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Monday, October 16, 2006

gst.

I only thought this was somewhat interesting...

McPherson promises to scrap GST (12:20 p.m.)
Alberta advantage would include an end to the six-per-cent federal tax

Jason Markusoff, edmontonjournal.com
Published: Monday, October 16, 2006

The “Alberta Advantage” should include an end to paying Goods and Services Tax in the province, says Conservative leadership hopeful Gary McPherson.


And even though it’s a federal sales tax, it can be done, he insisted today.

Instead of Albertans paying the six-per-cent GST at the cash register, the Alberta treasury would cover it all through additional cash transfers to Ottawa, according to McPherson’s plan.

“One of the best ways to maintain a vibrant economy in all sectors is to put more money in the pockets of consumers,” he said in a news release.
My question is: isn't this just paying Albertans contribution to the GST through Albertans taxes? So aren't Albertans still paying?

Instead of sending these tax dollars to Ottawa why not make an investment in Alberta itself? There are so many better things that the provincial government could do with that amount of taxpayers dollars. Premier Gary McPherson would be smarter to reinvest that money into Alberta's Post-Secondary Education system and fulfill the Tory Government's promise to give Alberta the most affordable tuition in Canada.

8 comments:

Anonymous said...

Exactly. Why are they not using the wealth of Alberta to invest in Alberta's future: Students. These are the people who will lead this province into the future. Are they (and the future) not worth the investment? I think the PSE system is far more important than how much money is in consumer hands.

Ed King said...

I wonder what he means when he says "additional cash transfers". What are the existing cash transfers? I've never heard of any. As far as I know, the cash transfers are currently going the other way: from Ottawa to the government of Alberta. And if he wants to put more money in people's pockets, shouldn't he suggest income tax cuts so people, you know, have more money in their pockets when they get their paycheque? Pretty strange.

Ed King said...

Correction: it is not clear wether MacPherson believes there are cash transfers to Ottawa or the remark was incorrectly attributed to him by the newspaper.

Anonymous said...

I am trying to think about who this might help, given that the province would use our flat rate income tax to pick up the tab...

Assuming that Mr. McPherson would not alter the provincial tax rules much, this would certainly help those with the smallest incomes; those who are off the provincial tax roles altogether.

However to help those in absolute poverty the most, it would be better for our federal government to remove the GST from the essentials required for living a normal life.

Doing it in a roundabout way, and in just Alberta, will not help much. Imagine the influx of "vacationing shoppers" from BC and Saskatchewan once we were GST-free.

Kuri said...

I was initially thinking this would be progressive (shifting from consumption tax to income tax) and then remembered we have a flat income tax rate anyway. OK, nevermind that.

I guess it will help the people who don't like to see their taxes everyday so they can think there aren't any. *shrug*

Anonymous said...

Hey Dave,

I'm just now starting to comment on blogs I read regularly. I've really enjoyed reading yours.

On the GST-idea, I prefer consumption taxes to income taxes (if we have to have taxes at all, mind you), so I'm not too keen on this plan. The best way to keep money in the pockets of consumers is to give them more money to take home. Then they can decide to spend it as they wish.

Not to mention the administrative nightmare that this would be....

Take Care,
Erin C.

ktr said...

dave,
that is enough. stop trying to confuse gary with the facts. *fingers in ears*

derek said...

A strong educated society will boost and grow your ecomony for a lot longer than any oil, natural gas, or bitumen ever could.