Applauds for the reduction to GST from politicians
By Bill Rea

The New Year opened with a break for consumers.

The Goods and Services Tax (GST) was cut from six to five per cent by the federal government.

This is the second cut that the government of Prime Minister Stephen Harper has made to the federal sales tax since it took office almost two years ago.

Not surprisingly, Dufferin - Caledon MP David Tilson was pleased to see the reduction.

"We promised two years ago to lower the GST," he declared. "We're delivering on that promise."

"The cut will assist in improving consumer confidence, encourage business growth and strengthen the Canadian economy," he added.

The two percentage point cut in the GST since the Conservatives took power means $200 is saved on a $10,000 home renovation, Tilson pointed out, or the saving of $600 when a $30,000 automobile is purchased.

Tilson also asserted the government can afford the reduction in revenues, which has been estimated at about $12 billion this year. That's in spite of the troubled economy in the United States, which could have impacts felt in Canada. Harper has alluded to those problems.

"He is saying in all likelihood there is going to be an economic downturn," Tilson observed. "But not withstanding that, we have the resources to lower these taxes."

Dufferin - Caledon MPP Sylvia Jones also thought the GST cut will benefit the economy, and that's good news.

"We have some fairly serious manufacturing stories that are not going to turn out so well in 2008," she remarked, adding a lot of well-paying jobs are likely to be lost.

"I think anything that can be done is a step in the right direction," she added.