and as far as the deficit is concerned, we can keep lower taxes if we're willing to cut costs in other areas.

 

[Goober]

Well lower taxes all around stimulates economic growth, so if we're willing to lower the corporate tax rate it only seems reasonable that everyday consumers like you and me also get a tax reduction. Lower taxes help combat a recession and as far as the deficit is concerned, we can keep lower taxes if we're willing to cut costs in other areas.

We have a massive debt - We have many that cannot find affordable housing - Infrastructure is failing. How much do you save between a 5 or 7 % rate.

 

[Spade]

The average savings, per Canadian, by lowering the GST two points is in the neighbourhood of $0.83 per day. For the poor, the savings are much less as they pay a much larger proportion of their income on non-GST items. The poor are not helped by lowering the GST for more well-to-do Canadians.

 

[In Between Man]

We have a massive debt

Which will never be paid, because extra revenue from raised taxes won't immediately go to paying off the debt, it'll go elsewhere.

- We have many that cannot find affordable housing

All the more reason to donate to charitable organizations that house people. The government can't do it all.

How much do you save between a 5 or 7 % rate.

Knowing my spending habits, probably thousands by now.

 

[Goober]

Which will never be paid, because extra revenue from raised taxes won't immediately go to paying off the debt, it'll go elsewhere.

All the more reason to donate to charitable organizations that house people. The government can't do it all.

Knowing my spending habits, probably thousands by now.

You clearly make over 100 k a year?

 

[damngrumpy]

Actually the government and the economists are trying to convince us we are not
in recession. I don't think reducing taxes at this time is a good idea either. We have
to pay for the things we need as a society and secondly not paying the bills for
infrastructure means higher costs for all in the future. If you lower taxes you lower
services and infrastructure renewal and it makes it a lot more expensive when
reality sets in.

 

[In Between Man]

You clearly make over 100 k a year?

Not last year! But in 2010, almost.

 

[gerryh]

No. In fact I claim it. Read up on how effective these tax deductions are. I also claim my charitable deductions and hope that one day they would receive the same tax deduction rate as donations to political parties rates.

So before you throw me under the bus, I may in fact be on it. No, not really, my wife uses the bus. A 15 % deduction.

Well, I know for a fact you don't get the sports deduction and haven't qualified for it for a good many years, actually, it wasn't a deduction back when you probably would have qualified for it.

 

[Goober]

Actually the government and the economists are trying to convince us we are not
in recession. I don't think reducing taxes at this time is a good idea either. We have
to pay for the things we need as a society and secondly not paying the bills for
infrastructure means higher costs for all in the future. If you lower taxes you lower
services and infrastructure renewal and it makes it a lot more expensive when
reality sets in.

And the GST, also known in many countries as a VAT - Value Added Tax, has been shown time and again as the fairest way to tax.

If you are against a raise in GST will tax credits, rebates for the low income, what does that say about a person holding that position.
To me, I am in the high income rate and a raise in GST would affect me substantially.

Me I vote for the low income.