Author Topic: Government Day-to-Day  (Read 13996 times)

0 Members and 0 Guests are viewing this topic.

Offline wilber

  • Moderator
  • Full Member
  • *****
  • Posts: 7476
Re: Government Day-to-Day
« Reply #360 on: May 13, 2020, 10:00:18 pm »
What if we have to raise the GST by 5 points to pay this off?  So what???   We're a rich country with a relatively low tax rate.  It may be the case that our standard of living is going to go down slightly...   People will have to take the bus more...  maybe only have one car per couple!!  Whoah!  How terrible will that be?? 

Every point of GST = $7billion to the treasury.  That might be a bit less if people spend less, or the gov't lowers taxes on lower income Canadians to compensate for the GST hike.  But, we could make up these emergency measures in a few short years if we actually made people pay a bit more tax.

GST isn't an entity of its own, for government to collect it, people need to have money to buy stuff.
If GDP is contracting, what are you going to tax?
"Never trust a man without a single redeeming vice" WSC