Politics

Liberal leadership candidate Karina Gould vows to temporarily lower GST to 4%

Liberal leadership hopeful Karina Gould has proposed a temporary cut to the federal sales tax on goods and services if she becomes the next Prime Minister of Canada. Currently, the federal goods and services tax (GST) stands at five per cent, with some provinces incorporating it into a harmonized sales tax (HST) alongside a provincial portion.

Gould’s plan involves reducing the GST to four per cent for a period of one year, aiming to provide relief to Canadians who are feeling the pinch of rising costs. She emphasized that this measure is a tangible way to show that she is listening to the concerns of the people and is committed to easing their financial burden.

The cost of implementing this temporary GST cut is estimated to be $11 billion, as calculated by the Parliamentary Budget Officer (PBO). In addition to this proposal, Gould also intends to permanently increase the corporate tax rate from 15 per cent to 17 per cent for companies earning more than $500 million annually. This adjustment is projected to generate an additional $6 billion in federal revenues each year.

Gould’s campaign platform also includes initiatives to support families, such as permanently removing the federal sales tax on certain children’s items. In December, the Liberal government implemented a temporary GST holiday, exempting specific goods like children’s toys and clothes from the tax for two months.

As the Liberal Party prepares to select its new leader on March 9, Gould faces stiff competition from front-runners Chrystia Freeland, former finance minister, and Mark Carney, former Bank of Canada governor. Despite having fewer caucus endorsements than her rivals, Gould believes that her grassroots support among party members will be a deciding factor in the leadership race.

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In response to questions about calling an election before Parliament reconvenes in March, Gould emphasized the importance of assessing the prevailing circumstances. She stressed the need for a leader who can effectively navigate potential challenges, such as trade disputes with the United States, and prioritize the best interests of Canadians.

Overall, Karina Gould’s proposal to temporarily cut the GST and increase corporate taxes reflects her commitment to addressing economic concerns and promoting fairness in the tax system. With the Liberal leadership race heating up, the outcome remains uncertain, but Gould’s focus on grassroots engagement and policy innovation sets her campaign apart in a crowded field.

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