Wednesday, January 14, 2009

How to cut taxes in the way that will best help the Canadian economy

I still find it difficult to believe that tax cuts would actually instigate consumer spending, but let's pretend for the purposes of this post that they will. Here's how to do it:

Eliminate the GST on everything that's made in Canada. Charge GST on everything else.

Nuances: 1. Currently GST is not charged on necessities. If there are necessities that are not available in made-in-Canada version. 2. There might be degrees of "Made in Canada", like how there's the MAPL system for cancon. For example, Fluevogs are designed by a Canadian but manufactured in Europe (and yes, I lose points for a) having the first idea that comes to mind be shoes, and b) for knowing offhand where they're made). If this happens with enough things to be significant, they could have a sliding scale based on how made in Canada they are.

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