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The GST cut isn't popular with voters? So they prefer a GST of 7% to one of 6%? Would they also prefer a rate of 8% to 7%? I doubt it.

Is the implication that of all possible GST rates, voters have a preference for 7%? Is this the endowment effect?

My take is that Canadians prefer a lower GST, but somehow see it as a cynical right-wing policy. Or they feel greedy for wanting it and therefore don't want to admit they like it.

I think what is meant by that statement is that Canadians aren't impressed with the GST cut. The savings tend to get gobbled up by retailers, especially in items that have fixed prices taxes in (street meat, vending machines, etc.).

I think many Canadians understand that it was a ploy when first proposed. Of course no one is going to say no to a tax cut, but just the same they realise that the savings from a GST cut are more imaginary than substantial, unless you're quite wealthy.

I'm curious what effect lowering CIT ates by 7 pp would have on the analysis you performed earlier contrasting various tax rates and levels of social spending.

this is why I worry about Mark Carney as BOC Governor- I don't have a good understanding of how much of the Torinomics he buys into. Do you?

Oh, I'm not too concerned about that; the Bank is pretty independent. Monetary policy as practiced at the Bank of Canada is by now pretty mechanical. And since the mechanism doesn't appear to be broke, I don't see him trying to fix it.

true enough, the inflation target does tend to enforce discipline.

Mr. Gordon

Strongly suggest you read Sheila Copps in the Sun a couple of days ago.

Quick question - which side were you on when the tax was introduced? I remember many economists, particularly labour and Liberal Party economists ranting about the GST being regressive, etc.?

Where they wrong?

And secondly, Mr. Gordon, your assertions about taxes and competitiveness is a joke. Admit it, their is no direct correlation between taxes and being competitive.

Why don't you just acknowledge the real reasons you don't like the Conservatives (and there are enough) and cut the tax nonsense because these cuts are brilliant.

please read the small print. He is not saying that nobody likes tax cuts, he is just saying that if you want to cut taxes, these are wrong taxes to cut. (Particularly as nobody will notice much, prices change so much anyway).

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