GST CUT MEANS SAVINGS FOR ORDINARY FAMILIES

January 7, 2006

Tax reduction of up to $500 on family minivan

NEW HAMBURG – Conservative leader Stephen Harper today used the example of a family van purchase to demonstrate how cutting the GST to 5% will benefit mainstream Canadian families.

As Harper and Wendy and Scott Wagler toured the Expressway Ford dealership in New Hamburg, a community in Wilmot Township, they discussed the potential savings to purchasers of a family minivan. A saving of between $400 and $500[1] would be enough to pay for an infant car seat, a new set of snow tires, or another family necessity.

“This tax cut will make a real difference to mainstream families – hardworking people who work harder and harder but still struggle to make ends meet,” Harper said.

“The GST is the only tax that every Canadian pays. The GST is a consumption tax, which has a disproportionate impact on Canadians of modest incomes. That’s why cutting the GST is so important,” he said.

Harper said that the election gives Canadians a clear choice, because Paul Martin will never cut the GST. Martin has repeatedly trivialized the GST cut by saying that it would save 50¢ on the price of a toaster.

“In fact, the initial 1% reduction in the GST will put $4.5 billion back in the pockets of ordinary Canadians,” Harper explained. “That’s a significant saving, money that is better spent by hard-working families than wasted by government.”

“It’s a different philosophy,” Harper said. “Some politicians see taxpayers’ money and decide to help themselves. We believe in giving that money back to Canadians.”

A government led by Harper will immediately cut the GST to 6%. The tax will be reduced further to 5%, within five years. (In New Brunswick, Newfoundland and Labrador, and Nova Scotia, the HST reduction will be the same: 1% right away, and a further 1% over five years.)

-30-