Tuesday, September 15, 2009

A Sorely-Needed Math Lesson for Deficit Jim Flaherty

Since Jim Flaherty's Question Period answers on the HST suggest that he's either a bit unclear on the concepts of "raising" and "reducing" or having trouble with basic integers, let's help him out in figuring out what his government has done for the citizens of B.C. and Ontario.

7% (GST starting point) - 2% (GST cuts) + 7% (increase as PST-exempt goods are harmonized) = 12%. 7% < 12%. Therefore, sales taxes in British Columbia have been raised, not reduced, on goods and services subject to harmonization.

7% (GST starting point) - 2% (GST cuts) + 8% (increase as PST-exempt goods are harmonized) = 13%. 7% < 13%. Therefore, sales taxes in Ontario have been raised, not reduced, on goods and services subject to harmonization.

And since Deficit Jim was the one who paid off the provinces to carry out the increase linked to harmonization, that would make his a "party that raises taxes".

Hopefully this at least gives Flaherty a slightly better idea how numbers work. But one would think it might have been a good idea to start learning sooner than three and a half years into his stay as federal Finance Minister.

(Edit: fixed typo.)

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