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Saturday, December 20, 2008

Up the GST

The new Liberal leader, Michael Ignatieff, said during an interview with CityTV News on Thursday that if he took power he would consider hiking the Goods and Services Tax (GST). The GST has been cut to 5 per cent from 7 per cent by Stephen Harper, when he was first elected prime minister.

Ignatieff said he would not hike the GST now because of the tough economic times, but that it might be necessary after a couple of ignatieffyears of budget deficits.

The Grits—while they were the Official Opposition—denounced the GST vociferously before its introduction in 1991. In fact, the Liberal-dominated Senate at that time refused to pass the tax into law, until then prime minister, Brian Mulroney, used a little-known constitutional provision to increase the number of senators by eight temporarily, thus giving the Progressive Conservatives a majority in the upper chamber.

quote-left-red-grey-bgLet me be clear here. If we are in a deep deficit in year three or four, you can't exclude tax increases to get us out.quote-right-red-grey-bg

– Michael Ignatieff

In response, the Liberal opposition launched a filibuster and further delayed the legislation.

Moreover, during the 1993 federal election campaign, Liberal Leader Jean Chrétien promised to repeal the GST.

As so often happens with the Grits, however, they kept the tax in place during the Chrétien and Martin terms in office and, in a complete about turn, just as vociferously denounced the reductions (two per cent) made by Prime Minister Harper’s government. Yes, Grits like having things both ways.

Now the hypocritical Grits have come full circle. The very tax that in 1990 they were prepared to trigger a constitutional crisis to defeat, they now say they plan to increase.

How can we believe anything these people tell us? Have they no shame at all?smleaf

6 comments — This is a moderated blog and comments will appear when approved. Please don’t resubmit if your comment doesn’t appear immediately, and please do not post material that is obscene, harassing, defamatory, or otherwise objectionable.

  1. Where do you get this stuff? He very clearly said he was not going to raise the GST and you say he is planning to raise the GST?

    He then said we have to consider all options to deal with Stephen Harper's massive deficit. We don't even know the true extent of Harper's mismanagement because he story keeps changing - from all deficits are bad no matter how bad the economy (Feb), to never a deficit (Oct to get elected), to $100M surplus (Nov 27), to inevitable (Dec 8) to possible depression (Dec 17). Talk about not being able to believe anything someone tells you.

    Deceivin' Stephen, a self-described "economist", and Deficit Jim, who fudged the books in Ontario, clearly just do not have a clue about what they are doing or what to do now.


  2. This has nothing at all to do with Stephen Harper, although I know you Grits want it to be.

    This is all about Grits campaigning against the GST and then against decreasing it, and then finally saying they will increase it.

    It really is that simple.

  3. Russ, your a partisan fool. Iggy never said what you attribute to him. Nice try.

    BTW, if Harper is going to ramp up spending by $30 billion how should that be covered? By increasing taxes now or handing this debt to our kids so they have to raise taxes to pay our debt?

  4. Since when is Ignatieff beholden to the fiscal positions of Chretien and Martin?

  5. I see, Anon, if you don’t read the papers then I’m a fool. Very intelligent.

    A quick Google search for “ignatieff gst” will show you what he said. But that will involve finding out the truth, not a pleasant experience for Grits.

  6. RE: Since when is Ignatieff beholden to the fiscal positions of Chretien and Martin?

    I thought we had a party system. Are you saying, Anon, that future Liberal leaders will ignore anything Ignatieff implements. If so, what is the point of voting for anything he plans to do?