Lowering the GST is not a good idea

On the surface, lowering the GST looks like a good idea to many people but there are issues that are not obvious.

If the GST rate is lowered, those who get a GST rebate will get less.

A consumption tax catches everyone - including those who conspire to evade income tax by doing things like taking cash for work or goods "under the table". Yes, these crooks don't collect GST either, but when they go to spend their money in normal stores they pay it - and don't get a deduction (since they don't bother to register).

Personally, I'm in favour of keeping or raising the GST - as long as other taxes (income tax, corporate income tax) are lowered to offset.

Canada has to compete in the global economy - and lower income taxes (and better fiscal management by governments to compensate for lower revenues) are becoming the norm.

Likewise, we have to keep a lid on corporate taxes in order that our goods and services are competitive in the global market.

The best thing any candidate can tell me is that they will make better use of the money they get from me - recognize that I work hard to earn it and I want them to work hard when deciding what to spend it on. Don't give it away to corporate welfare bums, don't consider it theirs to do with what they want, etc. It is mine - they work for me, not the other way around.

Letter to Editor - Published Sunday, December 4, 2005 - Vancouver Province.