Slash This, Slash That.

One of the main issues so far in this federal election is tax cut. The Conservatives is proposing a cut on the GST, while the Liberals a personal income tax cut. It has been pointed out that this is an interesting exchange of positions with the Conservatives bought in the GST and the Liberals ran against it. The seller of the GST cut is arguing that it is going to be obvious saving and it is a cut equally benefiting all levels of society. In his programme Politics, Don Newman, Senior Parliamentary Editor for CBC News, insisted this point in front of a host of talking heads. It is shocking how simple-minded Newman was, even after guest after guest laid out the math showing it benefits the wealthy more than the poor as the wealthy spent far more. What no one pointed out in the programme is that basic groceries, public transportation, prescription drugs and rent are not covered by the GST. For low-income families, these items make up a major chunk of their expanses. As they are not GST taxable, they will not get any cheaper if there is a cut in GST. So, as the larger percentage of the lower-income families’ is spent on non-GST taxable items, a cut in GST will benefit them minimally. On the other hand, for a higher-income family buying a new 60” plasma TV, the benefit is quite substantial. Plus, it does not do me much good if I save 20 cents every time I shop at Safeway. It would do me a lot of good if I get 100, 200 dollars more on my refund check in May. If my vote were for sale, I would certainly go for a income tax cut.