Election Picture of the Day: The Conservative leader says his government would declare a one-month GST “ holiday ” each year for retail purchases made in December.
Canada’s Small Goods and Services Tax has faced difficulties in its 30 years of life. Brian Mulroney introduced it amid fierce opposition; Jean Chrétien promised (and failed) to revoke it; the Atlantic provinces and Ontario transformed it into something else; Stephen Harper reduced it from seven percent to five. Now, the new conservative leader, Erin O’Toole, wants to take her claws off during her busiest month. In a campaign promise that is potentially popular and certainly populist, O’Toole’s Tories would remove the GST every December, offering a five percent respite to holiday shoppers and, presumably, bargain hunters who buy everything in the last week. of the year. Rest would be applies only to in-store purchases at retail stores, which means that US-based online retailers won’t run into a windfall. But how much would this promise save Canadians? One PricewaterhouseCoopers report set the 2019 Canadian vacation spending at $ 1,593 per person. If we assume that that figure includes vacations and fancy meals, and is not limited to December (given that “holiday season” starts in, what, October these days?), A generous estimate could be $ 1,000 of taxable assets in December, of which five percent is $ 50, which isn’t much for a hypothetical buyer who spends $ 1,000 on loved ones that month. Of course, calculating how many voters will process the numbers on this promise is an impossible task. So is determining how many voters will lean blue because of the promise.
Check Macleans.ca every day of election week, as writer Michael Fraiman dissects a picture that tells a campaign story.
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