Conservatives to reduce GST to 5% if elected ? | FerrariChat

Conservatives to reduce GST to 5% if elected ?

Discussion in 'Canada' started by Kds, Nov 23, 2005.

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  1. Kds

    Kds F1 World Champ

    May 1, 2003
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    Canada and Brasil...
    #1 Kds, Nov 23, 2005
    What does everyone think about this ? I don't want this to become a political thread please as there is a section for that.......I want it to be a discussion of the advantages/disadvantages of the proposal as it pertains to you personally and the business you either own or are involved in.

    In my business when you are writing a 6 figure check for a toy it is irrelevant in the big scheme of things sales related, I mean if you can afford $105K you could afford $107K......but.....the overall effect it has on the mentality of the consumer can be dramatic.

    I will keep about an extra $60,000 per annum in the bank or in inventory as a result of my annual GST'able expenditures being reduced 2%. My wife and I will also gain $2,000 a year on personal expenditures in our pockets as a result.

    There is no case in Canadian or US history where tax cuts have brought about an economic recession or calamitous situation.

    How would a reduction in the GST affect you and/or your business ?
     
  2. Ferrariguy2

    Ferrariguy2 F1 Rookie

    Apr 5, 2004
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    #2 Ferrariguy2, Nov 23, 2005
    I will (and always have) be voting Conservative. In Ontario, the combined sales tax (pst & gst) is 15%.... that is rediculous. The Chretien Liberals originally ran on a campaign to scrap the GST... did they ever follow though on that?? Of course not.
     
  3. Kds

    Kds F1 World Champ

    May 1, 2003
    10,994
    Canada and Brasil...
    #3 Kds, Nov 23, 2005
    But how would it affect you personally or your business if the GST dropped 2% ? In real numbers ?
     
  4. Ferrariguy2

    Ferrariguy2 F1 Rookie

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    #4 Ferrariguy2, Nov 23, 2005
    Well I would save 2% on everything I buy (other than groceries and other non-taxed items), add that up over a 1 year period, and it would amount to some savings. Savings that could be used for other purchases or investments (stock market, etc.). Basically anything you spend it on would be good for the economy in general.

    As for business, I am in the finance sector (stocks, bonds, venture capital), therefore I don't think the change would be too drastic,.. perhaps retail would benefit slightly - in theory people can afford 2% more (if thats how they choose to spend it).

    Either way, the less money in the hands of the Government the better IMHO.
     
  5. MS250

    MS250 Two Time F1 World Champ
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    #5 MS250, Nov 23, 2005
    I have to agree with Ryan, 2% net savings is actually closer to 3.5% on a gross on a family and a business. In those numbers you save on hydro, heating gas, car leases, even if the market absorbs some of the gains, they will post bigger profits which are taxed at a higher rate. As for the individual they could save or spend.

    I think it could save me and my family unit about $2,500 off the net when you factor everything. Thats not bad, pays for the fcar on the road for a year insurance, gas and bitty services. Ill take it.
     

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