I just asked, that no wonders about GST were started in 1991 also add 7% to goods and services, exempt from food/beverage, children clothes, children care, education service and some other services. Does Canada is used to low sale tax in before 1991 when GST was formed. There's nothing compared to 12% sale tax in LA since late 80's until mid 90's because they need more funding for new subway system and new LRT.

Does GST is exempt from food/beverage (groceries)? How about restaurant?

I'm not too bothered while I get my GST cheque every four months. Mind you when I start making serious money and stop seeing those cheques come: well then, goodbye GST.

Although, I'd rather keep the GST if that tax went to the benefit of cities and public transit. Canada is doing too much talking lately on the issue of public transit; not enough action on it. They need to start doing major public infrastructure improvements in all our cities. Do it while times are still somewhat good. We'll be grateful for it in the future.

I think it is better to keep the GST and reduce other taxes like the income tax. I am pretty sure GST is already exempt from grocery stores and that is probably a good thing.

I am with Tri City Guy. Instead of eliminating the GST, I would like to see the federal government invest more in our cities' infrastructure because it is sorely needed.

Processed food / beverages is not exempt, fruits are exempt for example.

Processed food / beverages is not exempt, fruits are exempt for example.

What's Processed food/beverages means? How about Mountain Dew?

I am with Tri City Guy. Instead of eliminating the GST, I would like to see the federal government invest more in our cities' infrastructure because it is sorely needed.

I guess that make three of us.

That money can do much to improve city infrastructure.

Cutting the GST does nothing for Canada's poorer families, who are not likely to spend much anyway. Income taxes are a much better bet.

Cutting the GST was Harpers lameass bid to buy votes from idiots... and it worked! Man, I just can't wait to save %1 on my next trip to BestBuy!

WE NEED THE GST!!!

Cutting taxes is not the answer. We have the best social programs in the world because of the money generated from cashmakers like the GST.

If anything, Harper should use that 1% cut and redirect it to TRANSIT!

Then the Toronto Transit Commission as well as other Canadian cities' subway systems, will be able to grow!

:)

Cutting the GST does nothing for Canada's poorer families, who are not likely to spend much anyway. Income taxes are a much better bet.

Cutting the GST was Harpers lameass bid to buy votes from idiots... and it worked! Man, I just can't wait to save %1 on my next trip to BestBuy!

Cutting the income taxes will be much better?

yes mountain dew is taxable, but a bottle of water is not.

a frozen pizza is taxable, but tomatoes and apples are not.

Processed food = transformed food, is taxable.

Cutting the income taxes will be much better?
Using basic macroeconomics, GST is a consumption tax, which means it's an incentive for people to save and invest rather than spend. Generally, countries with higher savings and investment have better productivity growth, which leads to a higher standard of living. On the other hand, since income tax applies to investment earnings, that's a disencentive to invest.

Cut income tax, I only pay about 50$ to GST a month, if that, so it won't help me, and I need to save as much money as I can. Income tax cuts are the way to go. :)

Absolutely cut the GST. It was originally intended to be temporary (as was Income
Tax, when it was introduced after WWII). That way maybe we can avoid the
ridiculous and embarassing situation every year with Finance Minister saying:
"Oh my GOSH!! I have no idea where this 9 Billion dollar surplus came from. Oh my,
what a surprise. Whatever shall I do with it? Maybe buy some votes for the next
election?"

I'm a little confused by the question. When you say illiminate the GST, do you mean illiminate the revenue generated by it, or just shift the revenue generating process?








"It was originally intended to be temporary"


No it wansn't....it was meant to replace the 13.5% "Manufacturers' Sales Tax" (MST), that had already been in place at the wholesale level, and only applied to Canadian manufactured goods.

The arguement was that it was unfair to apply this tax only to Cdn manufacturers, as it hurt their ability to compete with foreign goods, especially with free trade illiminating tarrifs. And that it was also unfair to heavily tax only one portion of the economy.

It was "supposed" to be revenue neutral, just spread the tax throughout the whole economy, so all goods and services contributed. It was unpopular, because the old MST was "hidden", so the average consumer didn't even know it existed, because it was already charged at the wholesale level, and just passed onto the retail price (outa sight, outa mind). The idea was that without the built in MST, the price of manufactured goods would come down, making cdn manufacturers more competative, and the higher prices for services would make up the difference.

But it wasn't revenue neutral at all...it became a cash cow the government wasn't willing to give up. The price of manufactured goods also did not drop accordingly (retailers treated it as a cash cow as well).

Once the government has the money, it's unlikely they want to give it up. Any suggestions that they do I would be suspect that it's just a big paper-shuffle game.







KGB

If the government can keep downloading responsibilities to cities why not download some tax base to cities?

Instead of 7% GST why not 5% GST and 1% municipal tax. Imagine what 1% of tax could do towards decades old city infrastructure.

Well they say the GST makes about $9 billion a year, right? So DAMN... Do I hear Slot Machines?? *ching ching ching ching ching *

Hamilton could REALLY use that, eh Steeltown? Wait... we know that 98.5% of that tax would go to Toronto anyway! So that leaves cities like Hamilton with what... $3/yr?

Makes me wonder... seeing as Toronto ships all it's needy ppl to Hamilton anyway. Hmm

nah, followed what dc said.

Well they say the GST makes about $9 billion a year, right? So DAMN... Do I hear Slot Machines?? *ching ching ching ching ching *

Hamilton could REALLY use that, eh Steeltown? Wait... we know that 98.5% of that tax would go to Toronto anyway! So that leaves cities like Hamilton with what... $3/yr?

Makes me wonder... seeing as Toronto ships all it's needy ppl to Hamilton anyway. Hmm

Hmm... could that be sour grapes?

I seriously doubt Hamilton would get stiffed despite the fact that Toronto does have a greater need.

What DC says is actually true. It just isn't well known as Hamilton isn't well known in the news anyways.

Problem with Hamilton is that over the last 3 years over 70% of increase welfare applicant came from the core City of Toronto to take advantage of Hamilton's social services benefit (low unemployment and cheaper housing). This is draining Hamilton's financial situation.

Currently each year Hamilton has to go to the province to ask for money to help us out. Hamilton's annual funding gap now stands at $25 million. That's how bad the situation is.

Whereas in Toronto it recently got the new Toronto Act and has tax pooling where the GTA puts their social services money into Toronto's (called GTA Equalization Formula). But in Hamilton only the City of Hamilton pays for the social services well the city is helping to pay for welfare from Burlington to Grimsby.

Also Hamilton is tied with Toronto with the highest poverty rate in Ontario but who is in a better financial situation? Certainly isn't Hamilton when the city has to go to the province to get bailed out each year.

If you would like to read a report on this situation click here http://www.communitystudy.ca/SSDSC.htm The report is called "Downloaded Dilemma: Background Report for the Social Services Downloading Steering Committee" It's a report that was recently done to get the Premier and Finance Minster attention during the next budget.

Newspaper article about the problem http://www.hamiltonspectator.com/NASApp/cs/ContentServer?pagename=hamilton/Layout/Article_PrintFriendly&c=Article&cid=1139376720529

"It was originally intended to be temporary"
No it wansn't....
KGB

I don't know about that, KGB... I seem to remember the
amount chosen was supposed to be a temporary figure...
I don't think it was intended to remain at that level.