Thursday, July 31, 2008

What about the GST?

By now, everyone in the Canadian political blogging sphere has heard about the Liberal Green Shift plan. Many other "normal" Canadians have not. They are (not) enjoying the rainy weather.

We have heard from bloggers, pundits, Conservative and Liberal MPs alike. They attack the plan, defend the plan, or just attempt to explain it.

The Liberals call this plan revenue neutral. But it's not. According to their own document, the Liberals are going to spend or reserve 85 million dollars more then the carbon tax will raise.

Now, I realize that they are just estimates, and they can take that missing 85 million dollars out of the reserve fund, but why present it like that? Why not present it as $15,342 million in, $15,342 million out? And we all know that "reserve fund" really means "fund to bribe voters with non-budgeted expenses near election time".

Of course, there is one thing that everyone seems to be forgetting. What about the GST?

We (and the Liberals) know that this carbon tax will raise the cost of almost everything. It will for sure raise the cost of most carbon based fuels, and most electricity. What is charged on top of these things? Why, its our friend the GST.

Since the costs for things will go up, many more millions will be collect via the GST at the federal level. And millions more at the provincial level for that matter. Maybe this is why some Premiers are in agreement with this plan?

So I need to ask, what is Mr. Dion's plan to rebate the GST (and PST) back to the consumers to maintain the revenue neutral aspect of the plan?

3 comments:

Anonymous said...

The Green Shift has income tax cuts. YAY!!!

caz said...

How pathetically naive anon..as if you'll see any cuts. Dream on!

AnonymousCoward said...

caz, I think anon is being sarcastic :)