Bombshell: PM Ignatieff may hike the GST in the future

In a one-on-one interview today with Citynews’ Richard Madan, Liberal leader Michael Ignatieff said that he won’t take a GST hike off the table in dealing with the economic crisis.

Madan: “On the tax side, is it time to boost up the GST to its former levels of 6%? Do we need to that? Do you support raising the GST?”

Ignatieff: “I won’t be drawn at the moment where Canadian taxpayers and consumers are struggling with their bills, jacking up GST doesn’t sound to me like the greatest idea. But, let me be clear here: If we are in a deep deficit in year 3 or 4 you can’t exclude tax increases to get us out. Canadians understand how bad deficits are. So I’m not going to take a GST hike off the table… later, I just think it would be a bad idea now, in the recession.”

Richard Madan has the video.



  • Crazy Mamma

    Heaven forbid they would actually think to decrease expenses!!!!!

    Government is a hungry machine that eats the taxpayer up and spits out their tired dry bones,,,deal with it folks your fodder for the spending machine,

  • time for carbon tax

    Well, which is it, do you want a deficit or do you want taxes to cover the deficit? Or do you think maybe you would rather have a different kind of tax? More income tax on poor people? Or a carbon tax? That's it! A carbon tax! Great idea with oil so cheap.

  • whymuslim
    CHRC: it's OK to say gays should be “beheaded”, Jews “spread corruption”, Hindus must “be killed”
    By Ezra Levant on December 17, 2008 2:15 AM | Permalink | Comments (34) | Trackback (1)

    The Canadian Human Rights Commission has rejected a human rights complaint filed against a radical Muslim imam who published an viciously bigoted book about gays, Jews, women, Christians, and even called for the murder of infidels.
    all are nothing except slander against muslim again using jewish conspiracy as he said that!!

    or we can say
    hindo and budism and aborignal atheism
    who not bleive god made this to again hit muslim
    in canada to responbile for what happend in world

    Jump to: navigation, search

    “Atheist ” redirects here. For the death metal band, see Atheist (band).
    Atheism, as an explicit position, can be either the affirmation of the nonexistence of gods,[1] or the rejection of theism.[2] It is also[3] defined more broadly as an absence of belief in deities, or nontheism.[4][5][6][7]
    Many self-described atheists are skeptical of all supernatural beings and cite a lack of empirical evidence for the existence of deities. Others argue for atheism on philosophical, social or historical grounds. Although many self-described atheists tend toward secular philosophies such as humanism[8] and naturalism,[9] there is no one ideology or set of behaviors to which all atheists adhere;[10] and some religions, such as Jainism and Buddhism, do not require belief in a personal god.
    The term atheism originated as a pejorative epithet applied to any person or belief in conflict with established religion.[11][12] With the spread of freethought, scientific skepticism, and criticism of religion, the term began to gather a more specific meaning and has been increasingly used as a self-description by atheists


    link that how mr. harper choose

    head of superior court in favor of conservative who hate muslim in general to never let any msulim won any case in canada easy

    conservative do not like multiculturims and muslim specifically and slander and lie alot about them

    harper’s wife paid so much to tories to open all blogs paid by conservatives to do not like muslim and balme anything to muslim religion and to them this is discriminatory statement and shaked hand only with ahmadieh muslim who 99% of muslim do not like them or not belived they are muslim too.
    As we know tehrie is some kind of conspiracy in some group of muslm was seen such as wahiby group who are too much and extremist mix it with culture they are not part of isalm do not allow woman to do not drive or not go to school or do not go out without their husband that is part of culture mix of wahabi group mostly are in seen in Ordo language muslim culture such as Indian and Pakistani and afaganstian and some group in Saudi arabi who mix anger with too much in mix criminal as revenge while we do not have revenge we have justice in islam laws. Plus put each person lable as criminal is discrimination too!! to proof islam is waht it shows in TV today in west!!

    Mix busiens and mix politic and mix ideas to put down individual also is discriminagtory realed to isalm !!
    There is so mnay personal and conspricay was seen since 2004 to 2008 in justice sysme in Canada mostly since 2006 to current time put down canadain muslim too

    Supreme Court appointments
    Harper chose the following jurists to be appointed as justices of the Supreme Court of Canada by the Governor General:
    • Marshall Rothstein (March 1, 2006 – present)
    In keeping with Harper's election promise to change the appointment process, Rothstein's appointment involved a review by a parliamentary committee, following his nomination by the Prime Minister. Rothstein had already been short-listed, with two other candidates, by a committee convened by Paul Martin's previous Liberal government, and he was Harper's choice. Harper then had Rothstein appear before an 'ad hoc', non-partisan committee of 12 Members of Parliament. This committee was not empowered to block the appointment, though, as had been called for by some members of Harper's Conservative Party.[119]
    On September 5, 2008 Harper nominated Justice Thomas Cromwell of Nova Scotia to fill the Supreme Court seat left vacant by the departure of Justice Michel Bastarache. By and large Cromwell's nomination has been well received, with many lauding the selection,[120][121] however dissent has been noted surrounding the nomination. First, Harper bypassed Parliament's Supreme Court selection panel which was supposed to produce a list of three candidates for him to chose from.[122] Second, Newfoundland Justice Minister Jerome Kennedy criticized the appointment, citing the Newfoundland government's belief that constitutional convention stipulates that a Newfoundlander should have been named to the Court in the rotation of Atlantic Canadian Supreme Court representation.[123]
    Marshall Rothstein
    Marshall E. Rothstein, QC (born December 25, 1940) is a Puisne Justice of the Supreme Court of Canada.
    In his capacity as a judge in the Supreme Court, he is one of the deputies to the Governor General.
    Born in Winnipeg, Manitoba, to Jewish immigrants from Eastern Europe, he received a Bachelor of Commerce degree in 1962 and a Bachelor of Laws degree in 1966 from the University of Manitoba where he also became an active brother of Sigma Alpha Mu Fraternity. He was called to the Bar of Manitoba in 1966, and would in 1979 be made a Queen's Counsel. Rothstein also married Sheila Dorfman in 1966; he and Dorfman, a Montreal native and family doctor, have four children, Ronald Rothstein (J.D., Valparaiso) an attorney in Chicago [1], Douglas Rothstein (M.B.A., Boston College), a business executive in Cambridge, MA[2], Tracey Rosenberg (M.D., State University of New York at Stony Brook), a physician in New York City[3] and Robert (Bo) Rothstein, an attorney in Vancouver[4].
    by hiring jewish judge in head of supeiror court tto let conservaitve and jewish like ezra levant said sinc 2006 any thing he wished for and anypicture to humuliate muslim in conspriacry

    and blogs such as below are under
    human right charge still court judge are not let
    them win so far while sinc Dec 5 so many jduge under reviwe by Ottawa to see theri qualification
    with more than 10000 to 20000 hit per day
    cheap and know all detail the way conservaive like to show to pulbic in agaisnt muslim
    as antimuslim so far by supprot of jduge so far and mr. harpre never respect muslim right so far

    or made teh fun of muslim

    research about all list of blogs in canda are all ssupoorted by antimsuim group in canada
    and see the rest

    Pages & Links
    Top 25 Blogs
    Dust My Broom

    Yoani Sanchez *

    Tory Diary (UK)

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    Hot Air

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    Ian King

    Euston Manifesto


    A Different Way of Thinking

    Liberal Conspiracy

    Terry Glavin


    Richard Dawkins

    Ayaan Hirsi Ali

    Christopher Hitchens

    David Aaronovitch

    Doug Saunders

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    Shire Network News

    Seth Godin


    Planet Atheism

    Join the Atheist Blogroll

    dinosaur on Top 25 Blogs
    Darcey on Bleak
    as we see how much poltician are abuse each otehr aand we see them as behaviour as model taht can
    not we can bleive tehm and agree tehy teach us how to behave in canada when we can see their debate and all abuse andinsult to each other

    next is when we see all hockey player who we think with broken teach and pucnh each otehr face while those hocky player are millionar we cannot belaive tehy did really for sport and good body and we can learn from them how to have good body with all assutl punch the face tehy must got charge for criminal to not give us bad influce in future
    and all big politican beahve not for power
    and big companyfor fight more money and greed and e elution teach among their employees to comete illegaly among each other
    power and money and bad behaviour is end of nothing as we see in public to learn from them i have not respcet for peopel who are not act fair with people and look for writing and harm people pround by put down muslim in all blogs unfairly
    since 2006 in canada
    we need good coopearion respect and behave right and not fiht for money power and abuse to destroy human right the end

  • David

    The Conservatives should have never reduced the GST. What a big mistake by an economist (Harper). If they wanted to reduce taxes it should have been a reduction in income tax.

  • Kelly Jamieson

    “Bombshell”? This is ridiculous. If the economy picks up we will need to have a progressive tax like GST increase to repay the debt generated from this CONSERVATIVE DEFICIT. The bondholders and banks need to be re payed. Are the Conservatives planning on gutting program spending or raising taxes?

  • Bombshell?

    Bombshell? Not sure how considering increasing taxes to cover essential services for Canadians is viewed as being a “bombshell” but guess if you are a tory attempting to make headlines out of nothing then you use words like bombshell whenever you can.

  • wilson

    Economists want more cuts to GST
    December 10, 2008
    By Julian Beltrame, THE CANADIAN PRESS

    OTTAWA – Could a third cut to the hated goods and services tax be just the elixir needed to revive Canada's economy?

    Economists generally panned the Stephen Harper government for twice trimming the GST in its first mandate, but that was partly because the cuts were made in good times.

    Now that the Bank of Canada has officially said the country has entered a recession, some economists are giving more respect to the idea once derided as “a political gimmick.”

    In a report to be released Thursday, Dale Orr of IHS Global Insight gives relatively high marks to a third reduction of the GST as a potential measure for the government when it introduces what Harper calls a “significant stimulus package” package in the Jan. 27 budget

    “The GST has some real good qualities as a form of fiscal stimulus,” he says. “It can be timely in its impact, it is targeted on consumption and only works if people buy things, and in theory you can remove it, although politically that can be problematic

  • Soccermom

    The deficit will balloon because of the LIBERALS AND THE NDP WITH THEIR COHORTS, THE BLOC demanding tens of billions in stimulus, or they'll vote the gov't down. We Conservatives have been screaming not to do any bailouts, etc.

    History will remember this as the Coalition of Idiots screaming for the billions.

  • Phil

    I would prefer to see a GST increase of 1% to prevent a deficit. I would also prefer a sales tax increase with a income tax decrease.

  • Timothy

    I wonder if he feels the same way about a green shift tax which he initially introduced, Dion initially rejected, and then adopted into their failed bid for a national campaign.

    Who has the hidden agenda here?

  • Liz J

    No surprise, Liberals love to tax and they sure love the GST although Chretien won a majority when he said he would get rid of the WHOLE GST. Turned out he lied, he didn't do it. He denied he said it even though he was caught on tape saying “it's gone”. Sheila Copps thought he meant it too and ran on getting rid of it. We all recall that fiasco, she won her seat, then resigned on principle to save face and ran to win her seat again.

    Ignatieff is an unknown quantity at this point and is in no way ready to govern the country at this time of economic instability. “Coalition if necessary but not necessarily a coalition”, what kind of gobbledygook is that?

    He has also stated he'd be going out “to smell the barns”. Suppose that means he feels he needs to go meet the rubes and hicks.

    BTW, why haven't we been hearing about the $54 billion the Liberals took from EI illegally? How did that play into their huge surpluses? The SC has given the government 12 months to return it.

  • Hughe

    Typical! Even a breath of liberal power and they start thinking about taxing the hell out of us!

  • bec

    This too shall pass, folks! This will be my 3rd time.
    Two of them under a Liberal Government and this one because of a Liberal Government…….overtaxing and all of that good stuff.

    They come in 10-15 year cycles so get those mattresses, full of cash and never participate in electing thieves.

  • AC

    He's being cagy but raising the GST sounds like a great idea in two or three years. Lowering it was one of the dumbest ideas this govt has had. It had 0 stimulus impact as most people didn't even notice it. If you want a tax cut raising the basic personal exemption on the income tax is a far better idea.

  • Gabby in QC

    What is this rant doing in a thread about a possible GST hike?
    Has someone been into too much eggnog?


    Re: the GST.
    It's amazing that the Liberals, who hated this tax when it was first introduced by Mulroney, and who vowed to repeal it as soon as they were back in power (1993) now love this tax so much. But then … Liberal principles and ideas shift like the wind. Little wonder the ill-fated Carbon Tax was called the Green Shift.

    When the GST was first introduced, many opponents called it “regressive” but I still maintain it's one of the best taxes a taxpayer has to deal with.
    The taxpayer cannot escape paying income taxes, capital gains taxes, property taxes, but the GST is the only tax one can avoid paying if one really wants to.
    Anyone who absolutely hates to pay the tax can avoid it altogether by not consuming certain goods.
    On the other hand, the bigger the amount of a purchase, the higher the tax. What could be more progressive than that?

    As I've said in another thread here, I would have preferred a two-tier GST: higher for certain luxury items, or for higher priced items.
    E.g., a million dollar house should carry a higher GST attached to it than a $200K house.
    I would also remove the GST entirely from “services.”

    I can understand the thinking behind lowering the GST, as it stimulates consumer spending, but on the other hand, let's face it, there are some government services Canadians are unlikely to ever give up, so the revenue to pay for those services has to come from somewhere.

    However, my comment is not an endorsement of Mutable Michael: “a GST hike if necessary, but not necessarily a GST hike.”

  • Adam M

    This is not a bombshell.
    A GST hike is the least of our worries.
    As someone who has worked full-time in retail for ten years believe me, changes to the GST make no difference to peoples' spending habits. No one, including the cashiers at my store who spend five hours a day adding up peoples' bills and applying tax to them, has any idea how much the GST is right now.
    In fact, when they're trying to calculate the price of something in their heads (this is in Ontario) they calculate for 15% tax instead of the actual 13% because 15% is easier to calculate.
    GST lowering or increasing is nothing to anyone outside the auto or housing industry.
    It does not help the poor, boost the economy or affect peoples' daily spending. Only a cut to income tax can do that because it literally and consistently puts more money in your pocket and it gives the same benefits to housing and auto people as a GST cut, but allows the benefits to be felt in all areas.
    The only people who care about a 1 or 2 per cent difference in the GST due so for ideological or partisan reasons.
    Usually both.
    The only thing that counts, the only real argument is to have the GST or eliminate it. The rest is just a waste of argument.

  • MaryT

    Where have we heard that expression before, let me be very clear= let me be perfectly clear about that=
    Has Paul Martin been reincarnated.

  • Werner Patels

    Don't take this as a defence of Iggy, but what's the deal with people peeing their pants over the GST?

    All respectable economists and conservatives, such as David Frum, agree that the future lies in consumption taxes, i.e., GST. In fact, in an ideal world, people would only pay consumption taxes but no income taxes at all (or only very little).

    Look at Germany and Angela Merkel. The minute she was elected a few years ago, she hiked Germany's GST up to almost 20%, and in some European countries, such as Austria, there is or used to be a 32% GST on cars, etc.

    Reducing the GST instead of providing substantial income tax relief for hardworking Canadians was a BIG mistake — especially in a country like ours where the average Canadian household loses 45% of its annual income to taxes (that rate should never exceed 20% at the very most!).

    By relying on consumption, rather than income, taxes, you'd give taxpayers control over the amount of tax they have to pay. Income taxes we can control only by working less (duh!), but consumption taxes, now there we'd all have full control. You want to pay less tax this year? Great, postpone the purchase of your big ticket times.

  • hollinm

    I think this is going to be the kind of semantics that we will get from the Igster all the time. Coalition may be necessary but not necessarily the coaltion. So now we have the GST if necessary but not necessarily the GST. I understand he may be hedging his options should he ever become PM. However, he and the Liberal party need to be clear on their position and not be wishy washy. Either he believes that consumption taxes are important and therefore need to be increased rather than reduced or not. Like all Liberals they are trying to play both sides against the middle. Chretien got to power by promising to eliminate the GST and never did it. Iggy is now playing the same game.

  • hollinm

    Obviously you have not seen Dale Orr, a reputable economist with Global Insights?) who says if you want immediate stimulus to the economy reduce the GST again temporarily for say a couple of years. That will help drive consumer demand. As one heavily taxed Canadian I will take a tax cut no matter where it comes from. As well, the poor benefit from a reduction in the GST because they pay little or no tax. Are you advocating lower taxes for the middle class and the rich while leaving the poor to wallow in their misery? If so shame on you.

  • hollinm

    Take a breath and face reality. This is not a Canadian made recession nor a Conservative deficit which you so dismissively suggest. Are you suggesting for one minute that the Liberals would have had surpluses of $30 billion in order to stimulate the economy and have not needed to go into deficit. If so then you need to return from the land of oz and face reality rather than spouting partisan rhetoric.

  • hollinm

    You are absolutely right. Harper is being blackmailed by the opposition. Watch when he announces the stimulus number. No matter how much it will not be enough or is targeted in the wrong areas blah, blah, blah. The used car salesman will be out there screaming bloody murder and the Igster will waffle back and forth.

  • hollinm

    I don't think the Supremes told the Feds to repay the EI surpluses but did tell them to fix the problem so that it doesn't happen again. The MSM were pretty quiet about the whole thing. If that had been a Conservative government we would have had panels of experts, academics, pundits and all the newspapers for days on end telling everybody how the Conservative government lied to Canadians and stole the EI surplus. Double standard. You bet!

  • hollinm

    Hello….. the basic personal exemption on the income tax is already being increased yearly. This has been part of the last two budgets of the Conservative government. Once again the GST while not a significant amount with ordinary purchases is insidious because it increases household costs for such things as gas, electricity and heating to name just a few. As well, reduction in the GST assists the poor proportionately more who pay little or no tax. I will take a tax cut no matter where it comes from. I'll leave it to the rest of you to argue that a tax cut is bad. By the way a personal tax cut will not amount to much more than a cut in the GST. Maybe $100.00 or $150.00 per year.

  • A Canadian

    Seems like a sound responisble canadian way making sure to balance economic and social needs as to not burden us taxpayers with interest on a debt that would cripple are revenues in the long term. Stop following the american way (by the way buried in debt) Stephen-we live in Canada.

  • hollinm

    So you want to save on the GST just postpone the purchase of big ticket items. Sound advice. Not likely if you want the economy to grow.
    What happens to the people at the bottom of the socio-economic scale who pay little or no tax. They will not benefit from a tax reduction but it will sure hurt their purchasing power if there is a consumption tax of 20% on virtually every good consumed.
    When you talk about a substantial income tax cut what are you talking about. Perhaps $100 or $150.00 per year. Is that going to change your life?
    Besides nobody trusts the government to raise the GST while lowering personal income taxes. Given our history we would probably get stuck with high personal income taxes and a high GST.

  • David

    It is remarkable to me how poorly Ignatieff is performing. There is a honeymoon period for all new leaders and he has been unable to exploit that. Ignatieff , at this time of economic uncertainty has been unable to send a single clear message on anything.

    Eventually he will be put on the defensive when he has to deal with all he has written in the years he lived abroad.Some of it his musings is very Pro-American. That is Ok by me but many of the Lib supporters will despise it.

    Ignatieff will soon be defined by the Cons. as an indecisive,indifferent man who is out of touch with the realities of the common person living in Canada. They may be right.

  • Liz J

    Mary T, there are signs we do have another Mr. Dithers “leading” the Liberals. It's quite understandable, he's feeling his way around as a relatively new politician and a long absent citizen of the Country.

    He's also in professorial mode, mulling over all the possibilities and tossing them out for others to help him decide.
    He can then let them float to see which way the wind blows. Liberals govern by wind power on all fronts.

  • tibi

    Ignatieff has been itching to raise the GST for some time. During the last election, in an address to Newmarket City Council, Ignatieff said:

    “Prime Minister Stephen Harper’s two cent GST cut crippled an important revenue stream and made it nearly impossible to properly fund infrastructure needs.”

    He's just another tax-and-spend socialist. He's also a guy who has has to worry about savings and investments in his life.

  • Jen

    EI premiums were used by the liberals to pay down the debt (which I doubt) which was legal according to the Supreme court; but what was illegal is that the Liberals and their cabinet ministers decided behind closed doors to raise the EI premiums instead of debating the matter in parliament.
    You are right, the media silence is deafening-they have something to hide.

    So what to do hollinm? go to the CBC REX MURPHY right now write into the comment box “Rex, why don't tell canadians what the liberals did during(mention years) with the EI funds premiums and how the liberals discussed behind closed doors to raise the EI premiums charges which the courts said was illegally done instead of going through in the HOC.”
    The courts now has added another burden onto the conservative party to clean up for the liberals.
    Do the same thing at ISSUES where the three stooges are.

  • Jonathan T

    Would you rather he say one thing and do something completely different later. Well, I suppose you would after all your guy touted set election dates in the 2006 campaign and a vow against deficit financing in the 2008 campaign.

  • Randy

    PMSH has actually cut the GST by almost 30%.

  • Gabby in QC

    OK, Stephen, so what are you doing to my comments? Where’s the one I posted late last night? Have I suddenly become “persona non grata” here?

  • dbo789

    Problem is, a “temporary” GST cut is kryptonite to a sitting government. Even if they say its only for a year or two, when they try to raise it again, people will blow blood vessels. Raising direct taxes such as the GST is enough to lose an election over.

  • MikeW

    Why is it the reflexive reaction of the left is always to raise taxes? Study after study, analysis by analysis demonstrates responsible tax cuts (a) increase consumers or corporations to spend, save, or invest & (b) a growing economy as a result , delivers increase tax dollars to Government.


    Modern day Internet journalism is all about gross exageration, words like “bombshell” “stunning” “jaw-dropping” “staggering”

  • G. McRae

    What are you talking about Adam? The poor pay little or don't pay anything at all in income taxes. An income tax will not help the poor. A GST cut will help everybody who consumes.

    I see your point about the “all or nothing” approach to the GST, but good luck on eliminating it entirely.



  • Liberal

    It just pains me to see how hysterical you've all become now that the Great Harpy has wrecked everything.

    You people are in for it…big time.

  • hollinm

    While I can't disagree with you the fact remains if it is sold to the country in a reasonable fashion they may agree that it is in the best interest of the country based on today's circumstances but it will need to be sold to the public and of course the opposition would need to buy into it as well. Otherwise they will try to make political hay when it is time to raise it again.

  • Tony

    Can’t you ever tell the truth. He said that he would consider a tax in 3 or 4 years if the deficit was still a problem. Where in his comments does he state that he would raise taxes to deal with the the current recession. Cons equal liars. How can anything you print be taken seriously.

  • Liz J

    Any of the Harper naysayers posting ere sure are in another world. If any one of them listened to former Bank of Canada Governor, David Dodge on MDL this evening they must have fainted outright. What Mr Dodge said is certainly in line with what our GREAT PM is doing so far.

    It's about time people got a grip on their biases and work together for the good of the country. We are seeing a bit of that between Mr Harper and Dalton McGuinty, Premier of Ontario. Time to smarten up and end the smart ass rhetoric.

    Kelly Jamieson, what ever are you talking about? Good grief.

  • Leasa

    Well, Chretien campaigned on abolishing the GST and what did he do? Added it to essentials like children's clothing, children's shoes,fast food and a whole host of other things. I think Iggy would pull a Paul Martin immediately if he gets power…health, the military, social programs etc. would all be once again gutted. If Flaherty pulled a Paul Martin today, he'd have surplus tomorrow. Liberal governments are painful government, and looking back at the ridiculous surpluses…I hope Flaherty and Harper stay where they are for a long, long time.

  • LogicallySpeaking

    “Coalition if necessary but not necessarily a coalition”, what kind of gobbledygook is that? “

    I'm still undecided on Ignatieff, so don't take this as a defense of the man, but if it isn't completely clear what is meant by his statement, that says far more about your understanding of the English language than about Ignatieff.

    Coalition if necessary = If Harper/Flaherty don't give offer a reasonable budget in January, than we will be forced to vote against it and rather than have an election, we will move forward with our plans for a coalition government.

    Not necessarily a coalition = We're going to listen to what the Conservatives have to offer before we make any decisions about pushing for a coalition government..

    I know politicians sounding this reasonable is a bit of a foreign concept, but seriously..

  • Pauli Ojala

    Statistics of the beneficial impact of Jewish population to the host country in terms of inventions, science and technology:

  • Pauli Ojala

    Statistics of the beneficial impact of Jewish population to the host country in terms of inventions, science and technology:

  • Bruce

    Wow! That sounds as good as the last bombshell during the election.

    Dion refuses to say he rules out a deficit. You guys made hay with it but who was being honest?

    From the Globe yesterday…

    Yesterday, Canada’s parliamentary budget watchdog, Kevin Page, separately released a memo estimating that a $30-billion stimulus package in 2009-2010 would lead to a deficit that surpassed $34-billion for that year. The last time Ottawa ran a deficit was 12 years ago, and the last one exceeding $30-billion was 1995-1996, before the former Liberal government balanced the books.

    PMSH may have to raise the GST too..

  • BCVoiceOfReason

    Tax increases to pay for Panic (unnecessary) Spending.

    1) CPC had way too much program spending 2006-2008. There is lots of room to save Tax payer dollars. In the last election the Liberals said they could find $30B savings in government spending to fund the Green Shift.

    2) In the global recession the CPC had a correct plan for Canada but communicated it poorly and now seem to be abandoning it.

    2a) Ontario has too high taxes and is now in manufacturing trouble. This will not be fixed by directed bailouts. After the big 3 auto bailouts how does the government turn down requests for R&D funding from the Toyota/Nissan plants that also indirectly employ the same 500,000 parts makers in southern Ontario and are now at a completive disadvantage? Cut taxes for all and if it is a viable to make cars in Ontario it will happen. If the US chooses (is forced to honour Obama’s $400M sell out to the UAW) to nationalize the auto industry is that something that Canada has to contribute to? Set an even playing field with lower taxes and the decrease in big 3 activity will be replaced with Japanese production moving North. What makes this worse in that Flaherty “told them so” and got labelled as not nice and now we have moved on.

    2b) Canada is in great financial position to weather the recession. After 66,000 Ontarians lost jobs in November Ontario unemployment rate moved from 7.1 % from 6.5. The 32-year average Canadian Unemployment rate is 8.5%. Across the western provinces the unemployment rate is below 5%. West of the Ontario border there is virtually no one wanting and able to work that doesn't have a job.

    2c) the $30B stimulus package focused on infrastructure is counterproductive- To get the western power grid built, fix the bridges, twin lane the TransCanada Highway we will need massive immigration of skilled labour. Canada is not the US and will need to be a lot harder hit if the DEMANDED stimulus packages are to be successful.

    3) By being pressured into reacting to the MSN/Lib/NDP fuelled panic with the $30B stimulus package the plan forward has been compromised. We are positioned for more tax and spend and social engineering projects. That Iggy is even talking about raising the GST is indication of our future.
    My big hope is that the 90% of the $30B deficit will be a GST cut and/or a cash dividend cheque to all Canadians so that we can pick the winners rather than having directed handouts to pet companies. I doubt that our Canadian bureaucrats/politicians will do better than Soviet central planners.

  • clownparty

    Didn't DeYawn say the same thing? He said he would consider raising the Grits Support Tory [GST] tax if elected. .

    Now Iggy says, ” So I’m not going to take a GST hike off the table… later, I just think it would be a bad idea now, in the recession.” There is a big differance here, DeYawn proposed to raise the GST while Iggy said he would raise the GST.

    The burden of taxes are on the middle-class, reducing their tax would help.

    Yet, I have an odd suggestion. With the billioms given to industry, why not instead give everybody who filed incomtaxes this year about $50,000 to spend on Canadiam made items [including housing]. This would increase spending, while encouraging industry to increase production. More production, more jobs which woould increase income to the government. Even at $50,000 that would still save billions and help stimulate growth of the economy better than any tax cut. They could also get more money by cutting funding to the Canadian Human Rights Comm. and the CBC.

    They should also raise the “charity” exemption to the same level as a “political” contribution – this would encourage giving to those who benefet from charity organizations.

  • Adam M

    The poor spend all their money. And they don’t get everything they need by doing it.
    A GST cut… say 2% of the no money that they have… still leaves them with no money because they are still going to have to spend whatever gain they get on basic essentials. And they will still be relying on food banks and government assistance after that.

    If you make $16 000 a year for example (pretty standard for someone with a 30-hour retail or cashier job) you are poor. You can’t live on your own, or afford to eat a healthy diet. I know, I have been in this position. And you still have to pay taxes.

    Even a 2%increase to your income (let’s say a GST cut can provide that. although it can’t) brings you up to a gross of $16 320-ish. That is if you assume that you spend your entire gross.

    When I lived on $25 000 a year I could only afford to live in a house in a crime-infested slum that makes headlines constantly for the extremely high rate that the buildings burn down. I could not afford to move out of that area or to live on my own or in fact move into a nicer area with only one roommate.

    I watched the way my other room mates struggled on about $10 000 – $16 000 and sometimes it made my stomach cringe.

    We did not own any cars or have any children. We were four single, public-transit taking people and we had to live in an over-crowded, fire trap of a building, across the street from a known crack house where the homeless would break into our house looking for food because they thought we were rich and they could see that we had beer in our kitchen. And we would have to decide whether the humane thing to do was to call the police or not.

    That’s how you can live in a Canadian city for 19 000.

    And we were all paying taxes at those incomes.

    Yes, the levels have changed in the past few years but the poor as we picture them and the poor as they really are in the 21st century (the working poor) are no longer the same thing.

    These poor people who aren’t paying taxes are destitute and have life-long challenges that may prevent them from ever being economically viable. That does not represent most poor people in Canada.

    When I was making $16 000 there was a cut to the GST. I still spent all my money before and after that. If you want to say that I was able to add cheese to my grocery list and therefore that was a stimulus to the economy I will say to you that you are thinking too small.

    That was not “help” to me.

    When you live pay check to pay check you don’t have the cash on hand to look at your finances as “a savings of $300. You can only see that you have say $400 for the next two weeks and that a certain portion has to go to your rent and bills (in the winter all of that pay check is going to rent and bills) and then you have to buy groceries and your bus pass. Forget going to a movie or buying your mom a birthday present.

    Believe me. There are hundreds of thousands (if not more) people in Canada paying taxes who are nevertheless poor.

    A 2% cut to consumption taxes does not help them. That’s $8.00 per pay check. You can’t see Quantum of Solace for that amount of money. You can graduate from apple juice in a tin can to apple juice in a plastic bottle for that amount of money.

    There’s nothing in a GST cut for the poor.

    The poor need a plan, not a tax cut.

    The GST is a percentage consumption tax and therefore it is of the most benefit to those who consume a lot. It is disproportionately advantageous to the rich more so than the poor.

    If you’re buying a car a GST cut is amazing.

    If you’re buying tea candles to try and make your house a little warmer because you can’t afford the heating bill a GST cut is nothing.