Say ‘no’ to hiking GST, says reader

There is talk of increasing the GST–Goods and Services Tax by 1%. This makes my blood boil. The discussion seems to be that this will solve many problems, be they municipal or federal.

Who pays this tax? Basically it is you and me!

Let’s look into it.

Let us set up an imaginary business. We will buy and sell widgets.

When our sales reach $30,000 per year, we will have to apply to the federal government for a GST license and then start to charge GST on our widgets.

We start by figuring out what we pay in GST to be able to buy them.

There is the cost from the manufacturer, the shipping, which may be two of the big costs, plus others.

Let’s say that this cost is $5. We will pick this amount for easy figuring. Now there is a simple formula for the price to be added to the selling price. It is 5%. For easy figuring let’s say this will be $6.

When reporting period comes, we take the $6 we charged our customer and subtract the $5 cost which leaves us with an amount of $1 per widget.

We ask our bookkeeper how many widgets we have sold. We then multiply that number by $1 and remit to the federal government.

But you say — wait a minute. I have never bought a widget in my life.

Let’s use another example. Let’s say gas for the car, new shoes, a new lawn mower, a restaurant meal, the pen writing this letter, the list goes on and on and on and on.

So why am I upset?

Because, you and I are the only ones to pay it.

Busineses get all of the GST that they pay back and so they are firm supporters of this system.

Governments do not have to wrestle with a fair and just income tax system.

Whether you are a single parent struggling to make ends meet or a very well paid executive, that GST on the ordinary things we need to buy is the same.

Yes, there is a GST credit available at income tax time. This does not help at the moment of the purchase or you do not make enough money to file income tax papers but you or your children still need shoes.

Let your elected representative know how you feel.

Alice Williamson

Red Deer

Just Posted

Red Deer’s newest outdoor ice facility opens to the public this week

The speed skating oval at Setters Place at Great Chief Park will be open Dec. 17th

Yellow Vests protestors take to Red Deer streets

Trudeau government’s immigration and oil industry policies denounced at rally

Rebels lose to Medicine Hat Tigers, 4-1

Tigers break Rebels’ three-game winning streak

Exhibition explores the rich history and culture of Métis people

The exhibition is on display from Dec. 15th to March 10th at the Red Deer Museum + Art Gallery

2019 Hockey Alberta Provincial Championship host sites announced

A total of 39 Provincial Championships will be hosted across the province

Trudeau to make it harder for future PM to reverse Senate reforms

Of the 105 current senators, 54 are now independents who have banded together in Independent Senators’ Group

Trudeau lashes out at Conservatives over migration “misinformation”

Warning against the “dangers of populism,” Trudeau says using immigration as a wedge political issue puts Canada’s future at risk.

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

Todd Hickling gathered donations and used gear to remove the cost barrier for kids to play hockey.

Canada’s ambassador meets with second detainee in China

Global Affairs says John McCallum, Canada’s ambassador to China, met with Spavor Sunday

‘They’re coming:’ Flying cars may appear in urban skies by 2023

Air taxis will number 15,000 and become a global market worth $32 billion by 2035

World Sikh Organization demands Canada prove Sikh extremism is a threat

Sikh community says this is first time such extremism has been mentioned in federal terror-threat assessment

Light at the end of the tunnel for UN climate talks

Meeting in Katowice was meant to finalize how countries report their emissions of greenhouses gases

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Most Read