Check here for a Canadian Press story on the math behind the proposed GST cut and some other comments on the Harper proposal.
But get a load of this section, in particular:
*"For an average family of four with an income of $60,000 a year, this would mean about $400 less in taxes - savings they will see every time they go to the gas station, the shopping mall or a restaurant," Harper said.
"When the GST cut is fully implemented, the total benefit will, of course, be much greater."
Liberals argued that the first-year savings would be closer to $250, basing their claims on Statistics Canada numbers that indicate a typical family earning $60,000 makes taxable purchases worth about $25,000 a year.
Such a family would have to spend upwards of $40,000 in order to realize $400 in savings in the first year - a number that's not unreasonable, the Conservatives countered.*
Ok. A combined family income of $60, 000 a year making $40,000 in GST-related purchases a year. That leaves only $20, 000 to pay provincial, federal and municipal taxes, Canadian Pension Plan contributions and Employment Insurance premiums, a few bucks for the pension and maybe some cash for the kid's education. Surely I've left something out.
Even if I haven't, then at the end of the five years, once the Stephen Harper GST cut comes through, I'll have an extra $400 in cash. That's 0.6% of the gross annual income of this fictitious family.
Move over Donald Trump.
