There's not much more one can say about a story like this:
Federal Tories who threatened to force an election over the Senate's protracted study of a crime bill now want the upper chamber to play ball with them in killing an opposition bill that would provide tax relief for parents saving for their children's education.
The turn-about was suggested yesterday as a way for the Conservative government to block a bill that it says will cost the treasury upward of $1-billion a year.
“There's some reasonably minded senators that will look at this and say ‘this is not good news for taxpayers,' ” said MP Ted Menzies, the parliamentary secretary to Finance Minister Jim Flaherty.
“I'm hoping to talk to the senators and that they will use common sense, as they're quite capable of doing.”
. . .
“This really lays bare for all to see what kind of government we're dealing with,” he said. “Can you imagine if they had a majority?”
Mr. McTeague said that if the Conservatives want to turn against an issue of vital importance to middle-class Canadians, they do so at their own peril. “I believe they really ought to rethink this,” Mr. McTeague said. “It's a direct slap in the face to the middle class.”
Only weeks ago, Prime Minister Stephen Harper gave the Senate an ultimatum of March 1 for the passage of a crime bill that he said had been undemocratically held up. The government forced a vote of confidence in the House of Commons on the matter, which, if it lost, would have meant an election. The government won the vote and the Senate passed the bill in time.
This is really quite an enjoyable piece of political theatre. Not only is it a complete flip-flop of their very recent position on the Senate's powers, but another in the long line of examples that they believe tax cuts are only good when
they get to control who benefits from them.
And what's this I see in my mailbox?
Ah yes! The famous GST cut, which is costing the federal treasury 20 times what they say the proposed Education Savings Plan credit would. And how much has that helped the ordinary Canadian?
Let's see:
One of the problems involves businesses not passing on the savings. A chain of movie theatres, for example, stands to make a profit of over $5 million: the price of a ticket is the same as before, with the fine print stating that the GST is included in the ticket price. Now that the GST is down to 5%, however, ticket prices are still the same, which means the chain is raking in a lot of extra money without lifting a finger or providing better service.
Marketplace has found identical practices among taxi companies, parking lot operators and even at the Toronto Star, which subsidizes itself, at taxpayers' expense, to the tune of over $300,000 a year by pocketing the GST savings.
And that's not the big way this flashy little tax cut is a bogus claim. Being that it's tax time, most Canadians are probably aware of that little box on their income tax forms that asks if you are applying for the GST/HST tax credit. That little credit was brought in to refund the GST for all of those households who don't have a lot of money. At its base rate, anyone making less than $30,000.00 a year is effectively getting all of their GST back for what they consume, and depending upon marital status and dependents, you can get at least some portion of it back as your annual income rises into the $40-50,000 range.
Based on the 2005 tax year, almost 40% of Canadians who file income tax returns make less than $30,000. Another 17% make between $30,000 and $40,000, and about 13% make between $40,000 and $50,000. Now, this doesn't work in a straight line because the GST credit is based on household income rather than personal income, but once you throw in the dependent's and spousal amounts, it is a fair bet that for roughly half of Canadians, the GST cut did, as my Dad would put it, "Sweet Fuck All!"
The Conservatives are all about helping themselves and their cronies. As for ordinary Canadians?
Prime Minister Stephen Harper says Canadians feeling the effects of the global economic slowdown shouldn't expect government bailouts any time soon.
. . .
"I don't believe that's what Canada needs and I don't believe that's what Canadians want. They want lower taxes, less debt and carefully targeted assistance that helps workers, families, communities, businesses."
Just not anything that would help Canadians save money to send their kids to university, forgoing massive student loan debts, ensuring they get better paying, knowledge-industry jobs, that businesses can't find enough local talent for.
There's some long-term planning for you.