In principle, I agree with removal of a VAT; though, I would want it to be removed permanently (or, at least, permanently exempting more goods, eg food and other necessities) rather than temporarily. I personally see little benefit to the citizen from a VAT. The only real positive, and it’s really quite a low bar imo, is that it can help account for tax-loopholes [1].
The roll out of this announcement was very poorly done, imo. It seems that the federal government didn’t consult with any of the premiers beforehand (many of whom are now complaining, and rightly so, imo, of lost revenues due to the HST) [2]. And it seems to be causing more of a headache to shop owners [3][4] which may offset any possible increase in profits over such a short period.
I disagree with the $250 payout. While I think that it will help some people in the short term, it is far from an actual solution, and only serves to increase Canada’s national debt — this is likely also compounded by the fact that Canada is temporarily lowering its tax revenue.
§“Advantages and Disadvantages of Vats”. §“Advantages”.
A VAT Closes Tax Loopholes: Proponents argue that a VAT would not only greatly simplify the complex federal tax code and increase the efficiency of the Internal Revenue Service (IRS) but also make it much more difficult to avoid paying taxes. A VAT would collect revenue on all goods sold in the United States, including online purchases.
“Trudeau’s GST holiday gets mixed response from provinces”. “CBC News: The National”. YouTube. Published: 2024-11-22. Accessed: 2024-11-26T00:13Z. https://www.youtube.com/watch?v=U2XLo-JpiUg.
“Businesses, residents in Ottawa provided mixed reactions to Trudeau’s GST tax relief”. CTV News. YouTube. Published: 2024-11-23. Accessed: 2024-11-26T00:20Z. https://www.youtube.com/watch?v=UIZKYb45XVM.
“Trudeau’s GST tax break may cause more work than it’s worth, says shop owner”. CTV News. YouTube. Published: 2024-11-22. Accessed: 2024-11-26T00:20Z. https://www.youtube.com/watch?v=NKWSMkmA8io.
In principle, I agree with removal of a VAT; though, I would want it to be removed permanently (or, at least, permanently exempting more goods, eg food and other necessities) rather than temporarily. I personally see little benefit to the citizen from a VAT. The only real positive, and it’s really quite a low bar imo, is that it can help account for tax-loopholes [1].
The roll out of this announcement was very poorly done, imo. It seems that the federal government didn’t consult with any of the premiers beforehand (many of whom are now complaining, and rightly so, imo, of lost revenues due to the HST) [2]. And it seems to be causing more of a headache to shop owners [3][4] which may offset any possible increase in profits over such a short period.
I disagree with the $250 payout. While I think that it will help some people in the short term, it is far from an actual solution, and only serves to increase Canada’s national debt — this is likely also compounded by the fact that Canada is temporarily lowering its tax revenue.
References