While the Conservatives plan to roll back the tax cuts the Liberals introduced before the election, they do not plan to, and cannot, implement the GST cut probably until 2007. So while you and I will get our tax cut for 2005 we may face higher taxes in 2006 without a GST cut until a year after that.
Don't expect to get those promised tax cuts right away
But there's a problem with lowering the GST rate right away.The first income tax reductions announced by the Liberals have already passed into law. The Canada Revenue Agency has sent out millions of tax forms, incorporating the changes for the 2005 tax year."Can Harper change the GST rate midway through 2006?" Finn Poschmann, associate research director for the C.D. Howe Institute in Toronto, asks. "It's unlikely. He may propose looking at it in 2007 instead."The delay makes sense. With the Liberals' income tax measures in place for the first year, the Conservatives may not have the revenue needed to pay for their GST promise.
Which is why the Harper government has been deliberately vague on all of its economic promises, Flaherty promises federal budget after House resumes, except of course the July 1st start for their baby bonus, which is a sop to distract us from the fact they are going to be taxing us in order to pay for their GST cut.
For a good article on how the Tax Cut Tories will become the Tax Canadians "to pay for our promises " Tories see this progressive bloggers take on it: Hey Harper, get your hands out of my pocket!
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