GST – Finances of the Nation

The Conservative plan for a GST tax holiday in December should be expanded to help the recovery

Posted on August 25, 2021 by Michael Smart

Cutting the GST for a short time won’t do much to make life more affordable for families, and it will do nothing to beat inflation. But a GST holiday would get consumers spending more. That would give the economy a boost it might well need, as the recovery faces headwinds this fall from a possibly resurgent coronavirus and from economic shocks in the rest of the world. Read this articleThe Conservative plan for a GST tax holiday in December should be expanded to help the recovery→

The Case for a GST Cut as Fiscal Stimulus

Posted on March 30, 2021 by Michael Smart

The government should temporarily reduce the GST rate to two per cent from five per cent to support the economy until the recovery is well underway. My research shows that sales tax cuts have been passed onto consumers in the past, and they do lead to a surge in consumer demand. Read this articleThe Case for a GST Cut as Fiscal Stimulus→