Applause for the reduction to GST from some politicians
By Bill Rea

The New Year opened with a break for consumers.

The Goods and Services Tax (GST) was cut from six to five per cent by the federal government.

This is the second cut that the government of Prime Minister Stephen Harper has made to the federal sales tax since it took office almost two years ago.

Not surprisingly, York - Simcoe MP Peter Van Loan was pleased to see the reduction.

"We're very pleased to be delivering on our commitment to cut the GST, thanks to a strong economy and good fiscal policy," he commented.

This second cut is two years ahead of schedule, Van Loan said, adding an important consideration in the riding is remembering some families have trouble making ends meet. "Cutting taxes is an important part of that," he observed.

The GST has now been cut by almost one-third since the Conservatives came to power, and there have been tax cuts in other areas on top of that. He pointed to reductions to income taxes, along with the Child Tax Benefit and the Sports and Fitness Tax Benefit.

These adjustments make "it easier for families to keep their kids in sports," he observed, or "help pay down that mortgage a little bit faster."

"Surprise, surprise," was the reaction of Oak Ridges - Markham MP Lui Temelkovski.

But he did say he wasn't very impressed with the cut. "I don't think it's good public policy," he remarked.

He pointed out Harper was on TV over the holidays, telling Canadians tough times might be ahead and they may have to live with less, yet he's taking steps that will benefit upper-income Canadians more. "You and I will pay just a penny less on our dollar," he observed.

Temelkovski also commented that the government is trying to make the savings to consumers sound substantial, but argued it's "meaningless."

"When it's spread among Canadians. it doesn't seem like very much," he remarked.

As well, Temelkovski wasn't convinced the government can afford the loss or revenue, suggesting Harper might be preparing Canadians for deficits in the coming year.

Provincial politicians agreed the reduction had its positive side.

"Any tax relief is always welcome," observed Oak Ridges - Markham MPP Helena Jaczek, but she also argued this is tax relief that benefits the wealthy. "It's tax relief, but not of a progressive kind."

Jaczek added Harper could do something more useful with his surpluses, such as helping Ontario meet its infrastructure needs.

"I think it will have a really significant effect," commented York - Simcoe MPP Julia Munro. "As a general principle, I would say lowering taxes is always a good thing."

She agreed the cut is only by one percentage point, but added when it's multiplied, it can add up to millions.

"It reduces the price of a car by one per cent," she declared. "It has a significant role to play."

Munro pointed out the government has indicated it can afford the reduction in revenue, and she said that's probably the case, given the surpluses the feds have been managing in the last two years. "It would seem like that is the right thing to do," she said.

She also observed there are concerns the American economy could be heading into recession, so this cut could help stimulate the economy here.