Did you cash in on the two-month GST holiday over the holidays?
I think I saved about $500, and that was just on lattes. OK, I drink way too much coffee.
Seriously, I don’t think many of us noticed much of a difference in our pockets during the scheme, yes it was a scheme, to make it look like the government is actually making life more affordable for us plebes who pay the bills. I don’t think any of our spending habits change. Doing a little ciphering (and it’s always dangerous when I do some ciphering), you would have to spend $10,000 to actually save that 500 bucks. (For the record, I didn’t spend $10,000 on coffee over the holidays … rum maybe, but not coffee.)
That’s not to say the GST can’t be used to help Canadians.
As the Trump tariffs loom large over us all, we tend to forget it’s a two-way street. While Trump views tariffs as a way that country can become rich, leaders in this country have been pretty quiet about the money raised on this side of the border from the tariffs we will impose on U.S. goods.
Granted, I don’t think they should be viewed as a way for us to “get rich.” But there is no doubt Ottawa will be bringing in some cash if, and when, we impose tariffs on U.S. goods.
So, what do we do with that money? Ottawa has said it will be used to help Canadians impacted by the U.S. tariffs. As it should. But how?
Governments often come up with convoluted ways to “help” us. We don’t need a rebate program that is tied to an income tax refund that requires filling out a 47-page tax form asking us to multiply and divide the same number by Pi 500 times.
We will all need help when the tariffs come home to roost.
The quickest, easiest, and most far-reaching way to deliver that help is through the GST.
Cut the GST rate from five per cent to four per cent … or three per cent … or get rid of it altogether. We could call it the Gone Sales Tax.
Even a one or two per cent cut in the tax, on everything not just selected items, would actually help everyone in this country financially. Yes, it means less money in government coffers during what will be a tough time, but remember, we are going to be receiving money through those tariffs. Apply that money, even temporarily, to offset revenue lost by reducing the GST.
An across the board GST cut, or elimination, will help all of us … right now.