GST reduced 1%

[billy36]

The recently released Federal budget reduced the Federal Goods and Services Tax from 7 % to 6 %. This 1 % reduction will be effective July 1, 2006

[Altezza]

Uhhh....have you been living in a cave??

[dawnknee]

:repost:

[Speed_69]

Originally posted by Altezza
Uhhh....have you been living in a cave??
lmao, yes..yes he has haha

[benyl]

Originally posted by Altezza
Uhhh....have you been living in a cave??

Well, he technically he hasn't as the bill went for its third reading this week and was passed.

If the BQ voted against it, GST would still be 7%.

Funny thing was that the budget this year was passed with no vote at all.

[DeeK]

I heard about this a while back, didnt know that it had passed...
1% less GST... roxxor!

[2000_SI]

Yay!:clap:

[freakin]

The difference the average joe is going to see from this is minimal. It's the big players with huge transactions that this will benifit. This is basically a tax break for big businesses disguised as something nice for the general public. I'd rather see a plan that directly affects the low-middle income folks instead of losing revenue from businesses that could just trim a little off of their corporate paychecks.

Well, that and I now have to memorize the cost of my regular purchases again. :rofl:

[Altezza]

Originally posted by benyl


Well, he technically he hasn't as the bill went for its third reading this week and was passed.

If the BQ voted against it, GST would still be 7%.

Funny thing was that the budget this year was passed with no vote at all.


True as that may be, the BQ have stated since May 2nd that they support the (then) proposed budget. They have re-affirmed that support many times since then. Technically, yes, you are right the PQ could have fucked the budget implementation. After 3rd reading in the House, the bill went thru the Senate the other day. However, for all practical purposes, the general sentiment was that it was a done deal and rest was formalities.

[DeeK]

Originally posted by freakin
The difference the average joe is going to see from this is minimal. It's the big players with huge transactions that this will benifit. This is basically a tax break for big businesses disguised as something nice for the general public. I'd rather see a plan that directly affects the low-middle income folks instead of losing revenue from businesses that could just trim a little off of their corporate paychecks.

Well, that and I now have to memorize the cost of my regular purchases again. :rofl:

what are you talking about, its gonna affect everyone the same...

It's going to affect everyone by 1%!

Whether they spend 10 million or 10 dollars, its still 1%

[Altezza]

Originally posted by freakin
The difference the average joe is going to see from this is minimal.

This depends heavily where you are in your spending cycle. A GST cut will statistically favour very particular groups, namely those in their mid-late 20s and early 40s.

[boi-alien]

Originally posted by Altezza


This depends heavily where you are in your spending cycle. A GST cut will statistically favour very particular groups, namely those in their mid-late 20s and early 40s.

Further to this, GST is only charged to the END-USER only, corporations don't really get any advantage whatsoever. Bottom line, remitting 7% is the same as remitting 6% as it stands that money was never yours anyways. If you purchase goods from a supplier, you pay 6%, but you also charge 6% on the goods you sell. When it comes time that to remit your GST you deduct the amount of GST that you payed out from the amount of GST that you collected on behalf of GOC and remit the difference. As such, I really don't see how this is advantageous to corporations whatsoever. Bottom line, it's never the corporation's money, they don't get to keep it.

[freakin]

Originally posted by DeeK


what are you talking about, its gonna affect everyone the same...

It's going to affect everyone by 1%!

Whether they spend 10 million or 10 dollars, its still 1%

Exactly!

For someone who only spends $10, then I only save $0.10. Someone who spends $10,000,000 saves $100,000. It is proportional, and that is why you won't see much if any benifit and big companies will.

[freakin]

Originally posted by boi-alien


Further to this, GST is only charged to the END-USER only, corporations don't really get any advantage whatsoever. Bottom line, remitting 7% is the same as remitting 6% as it stands that money was never yours anyways. If you purchase goods from a supplier, you pay 6%, but you also charge 6% on the goods you sell. When it comes time that to remit your GST you deduct the amount of GST that you payed out from the amount of GST that you collected on behalf of GOC and remit the difference. As such, I really don't see how this is advantageous to corporations whatsoever. Bottom line, it's never the corporation's money, they don't get to keep it.

That's a good point, I never thought about it that way. There is markup on the goods produced and sold, so there is still a margin there. I forgot about the money being paid to purchase raw materials.

[WWJAI]

Originally posted by Altezza
Uhhh....have you been living in a cave??

:rofl: this has been known for months..

you oughta watch news more often.

[Seanith]

Originally posted by WWJAI


:rofl: this has been known for months..

you oughta watch news more often.

The point is it JUST GOT PASSED the other day. Before it was just proposed, so whether or not it would have been a sure thing was up in the air.

[WWJAI]

Originally posted by Seanith


The point is it JUST GOT PASSED the other day. Before it was just proposed, so whether or not it would have been a sure thing was up in the air.

aight..then my bad..i always thought it was gonna be effective July 1st, for sure..thats what the news made it seem like

[benyl]

Originally posted by freakin


Exactly!

For someone who only spends $10, then I only save $0.10. Someone who spends $10,000,000 saves $100,000. It is proportional, and that is why you won't see much if any benifit and big companies will.

It will never be fair if you keep that train of thought.

How about this example:

GST is removed.

Someone who spens $10 saves only 70 cents!
Someone who spens $10 million saves $700,000!

Is it less fair that the large company saves more money when there is no tax?

[dj_rice]

Thats why I havent purchased my vehicle yet..waiting til July 1:thumbsup:

[Xtrema]

Originally posted by freakin
The difference the average joe is going to see from this is minimal. It's the big players with huge transactions that this will benifit. This is basically a tax break for big businesses disguised as something nice for the general public. I'd rather see a plan that directly affects the low-middle income folks instead of losing revenue from businesses that could just trim a little off of their corporate paychecks.


It's time to whip this out again.



Suppose that every day 10 men go to a restaurant for dinner. The bill for all ten comes to $100. If it was paid the way we pay our taxes, the first four men would pay nothing; the fifth would pay $1; the sixth would pay $3; the seventh $7; the eighth $12; the ninth $18. The tenth man (the richest) would pay $59.

The 10 men ate dinner in the restaurant every day and seemed quite happy with the arrangement until the owner threw them a curve. Since you are all such good customers, he said, I'm going to reduce the cost of your daily meal by $20. Now dinner for the 10 only costs $80.

The first four are unaffected. They still eat for free. Can you figure out how to divvy up the $20 savings among the remaining six so that everyone gets his fair share? The men realize that $20 divided by 6 is $3.33, but if they subtract that from everybody's share, then the fifth man and the sixth man would end up being paid to eat their meal.

The restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same percentage, being sure to give each a break, and he proceeded to work out the amounts each should pay. And so now the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of $59.

Outside the restaurant, the men began to compare their savings. “I only got a dollar out of the $20,” complained the sixth man, pointing to the tenth, “and he got $7!” “Yeah, that's right,” exclaimed the fifth man. “I only saved a dollar, too. It's unfair that he got seven times more than me!”

“That's true,” shouted the seventh man. “Why should he get $7 back when I got only $2? The wealthy get all the breaks!” “Wait a minute,” yelled the first four men in unison. “We didn't get anything at all. The system exploits the poor.”

The nine men surrounded the tenth man and beat him up. The next night he didn't show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important. They were $52 short!

And that, boys, girls and college instructors, is how America's tax system works. The people who pay the highest taxes should get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table any more.

[SC2]

That is awesome xtrema :thumbsup:

[broken_legs]

Originally posted by Xtrema


It's time to whip this out again.




Employees (ie lower and Middle Class peeps) pay the highest tax rates on their money. Sure someone who makes over 130k (or whatever that last tax bracket is) will get taxed more than someone whos in the second bracket. But the person in the top bracket is still just an employee.

People get upset about the tax breaks for the RICH, not hi paid employees. The truly rich people are Business owners and investors who pay less taxes as a percentage than people who earn their income through being employed. Business owners and Investors become more wealthy because they can pay their taxes AFTER they pay their business expenses as opposed to us common people who get taxed first before we get our money.


But really thats how the system needs to work to encourage business and investment or else the economy would suck and there would be no businesses to hire all the employees.

[Weapon_R]

Originally posted by dj_rice
Thats why I havent purchased my vehicle yet..waiting til July 1:thumbsup:

Nearly every manufacturer will honor the 6% gst right now so you dont have to wait.

[Aleks]

Originally posted by Weapon_R


Nearly every manufacturer will honor the 6% gst right now so you dont have to wait.

yep

[FiveFreshFish]

What about those who qualify for the GST rebate? Will they get 1% less now?

[Seanith]

Originally posted by FiveFreshFish
What about those who qualify for the GST rebate? Will they get 1% less now?

Next year they will. This year is calculated according to last years tax return, so that amount will be unchanged.

[Xtrema]

Originally posted by broken_legs
People get upset about the tax breaks for the RICH, not hi paid employees. The truly rich people are Business owners and investors who pay less taxes as a percentage than people who earn their income through being employed. Business owners and Investors become more wealthy because they can pay their taxes AFTER they pay their business expenses as opposed to us common people who get taxed first before we get our money.


Dude, as employee,you do your job, get paid, go home. Worst come to worst, you lose your job and just find another one.

As business owners, you have to find busines, keep employee happy, make sure they're paid. And there is alway risk of going broke. It's way more than JUST doing your job. Sometime, doing your job still get you nothing when you own a business.

Just like anyting in this world, higher the risk, higher the possible pay out.

[broken_legs]

Originally posted by Xtrema


Dude, as employee,you do your job, get paid, go home. Worst come to worst, you lose your job and just find another one.

As business owners, you have to find busines, keep employee happy, make sure they're paid. And there is alway risk of going broke. It's way more than JUST doing your job. Sometime, doing your job still get you nothing when you own a business.

Just like anyting in this world, higher the risk, higher the possible pay out.

Alrighty

You put your tax story up in response to a comment by someone saying the tax breaks were for big businesses and not the little guy.

Your tax story, to me atleast, only describes how taxes work for employment income and thus, how taxes work for the little guy. There is nothing in that story about big business or RICH people.

If you're RICH (or a big business, or "big player") you put your money into investments and businesses, you don't receive employment income. When your income is from business and investments you pay less tax (as a percentage) than an employee pays on their employment income. So im not really sure who the guy paying 50 dollars for his dinner is supposed to be, thats all.

[Xtrema]

Originally posted by broken_legs
So im not really sure who the guy paying 50 dollars for his dinner is supposed to be, thats all.

The guys who is paying 50 dollars are the ones who invest in businesses that pay your salary. Sure he get all the benefits you don't (only 50% of captial gain are taxed vs 100% of employment income), but don't ever forget that they're the reason why you have a job.

Tax the uber rich too much, investment money will go elsewhere and unemployment rate goes up. And the problem get trickle down. Pure and simple.

[TrevorK]

Originally posted by freakin
Well, that and I now have to memorize the cost of my regular purchases again. :rofl:

Many places will readjust their prices accordingly.

Notice how at Tim's a Large Coffee is $1.50 - you think they'll leave it be at $1.48/9 for long?

[benyl]

yeah, I think most prices in the retail food business will remain the same if they included GST. Basically, the 1% reduction is just an easy way for retailers to raise their prices, without raising their prices.