Stephen Harper thinks that cutting the GST by two per cent would make a real economic difference to all Canadians. What say our writers? Read on…
On December 1, Stephen Harper announced his intention to reduce the GST by two per cent over his five-year term. With this proposal Harper is seeking to provide an up-front, tangible means of returning money to all Canadians, regardless of wealth. It only makes sense that Canadians should be allowed to keep as much of their own money as possible. As it is, the tax hits citizens’ wallets while allowing businesses to avoid these same expenses. The result? Basic goods and services increase in price for ordinary Canadians.
The Conservative plan is the first step towards fixing what the Liberals failed to do. As noted by one commentator, the Liberals, after promising for twelve years to remove the GST, are now in the awkward position of having to defend it. They must now pretend that what they had been unconditionally denouncing as “regressive,” “hated,” and “the worst tax in Canadian history” is somehow suddenly essential to Canadian financial sustainability. The fact that the GST has helped the Liberals run up enormous surpluses doesn’t seem to register. Ultimately, what Harper wants to do makes real, tangible sense to ordinary Canadians and is a sound first step towards correcting the mistakes of the past.
-Peter O’Hagan
Reducing the GST does nothing for the real priorities of ordinary Canadians. How, for example, would a two per cent reduction make an impact on our commitment to climate change, or help lower crime rates? How would it reduce wait times, or improve education? In fact, for all its expense, reducing the GST would not improve a single thing for ordinary Canadians.
This policy should act as a bright red flag that signals the kind of regressive and polarizing politics we can expect from a Harper government in the future. Reducing the GST is expensive, favours the already affluent, and can only be paid for by cutting back services that people depend on.
A reduction in the GST would widen the gap between the rich and poor in Canada. That would be politically and socially disastrous for our country. But then again, Stephen Harper, former head of the National Citizen’s Coalition and author of the infamous Firewall Letter (Google both), is not shy when it comes to supporting policies that run counter to our best interests.
-Jeremy Kirouac
