GST CUT Savings

You wouldn't believe the tax savings I was able to enjoy yesterday, thanks to the Conservative GST cut. I bought a can of coke, a chocolate bar and a large bag of chips,, and saved $0.05. I spent 10.00 in various items to celebrate Canada day and saved $0.10. My fiancee spent $100.00 on various GST-taxable items and saved $1.00!

Between me and my fiancee, we spent a total of $115.00 on an assortment of items, and saved a grand total of $1.15. Truly amazing. But wait, if the GST were dropped to 5% (as will be the case in the future if we re-elect the CPC), we would have saved $2.30. Even better.

But wait... for all Canadians, today also marked a drop in the Basic Personal Amount Exemption:

Basic Personal Amounts
The basic personal amount-the amount that an individual can earn without paying federal personal income tax-will be increased by $500 to $8,648 for the 2005 taxation year. For the first half of 2006 it will then be increased by indexation plus a further $200, for a total of $9,039. The basic personal amount will be reduced by $400 to $8,639 on July 1, 2006 at the same time as the GST rate is reduced.

As well as this:
The lowest personal income tax rate will be reduced to 15 per cent from 16 per cent effective January 1, 2005. The rate will then be raised to 15.5 per cent effective July 1, 2006.

Between me and my fiancee, we saved $1.15 today by spending $115.00. Unfortunately for us, when we file our income taxes next year, it looks like any savings we accumulate over the year will be recollected, and then some.

Let's all celebrate the GST Cut, and while we're at it, we can also celebrate the raise in Income Taxes for the lowest income Canadians!