Maybe economists should talk to my son, he understands that a 1% reduction in the GST is good for him, as he doesn't pay any income tax, but must pay the GST. Next time he goes to buy a computer game, he gets to keep more of his money in the bank, even if its only 10 cents more, that's more than the bank pays him in interest in a month.
John Williamson has it right. Watch the video on the right. He states that economists are using "absurd logic".
John Williamson, of the Canadian Taxpayer's Association, said the combined two percentage point cut to the GST will save Canadians between $10 and $12 billion in 2008.
"And for your typical household across the country the combined saving is between $300 and $400 a year. So it is a welcome tax cut and it's one that I think most Canadians recognize is going to be helpful," Williamson told CTV Newsnet.
"And I think more importantly than that, because the economics can be questioned, but it's one that was important because the government promised they would cut the tax to 5 per cent and now they've done so."
So, enjoy the tax cut. Here in Alberta it means that all we pay is 5%. If the GST reduction is such a bad move, why aren't provinces stepping up and increasing the PST? If it's only a few bucks in savings to individuals, what's the big deal? Come on Dalton, grow some, increase that PST, you can use the money to help with infrastructure, education and healthcare. Nope, the Premier prefers to go beg Ottawa for more money, blaming them for all of Ontario's troubles. All provinces have got to get off the federal teat, not latch on tighter.