Cancelling the GST for two months on a few items.

We all hope the majority of Cucknadians will learn for their own sake. Not confident tho.

Quote from: Lokmar on November 29, 2024, 09:38:25 PMWe all hope the majority of Cucknadians will learn for their own sake. Not confident tho.

They will. My husband and I are going to vote at the High Commission of Canada in Singapore.

Quote from: Herman on November 29, 2024, 08:33:23 PMCancelling the GST for two months on a few items.

If you eat real food (no junk food) you don't benefit for 2 months. This just encourages unhealthy choices at a time of the year people are going to do that anyway.

A temporary reprieve on fattening foods and alcohol does not have any long term benefits for the economy. It does not offer much in the short term either.

The hidden costs of feds' food tax holiday
While the GST/HST holiday might seem like a timely relief, it risks creating long-term instability

It's official. Starting Dec. 14, the federal government's two-month GST/HST holiday will temporarily reduce the tax to 0%, offering Canadians a reprieve until Feb. 15.


While this initiative appears to be a gift for consumers during the holiday season, it comes with unintended consequences that could harm consumers, retailers, and the broader economy.

Under this policy, provinces with standalone provincial sales taxes (PST) — such as British Columbia (7%), Saskatchewan (6%), Manitoba (7%), and Quebec (9.975%) — will continue to apply these rates. Meanwhile, provinces using the harmonized sales tax (HST) — Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, and Ontario — will see the total tax rate on eligible items drop to 0%. Alberta, which already lacks a PST, will remain tax-free.

Minimal Savings at the Grocery Store
For the average consumer, grocery savings over the two-month period are estimated at just $5. While this amount is negligible for most households, it creates a significant burden for grocers. Implementing system updates to reflect the tax holiday for more than 4,000 products on average will result in logistical headaches and additional costs. Retailers, already operating on slim margins, will likely feel the strain.

Restaurants Reap the Rewards
The benefits are much more pronounced for restaurants. Since the average Canadian spends roughly $180 per month dining out, families could save between $60 and $90 over two months. For restaurant operators, this measure could provide a much-needed boost, as taxes normally apply to all menu items.

However, regional disparities in tax rates could lead to unintended consequences. Quebecers, for example, may cross the border to dine in Ontario or New Brunswick, where they can save nearly 10% in taxes. This puts Quebec restaurant owners at a disadvantage. While interprovincial shopping migration may be less pronounced in Western Canada, these inconsistencies create unnecessary regional tensions.

Inflationary Risks and Market Instability
Taxes, particularly those tied to food, leave lasting effects. Whether introduced or eliminated, they alter market dynamics and often disadvantage consumers. The temporary nature of this tax holiday increases the likelihood of opportunistic pricing, leaving Canadians paying higher prices long after the tax is reinstated.

A Missed Opportunity
Instead of implementing this temporary tax holiday, the federal government could have eliminated the GST on food permanently. A permanent measure would shield consumers from market instability triggered by policy reversals and reinforce food affordability as a critical aspect of Canada's social safety net.

While the GST/HST holiday might seem like a timely relief, it risks creating long-term instability. Food pricing is a delicate balance, and every policy shift has ripple effects across the supply chain. For many Canadians, the costs of this measure could outweigh the benefits, leaving them worse off in the long run.
https://torontosun.com/opinion/columnists/charlebois-the-hidden-costs-of-feds-food-tax-holiday

Drop the dang carbon tax for Christ sake.

Typical socialist politics.  Bribe the voters before the no confidence motion.

Quote from: Prof Emeritus at Fawk U on November 30, 2024, 09:00:59 PMTypical socialist politics.  Bribe the voters before the no confidence motion.

Justine is on borrowed political time. He is getting desperate.

There is no support in Canada for Justine's vision.