Harper Fires Chief Of Staff

This is an interesting story, I wonder why so much effort is going into this summer's remake of Harper? He made one press statement, that I am aware of, re: suggesting that GST be taken off of gasoline, but wasn't it the Conservative that brought us the GST in the first place? Now he calls the gov profiteers for keeping it on?! uhm

---
If I stand for my country today...will my country be here to stand for me tomorrow?

As I recall it was the Liberals that proposed the GST and the Conservatives campaigned against it and then when they were elected (Joe Who?) the tax was imposed. I could be wrong, it is hard to remember who had the punch lines with this pack of mentally challenged prostiticians.

I pretty distinctly remember it being Brian Mulroney (Brian, what??!) that brought it the GST. Of course that's ancient history, and a party later. As we've seen this party is closely aligned with the american branch of conservatism, so it's unsure their position on taxes.

It was a pretty common liberal complaint, and if you remember the infamous 'red book' of Chretien he specifically promised to dump the GST. We have no real way of knowing what Harper would do, I suspect that cash cow is far too desirable (after all, they'd have to re-introduce the hated 'manufacturer's tax') to get rid of. But really he's doing what opposition leaders would be expected to do, which is oppose government policy.

I wonder what his rank-and-file supporters at the Fraser Institute, champions of consumption taxes and disdainful of special exemptions.

CAP candidates, here's one for you: how about taking up the Fraser Institute cause (gasp): drop the GST to 1 or 2% and apply to *everything*, and that includes schoolbooks, coffins, gasoline and six-packs of donuts. It would also include military equipment and BROKERAGE FEES. Yes, that's right, remember the Mulroney era, when "hardline" conservatives were complaining about the highly complex and negotiated, "politicized" exemptions from GST? Well, guess which exemption was in there from the very start, with nary a complaint? If financial brokerage was not exempt, the rate could be MUCH lower. Hardliners, I'm not talking about taxing the principle amount of the investment (a tobin tax), just the commission amount (service fee) charged by the broker.

I called CCRA once to ask about GST on brokerage. The CCRA expert had to go ask someone and call me back. He was as suprised as anyone at the answer.

How about it Canada? Would you pay GST on your banking service charges if all those high volume day traders had to as well? How about if the rate could be lowered substantially?

If I'm wrong and this situation has changed, please advise!

It's been a long time, anybody have any links to a list of all the items exempt from GST? I vaguely remember when they were first bringing it in there were stories that high priced yachts would not be included as well as other high priced ticket items. The above idea seems sound, the trouble would be that it would directly affect mutual funds and RRSP's. I have no idea how many changes the average mutual fund makes in a year, but I would imagine its a fair number. And of course we know we can file this under "yet another good idea that won't see the light of day" folder.

It was Mulroney who brought in the GST, and then the Liberals campaigned agaisnt it, Sheila Copps said she would resign if it wasn't removed. She threatened to do so, but eventually was convinced to change her mind also.<br />
<br />
As for your suggestion to CAP, here is a link to what we are saying, 'eliminate GST"<br />
<a href="http://www.canadianactionparty.ca/PartyInfo/Policies.asp?A=12&B=1&C=0&D=0&Language=English">http://www.canadianactionparty.ca/PartyInfo/Policies.asp?A=12&B=1&C=0&D=0&Language=English</a><p>---<br>If I stand for my country today...will my country be here to stand for me tomorrow?

"The above idea seems sound, the trouble would be that it would directly affect mutual funds and RRSP's."

That's the standard line from conservative "yeah-but"'s too. The reason it doesn't hold up is the management fees and brokerage charges often have nothing whatsoever to do with anything, usually there's a food chain of financial types in there getting paid. Again, I'm not suggesting GST get applied to the value of the investment itself, just the service fees associated with the transaction. And again, these are relatively arbitrary, and it would allow the GST rate to be much, much lower. Even if the rate wasn't, a $1000 stock trade, if the brokerage is (say) 5%, would have a $50 brokerage fee, with GST of $3.50 (0.35% of the investment value). Many investors refuse to switch brokers despite rate variance which exceeds 7%.

Also, the GST is a VAT, so if, say, a mutual fund manager is charging the GST they would be entitled to offset some of it with GST paid to the broker next in the food chain.

... And of course we know we can file this under "yet another good idea that won't see the light of day" folder.

Of course. Merely a argument to tell your average Fraser Institute "scholar" to bend down and prepare for next time the "consumption taxes are fair, income taxes are not" agenda gets shopped thru the media.