Stephen Gordon has predictably rushed in to criticize the NDP's call to remove the GST/HST from home heating. But while Gordon has taken a fairly consistent line in favour of consumption taxes in the abstract, I haven't seen much from him directly addressing one element of our current tax policy which makes the idea an entirely logical fit.
So, to Gordon or anybody else looking to take his side:
Is there such a thing as an essential good that should be left out of a consumption tax system (e.g. groceries as matters stand now)? And if so, isn't there at least a reasonable argument to be made that heating oil should similarly be classified as essential?
Or is the preferred model simply to tax as many goods and services as possible? And in that case, why isn't there just as much effort to point out that omission in our current tax policy as there is to pillory the NDP for its proposal?
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