Another Tory Election Promise fulfilled: PM kicks off final GST cut at electronics store

Yesterday Prime Minister, Stephen Harper and Finance Minister, Jim Flaherty announced the reduction of the goods and service tax (GST) from six percent to five percent at an electronics store in Mississauga.

This was the same store where Harper, in 2005, while leader of the Opposition had promised Canadians that a Conservative government would reduce the GST from its then rate of seven percent to five percent by 2011. Today this reduction comes into effect, more than 3 years ahead of schedule.

Article from CTV: PM kicks off final GST cut at electronics store

What really irks me is the people who have been openly dismissive of this tax reduction.

Many critics and economists say that the GST cut is bad economics, and less effective than other tax cut options. Others believe the cut will disproportionately benefit wealthy people who make more expensive purchases.

When the GST was first introduced, many of these same critics were complaining about how much of a burden this tax would be on the poor. Well if this tax is a burden on the poor, then it would follow that a reduction of the same tax would be a relief on the poor, right? So how is this bad economics? How is having more money left in my pocket to save or spend on things I need bad economics? It is amazing how those critics of the government reverse their position to suit their needs!

What is really funny is that the same Liberal party that vowed to abolish this tax when they came into office never followed through on that promise and now have the gall to criticize the Conservative government for reducing the same tax. It does not make any sense.

What we need is more good government and sound economic policies from the Conservative government. Hopefully they will be given a mandate in the next federal elections to do just that.

Happy New Year everyone and best wishes for 2008!

Regards,

Tony