Friday, April 07, 2006

GST Tax Cut In Canada but...will anybody notice?

While the Canadian Government makes a cut in the GST that will add up to an estimated $5 billion-dollar windfall when the sales tax is slashed from seven to six per cent, the
average household savings won't be life-changing. But buyers of
big-ticket items, stand to pocket
anywhere from a few hundred to a few thousand dollars.

But for the average consumer, will this make a difference?

With a savings
rate of negative 0.4 per cent chances are, most consumers will continue spending afterall with this tax cut, if you don't spend you don't benefit.

But will this tax cut really put more money in your pocket? Not likely. For someone to actually see $100.00 in savings they would have to spend $10,000.00.

So, while the same Party who created the GST is now making moves to repair some of the ill will caused by this regressive tax, they are doing nothing to give average Canadians a real tax break.

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