Rubbish. "Rich households also benefit from zero-rating, so that from a social policy objective much of the associated tax expenditure is wasted on the rich," Smart's paper concludes."
Aye, and what percentage of the population of Canada is in the "Rich" category? That seems to me like a bias statement designed to stirr up people and make them want to "get back at" the rich. Rich households dont buy much more groceries than average jo households, going after everyone to get to "the rich" is not going to benifit us average jo's.
"There is some evidence that taxpayers respond negatively to highly visible sales taxes on day-to-day purchases like groceries, and they may not perceive a link between sales tax base-broadening and enhancement of income tax credits."
No kidding.
"Enhancement of income tax credits." Last time I checked, Revenue Canada was a big organization already. How many people do we pay to run the Tax system? So we're going to make money, by taxing your food, (which we know you MUST purchase,garunteed income, whooowhoo!!) and then paying a bunch more people to give it back to you in May (or June, or whenever we get around to sending you rebate out).
But wait! It will pay for "cut(ing) income taxes, fund social services, or both, or even to cut almost in half the 12-to 15 per cent Canadians pay in harmonized sales taxes in most provinces,". LIES! Your still paying the tax morons, only now you want it to come from food and other essentials! Fund social services, yes, because most of us are going to require them in order to continue eating!
Dont know about you guys, but a $120 grocery bill with more (some items are already taxed, I know)tax, all year, makes for a mighty lean year. Doesnt matter if you get it back in the spring, what happens when the truck blows up in November and you have to have a new vehicle to get to work? Oops, oh well, guess your walking till you get that cheque back.
"eliminating the set-asides such as medicines, books, financial services and especially food"
Sign me up! (Not)