Day After 1% GST or Tax CUT, Who Is Robbing Whom?

(Deepak Sarkar, 4/6/2006, www.kolki.com)

 

[Abstract: Political conservatives can hardly balance budget without economic austerity because their economic policy is all about looting either citizens cutting services while increasing fees or attacking a foreign country for instant resource gain since the Trojan War! If we focus our attention on Canada, the current conservative government inherited huge budget surplus (public money) which they gave away to rich as tax/GST cuts as well as empowered Queen’s Army (RCMP) and Covert Intelligence (CSIS) for fighting in Afghanistan, Libya, Syria and Africa – Missing $3 billion still not investigated – as most students in Canada compromise Lunch and Chastity for supporting ever increasing Tuitions and Fees and many working citizens live on coupons and sales buying otherwise not so healthy family food.] 

 

As some Canadian politicians think most Canadians are dying for 1% GST cut, let us see few practical examples who gains most day after 1% GST cut.

 

  1. A minimum wage employee goes to McDonald ($4) for breakfast and pizza hut ($4) for lunch (Saves 1% GST on $8 = 8 cents)

 

  1. A low income employee have Chinese buffet family dinner ($40) (Saves 40 cents)

 

  1. A middle income family buy a new car for $25000 (Saves $250)

 

  1. An upper income family throw a party in a big hotel $100,000 (Saves $1000)

 

  1. A millionaire family buy a 2 million dollar home (Saves $20,000)

 

  1. A  billionaire buys a 20 million dollar yacht (Saves $200,000)

 

Now as obvious richer the person is also gaining more from GST cut while Government loses revenue and poor to middle income people would eventually end up paying for the loss as fees and increase in tuition and local taxes! Why it is nothing but politics of greed!

 

Same thing happens for the stock market. A person who can own only few Stocks watch helplessly as his/her stock loses the value. The commission to sale already losing stocks and buy new uncertain stocks make it impossible to make any money in the market. So to poor making money in the stock market is even worse than the chance of winning lottery!

 

While a rich person can always play the game safely and earn huge sum of money even from a subtle change in stock value since they own in millions, paying negligible commission/fee! 

 

The question is who is robbing whom? Remember that old saying ‘Robbing Peter to Pay Paul’! Who is Peter and who is Paul!  Isn’t it obvious 1% GST cut is robbing ‘We the people’ to pay ‘The Rich’ – just help them be richer, richest! That also explains why the ‘Tough on Crime’ slogan accompanies Tax Cuts!

 

Author: Deepak Sarkar, 844 Royal Oak Ave, Victoria,  BC V8X 3T2, Canada; E-mail: kolki@kolki.com; Poetry & Peace Web Site: www.kolki.com