harmonization

COYNE: You’d think provinces would not have to be bribed to act in their own interest

Stephen Gordon questions the NDP call for a tax break on home-heating costs.

Jack Layton pitches tax relief.

ANDREW COYNE: It isn’t a tax grab. Prices won’t increase. So why all the fuss?

Jack Layton, in QP yesterday, wondering if Stephen Harper agrees with his previous self.

Days after a report that he’s been told to zip it, the Finance Minister dares express his personal opinion on sales tax harmonization.

Jim Flaherty, March 30. Last week, Ontario’s Liberal government, after objecting to the combined tax for years, decided to switch. Ottawa agreed to help Canada’s most populous province with that move by giving Ontario one-time compensation of $4.3 billion. ”I think this is very good economic policy,” Flaherty told reporters in Ottawa Monday. “This is a massive tax cut, a $5 billion tax cut for businesses in the province of Ontario and that means job creation and investment in the province of Ontario. So, this is very good economic policy over time.”

Jim Flaherty, April 10, 2008. We’ve done our stimulus at the federal level but we really needed the province to do its part, and of course we’re also calling on the remaining provinces that have not harmonized their PST with the GST to work with us to accomplish that goal of harmonization. That would be a great tax burden relief for businesses in Ontario that’s certainly needed.

The case for cutting consumption taxes