Saturday, February 09, 2008

The Stephen Harper Tax (SHT)

For almost a year now the mayors of Canada's municipalities, lead by Toronto Mayor David Miller have asked the federal government to devote one cent of the GST to Canadas cities. Prime Minister Stephen Harper has staunchly ignored the request and electing Stephen Dion won't help.

Since this call first went out though Stephen Harper has indicated that the federal government does not need all of the GST, cutting it by 2 cents in 2 years. I don't know about any of you, but the 2 cent GST cut has affected me not at all. I don't remember, at any point, looking at a receipt and saying 'thank god for that GST cut.'

So perhaps all we need is to rearrange the tax. I suggest that the provinces put in place a new 2% tax on goods and services. It would act as a local sales tax - with proceeds staying in the city, town, village or rural area where the purchase was made. It would then be up to local officials to decide how to spend the money.

It was estimated when the one cent campaign was launched that getting one cent would raise $400 million for Toronto and 5 billion for municipalities across Canada. So, the two cent tax would be roughly double that.

If the Federal Government doesn't need it, and no one has noticed the cut I think it would be an excellent way to get the 'one cent for cities' without federal support. No one likes to introduce a 'new tax' but this isn't really a new tax. It is an old tax reapplied to solve problems that the federal government has abdicated. Just to drive the point home I would suggest that it be permanently labeled the SHT or Stephen Harper Tax.

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