Friday, June 30, 2006

The GST and socialists

Some are complaining that the GST drop that's taking effect July 1st (tomorrow) won't make much difference. Oh really?

Sure, you probably won't save much on a cup of coffee, 1 or 2 cents. But if you had 365 of them, hey, that's about $6 - 7 bucks! Yeah, not much, but it's more of YOUR money. On a new car, that's $200-400 smackers. A new furniture set, that's $10-20.

Some say that most business won't change their prices, instead pocketing that 1% difference.

As much as I wish they didn't, okay, so what? That money is now going into the business and the economy, meaning, perhaps that some employees might get a 1% raise or more in their bonus. For a small business whose revenues are, let's say, $1 million--that's $10,000. Not a bad bonus for some of the employees, you think?

But leave it to socialists to think that your money is best served in the government. We all know too well how efficient and smart the government is in spending taxpayer dollars. Businesses and individuals can't be trusted to spend money wisely. Families can't be trusted to take care of their own kids.

So with this 1% GST cut, I'm just glad I get to save a few cents on beer and popcorn.

Update: Now I'm hearing rumours that certain provincial gov'ts might bump up their sales tax a point. Fiscal imbalance solved? Uh, no. Taxpayer still screwed.

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