Oh great. We live in a world where these fuckers set prices based on what people can afford. This change would provide more headroom for them to increase prices, effectively shifting money from the government to Galen’s pocket. If Jagmeet is serious about tackling this, he should start socializing the big bad words - price controls, nationalization, creating national grocer/telecom/etc, company breakup. If he wants to tack on removing the regressive sales tax on necessities in addition - that would be fine. In the absence of changing the market, it’s going to provide temporary relief and long term higher profit for the big firms.
This change would provide more headroom for them to increase prices
But people would notice that immediately. Listed prices don’t include the GST/HST.
The other part of the promise is the following:
Singh says an NDP government will pay the tax cut with an excess profit tax paid by very large corporations that hike their profit margins.
So, it’s basically in line with the ethos of “tax the rich and feed the poor.” I love it.
certain essentials are already not subject to sales tax, do you similarly object to that?
I’m down with what you’re suggesting but I’m also down with palatable and actionable short term solutions that might actually get implemented and appeal to the voting population
I don’t object since whomever sells those has already maximized their prices under the current conditions.
Price controls are also an actionable, short term solution. I want someone to stop the corporate friendly theater and bite into those profit margins in favor of the working class. I’m disappointed that Jagmeet isn’t doing that and I see the NDP as the only party that might have the balls to do these things. I see this proposal as more of the standard ineffectual corporate policy. Like the stern finger wagging at corporations that we saw on display by bringing Galen for questioning.
Here’s what I believe would be a better proposal:
“Singh to scrap GST on home heating, grocery meals, internet and mobile bills, diapers, kids’ clothes and introduce caps on profit margins on these items”
On a side note, sales taxes are obviously regressive. In general, on tax, I’m currently with the MMT folk. Taxes don’t fund government spending. Their purpose is taking money out of the economy (to keep inflation in check) and modifying behavior - encouraging more of this, discouraging more of that. So I’m totally fine abolishing sales taxes altogether. But that’s a much bigger and scarier shift than taxes/controls on necessities. 🥲
