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Taxpayers Federation: GST Hike Bad for Canadians

February 9, 2010 6:15 AM | News

By Brian Schultz

The Canadian Taxpayers Federation slammed the idea of a hike in the GST on Monday.

The taxpayer watchdog said Liberal MP Gerard Kennedy recently went on national TV and speculated Canadians would be in favour of paying higher taxes.

“The federal government needs more tax revenue like Tiger Woods needs another girlfriend,” the CTF said in a news release.

Critics of the decrease in the GST from 7 percent to 6 percent in July 2006 and from 6 percent to 5 percent in January 2008, have said the cut has cost the federal government $12 billion in revenue, which should be going to stimulate the economy. Realistically, the number is more along the lines of $10 billion.

The CTF says raising the GST is a bad idea, and only supported by those who can afford to pay higher taxes, which is not the majority of Canadians.

“Increasing the GST will drive more tax avoidance and black market activity,” the CTF said.”

“A GST hike is neither a good way to spur job growth, nor is it a good way to balance the budget. It is, at least, an honest proposal out in the open. Too often politicians aren’t straight on tax issues. At least Mr. Kennedy is being honest about what he wants to do,” said Kevin Gaudet, Federal Director of the Canadian Taxpayers Federation.

Tags: Canada