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By here (anonymous) | Posted November 30, 2008 at 11:34:21
to correct
The 2% cut was implemented instead of a personal income tax cut. Most economist viewed the GST cut as mere politics whereas income tax cut would be beneficial. By cutting the GST in good economic times, they lowered the surplus and left themselves with little room to move. Standard economic theory also posits the need to leave taxes alone or even raise them in good times and cut them in bad. As they already cut taxes, limited their income, the Conservatives are in a bind which they demonstrated in their do-nothing economic statement.
The GST was created to replace the hidden Manufactures Sales Tax (13.5%)shifting the tax burden from the manufactures to the consumers. Mulroney claimed this would help increase exports. Speaking of financial ruin, Mulroney wasn't a good guardian of treasury either. Credit Chretian/Martin.
For the 15 years I've lived in Hamilton, I don't believe the NDP elected a mayor nor a majority of councilors. Sure there is a culture of corruption and sloppy rule but the Liberals/Conservatives have taken turns in that department.
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