"Each percentage point of GST is estimated to return around $5 billion, annually. In 2006, the government reduced the rate from 7 per cent to 6 per cent and, in 2008, from 6 per cent to 5 per cent. This translates into a revenue loss of $5 billion in each of 2007 and 2008, and $10 billion in each of 2009, 2010, 2011 and 2012. So what did you and I get out of this $50 billion in “savings”?
"At roughly 33 million to 34 million, that meant every Canadian realized, on average, about $150 in GST savings in 2007 and 2008 — roughly 41 cents a day, or the HST levy on a $3 chocolate bar. Since 2009, those savings have increased to 82 cents a day, or the HST on two chocolate bars. ...
"... in 2011 Canada spent $24.7 billion on defence. That was an increase of about $8 billion since 2006 and more than $10 billion since the start of 2001. An annual expenditure of $24 billion amounts to an expenditure in excess of $700 million for each and every Canadian in a single 12-month period. ...
"Federal corporate income tax brought in $30 billion dollars in 2012. At the 2004 rate, that would have been $42 billion. Repatriating the lost corporate tax revenues from the dead money reserves, brings us $12 billion. Restoring the GST to 7 per cent (at a cost of 84 cents each, a day) — $10 billion. Rolling back defence spending to 2006 levels — $8 billion. Altogether, that gives us an annual revenue increase of $30 billion. Given that the deficit for 2012 is estimated to be $26 billion, we cannot only balance the books this year, but do so with $4 billion to spare.
"Yes, Virginia, we can afford what we need. And if we can afford it, so can our government."
Full article: Canadian deficits are a distribution problem, not a wealth problem (Toronto Star).
Pat Steenberg is a former executive director of KAIROS, and a former vice-president of the Canadian Council on Social Development.
