It's New Year's Eve and Harpie's on the Campaign Trail. As reported yesterday, he returned to the scene of his previous GST announcement, an electronics store in Mississauga:"Harper is to visit the same electronics store on Monday in Mississauga, Ont., where he first unveiled the Conservative party's pledge to reduce the goods and services tax to five per cent from seven per cent over five years."I just watched the dork Live on TV, where he announced that "2008 will be a Happy New Year for Canadian taxpayers, as the GST will be cut from 7 to 6 to 5%, 3 years ahead of schedule". "From 7 to 6 to 5%" appears to be the operative buzz-phrase, a mantra intoned several times during the presser.
Though a GST cut sounds good, it's mostly optics: in reality it only rewards those who buy the most "big ticket" items. On a purchase of $50, the GST cut saves you a grand total of 50 cents. Wow. An income tax cut would be far more equitable, since it would benefit everyone who works and pays income tax -- we wouldn't have to buy a new car or fridge or stereo system to realize noticeable savings. Back in late 2005, when Harper made the same announcement on the campaign trail, economists agreed:
"If you want tax cuts that are going to promote work, going to promote saving, help us invest more and raise living standards in the future, the GST is not the tax you would go after." Robson said it would be better to cut personal income taxes."What are the odds of Harper scoring a majority out of this Christmas re-gifting? From 7 to 6 to 5%?
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