GST reduction A penny saved is a penny earned

[pussylicker]

Keep an eye on your reciepts.

I bought gas in Muskoka on saturday, and checked, and it was correct to 6%. Bought some other things, like paper and stuff, and tax was right amount. Sunday bought stuff at an Asian convenience store, and was charged 7% on everything. I complained, and was told she didn't know, and boss was away. Bought more gas, and reciept had GST still at 7%.

Was also told that the papers will be going up to make up the difference, so the SUN, STAR, GLOBE etc will stay the same final price.

So the moral of the story is that the Fedaral Gov't gives you a penny back, and someone else takes it. Same old story, like when they reduced EI premiums, and then jacked up CPP.

 

[Primetime21]

I bought my Sunday Sun yesterday and it was 2 cents cheaper, so it depends where you buy your products. I guess not all retailers have changed their system over, either that or just aren't going to.

 

[I_AmCdn]

And TTC & Taxis are all keeping the 1% in their pockets.

What did everyone think was going to happen? Did you really think that everyone would pass on the 1% savings.

Reminds me of moving to Calagry in 1980..."oh they don't have a sales tax out there...you'll save a bundle" all of my friends said. Yeah well guess what....housing was F(&*(king more expensive than 7% and my pay raise, food was 7% more, clothes were 7% more and back in Ontario there wasn't even a tax on kid's clothes.

Also reminds me of Ronald Reagan's VooDoo economic policies. His tax cut trickle down theories were a bust and under the Republicans the USA racked up the largest budget deficits and debt in history while the middle class took a shit kicking and the rich were rewarded with tax cuts. His deficit record stood until President Cheney took over and did the Reagan Redux thing.

People just don't seem to learn from history anymore.

 

[lickrolaine]

you mean we can't trust politicians,sheeese,what is the world coming to?

 

[Jade4u]

Let's see them do better than a penny. How about rent cannot be increased for the next 5 to 10 years.

 

[Keebler Elf]

And TTC & Taxis are all keeping the 1% in their pockets.

Inaccurate. Apparently taxis had some kind of fee/tax they pay increased by 1% which offsets the 1% GST cut. So no change.

Dunno about the TTC.

 

[monkeychan]

just came back from Canada's Wonderland, the taxes for food remains the same (totalling 15%)

 

[hot rod]

I saw one memo this week being circulated that although the GST reduction had been announced, it had not yet been passed by parliament, and therefore Revenue Canada says that vendors are still obligated to charge the 7% rate until the legislation passes commons. More backroom shenanigans.

 

[Papi Chulo]

I saw one memo this week being circulated that although the GST reduction had been announced, it had not yet been passed by parliament, and therefore Revenue Canada says that vendors are still obligated to charge the 7% rate until the legislation passes commons. More backroom shenanigans.

That is bullshit

The GST reduction was part of the 2006 federal budget. The budget was passed by parliament.


July 1, 2006 - Reduction in the Rate of the GST/HST
Info Sheets and Questions and Answers

Revised June 29, 2006

The Excise Tax Act (the ETA) imposes the goods and services tax/harmonized sales tax (GST/HST) on most goods and services consumed in Canada, at the rate of 7%, and in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador, at the rate of 15%. The legislative provisions announced in Budget 2006 (Bill C-13), which provide for the GST/HST rate reduction, have been enacted and are now law. These rates of tax will be reduced to 6% and 14%, effective July 1, 2006.

http://www.cra-arc.gc.ca/agency/budget/2006/gstrateqa-e.html

 

[tboy]

I hate to say I told you so but "I told you so..." this is no different than when the FST was abolished for the GST. (if you remember, the FST was a hidden tax that was paid to the government). When the FST was abolished we were told that all prices would drop by (I think it was 13% then) but nothing changed....All retailers just kept the prices the same and added the 7% at the cash register.....

 

[Papi Chulo]

I hate to say I told you so but "I told you so..." this is no different than when the FST was abolished for the GST. (if you remember, the FST was a hidden tax that was paid to the government). When the FST was abolished we were told that all prices would drop by (I think it was 13% then) but nothing changed....All retailers just kept the prices the same and added the 7% at the cash register.....

Actually, that is not true at all.

At the time the GST was implemented, I worked at a large retail chain. We had worked all weekend just before the GST came into effect, and reduced the prices on most goods in the store.

Not all items were taxed at the same level with the HST, some were not taxed at all, so the price on all goods could not drop by the same percentage.. but prices where I worked did go down.

The previous tax was a tax on manufactured goods, which created a playing field which was not level, making Canadian goods less competitive, internationally. A value added tax corrected this problem, and created much more revenue for the gov't as the tax was applied to a broader selection of goods, and now services.

 

[1HandInMyPocket]

That's what we get for voting in the Conservatives. Say what you want about the Liberals, but an Income Tax reduction would have put more money back into our pockets. Saw something on CTV just today about that. The GST reduction (as we all know) will only save us money on expensive items. So only the rich will benefit. While with the raise in Income Tax will then punish the lower income brackets.

 

[Papi Chulo]

That's what we get for voting in the Conservatives. Say what you want about the Liberals, but an Income Tax reduction would have put more money back into our pockets. Saw something on CTV just today about that. The GST reduction (as we all know) will only save us money on expensive items. So only the rich will benefit. While with the raise in Income Tax will then punish the lower income brackets.

Using your logic, I guess items & services which are not "expensive" have a GST at a higher rate than 6%?.. you are obviously blinded by your stupidity and hatred of the Conservatives

THis is not true since GST is 6% applied on expensive an inexpensive goods and services. Therefore on purchases of goods which are not "expensive", 1% is saved. Over the course of a year, that would add up pretty quick.

If you look after your pennies, the dollars will look after themselves.

btw, the Conservatives will have a majority in the next election.. with or without the seats in the GTA.

 

[tboy]

Papi, I also worked for a large retail chain and was part of a meeting where it was stated that additional profits were to be made by not adjusting the prices after the implementation of the GST. To my direct knowledge not ONE of the 400+ stores in the chain reduced their prices.

How do I have direct knowledge? Well I was involved in the stocking of the price tickets for the product homes. With 75000 products, some with multiple homes, we expected, and ordered in, sufficient tickets for each store (about 200000 tickets for each store) to a total of 80 million tickets. It took us 4 yrs to get rid of those 80 million tickets because we didn't sell ONE extra during the changeover.

I'm not saying this was true for ALL retailers but for those that I shopped at (and the one that I worked for) I didn't see ONE price reduction.

 

[LateComer]

I saved a penny on my Timmies double double.

 

[dreamer]

Using your logic, I guess items & services which are not "expensive" have a GST at a higher rate than 6%?.. ou are obviously blinded by your stupidity and hatred of the Conservatives

Personally I have no hatred for the conservatives and I have always stated that a 1% reduction in the GST does not make sense, or at least does not do what the conservatives state that it will.

It was just a political move to get elected, not that there is anything wrong with that

I have also stated that I am a liberal, however I am not blind to their scandals and they deserved to be turfed.

To me, your posts show a certain blindness.

 

[1HandInMyPocket]

THis is not true since GST is 6% applied on expensive an inexpensive goods and services. Therefore on purchases of goods which are not "expensive", 1% is saved. Over the course of a year, that would add up pretty quick.

so if i spend $25,000 in a year (which i don't) then 1% = $250, or one night at a strip club. My point was there is a lot of low income families who live paycheck to paycheck that would benefit more from a income tax reduction than an income tax raise. Yes $250 may help these families on groceries, but groceries are GST exempt, right?

It was just a political move to get elected, not that there is anything wrong with that

I have also stated that I am a liberal, however I am not blind to their scandals and they deserved to be turfed.

I like dreamer am also a Liberal and also not blind to their scandals, it's just too bad some of these MPs have ruined a Party. But greed is a human trait, give it enough time and the opportunity neither the Conservatives, nor NDP, or even the Green Party is immune

 

[pussylicker]

so if i spend $25,000 in a year (which i don't) then 1% = $250, or one night at a strip club. My point was there is a lot of low income families who live paycheck to paycheck that would benefit more from a income tax reduction than an income tax raise. Yes $250 may help these families on groceries, but groceries are GST exempt, right?

But chips and soft drinks aren't GST exempt, and low income families spend a higher percentage of their income on junk food, so they will save 1% of their junk food purchases.

 

[fearnoevil2005]

It's been well reported that the reduction will not be 'across the board'. Some jurisdictions such as the Parking Authority will not implement the change. Same goes for the gas stations. But if you buy a $700,000 home, you would save $7,000 - as one news reporter would put it

 

[dreamer]

so if i spend $25,000 in a year (which i don't) then 1% = $250, or one night at a strip club. My point was there is a lot of low income families who live paycheck to paycheck that would benefit more from a income tax reduction than an income tax raise. Yes $250 may help these families on groceries, but groceries are GST exempt, right?

Low income families will spend less than $25,000 per year so they will receive less than $250.

Here is another way to think about how to help low income families. Estimate how much tax is saved if there was a 1% reduction. Then do not actually reduce the tax but instead give it to those that you have identified as low income families through the income tax system.