Canada Day means GST cut

Today, Canada Day, is when the Conservative government's 1% reduction to the GST comes into effect. The GST is now at 6%.

Now this is my question. Does anyone think they are going to notice a difference?

Taxes are death by a thousand cuts. If we can get government to continue to reduce all areas of taxation every little bit will add up to one large noticable difference.

I will find out in about twenty minutes or so. I purchased a package of cigarettes yesterday, and they cost me $7.01 after tax. I'm going to be purchasing another package today, and I'll report back if I notice a change.

Sure they will, and all day I will have to watch people inspect their receipts to make sure that they saved that one percent. Morons.

Hey, I'm one of those morons that just saved $0.07 on a pack of cigarettes. I don't know about you, but I'm one happy moron today!

At 5 packs a day that adds up quick.

Sorry, I'm just predicting my day at work. I guarantee that every single person on their way out will be examining and (attempting to) doing the math on just how much they saved.

But I'm bitter about humanity that way. Retail does that to you.

You know what they say... A penny saved, is a penny earned... And I just earned seven of them.

And I dutifully reported my savings here like a good $0.07 agent. The name's Ton... Simple... Ton!!!

Oh, you work in retail? Good for you. I work at home. Lots of long hard hours pumping out product, but it pays off if you stick to it and have a plan.

But you're probably right. When I went to the convenience store, I looked at the little display and said, "Oh! The price went down." The cashier there wasn't too impressed with my excitement, but I'm not trying to impress anyone.

Seven measly cents. Wow!

If the government really wanted to give out a tax cut, why didn't they just leave the lowest personal income tax rate at 15% instead of increasing it to 15.5%.

First of all, the cut was the Conservatives fulfilling a campaign promise.......a new and exciting concept, wouldn't you agree?

Secondly, there is to be a second cut of one percent, thus eliminating abot 30% of the GST tax.

Thirdly, the lowest-income 25 percent of Canadians don't even pay income tax, so the .5% increase in income taxes means ABSOLUTELY nothing to them, while we all pay GST.

They don't generally pay a whole lot of GST either. You know, since necessities aren't taxed and most of what they spend their money on are necessities.

Oh, and anyone else see that newsletter from the CTF about 'sin taxes' increasing? Seems the Cons don't like us smoking or drinking.

But thats getting off topic.


Its twenty five minutes into my shift. No one has noticed yet, although I haven't actually talked to anyone so that may be why.

Not everybody pays GST! I hate when stephen harper goes on TV and says EVERYONE pays GST and EVERYONE will benefit. Not true! Those low-income people get a GST rebate...sure they may have to wait until the end of the year to get it, but they do get that money back. I make enough money to pay income taxes, but since all of my money goes to tuition/rent/food, I won't save much from the GST cut. I guess I'll save together all those extra pennies so I can use them to pay my income tax.

bunch of tinkerputt nonsense that may as well have been handed straight to the banks and probably should have been since at least that way it would have called markers.

Low income people will STILL get the rebate.....I believe.

HUH?

The irony is that it's usually financially responsible individuals who appreciate the 1%. Those who already have their finances in order. As stated above: 'a penny saved is a peny earned'.

A reduction in taxes is a positive trend. Better than an increase. A federal surplus and decreased taxes would have been pie-in-the-sky 20 years ago.

You know who this is really going to hurt? Wait staff. Seriously, I know an awfully large number of people that calculate their tips by doubling the GST. Where does that leave the poor smucks depending on gratuities? Down two percent on their wages, thats where. :P

That's the lamest reason I've heard for not reducing taxes. It's odd how you know an awfully large number (what? 500?) who calculate a tip this way and I've never met any. My friends must just be math literate. hint. People left tips before there ever was a GST.

Wow, and did the :P clue you in to that being a joke? No?

Maybe I have to work on my delivery...

I assumed that the GST rebate will decrease proportionately. I could be wrong. I couldn't find any answers about this on the Canada Revenue Agency website. Anyone know the answer?

Novelty aside, its of no consequence.

1% of about $45,000 per household is $450 per year.

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Minus food. Is rent / morgage taxed (if it is, its included in mine)? If not those two items are close to half of that $45,000.

Check the link.

Average household spending in N.L.

What am I missing? Out of that 45, 12 is shelter, 7 is food. Neither of these are taxable through the GST (I'm not entirely sure about the shelter). That means that only 26,000 is being taxed so the average N.L family will save $250. A princely sum to be sure.

LRG

The first column is Canada

Total expenditures 63,636

Less

Food 6,910
Shelter 12,200
Reading materials and other printed matter 283
Education 1,078

You are correct, GST is not charged on rent. It is also not charged on used homes. I think it may be charged on new homes but I'm not sure exactly how it works. Also tuition is not taxed.

Oh missed the second column. You are still reading it wrong.

TE = 63,636

Less

PI Tax 12,905
Insurance and Pension 3,645
Gifts of money and Contributions 1,652

The total consumption includes food, shelter etc.

Oh, you're right.

So its about $300 per household.