Monday, October 31, 2005

Here's one for the "Extraordinarily Stupid Idea" file

CBC Reports:

The Goods and Services Tax should be applied to food, with the revenue given to farmers to help save the struggling industry, a farm group says.

The Agricultural Institute of Canada – a group dedicated to farming research and education – believes adding the seven per cent tax to what we eat will help farmers.

"Farmers produce way more than they used to ... and yet they still can't stay in business," said Hugh Maynard, who has written a report on the issue.

"The long-term trend is that the price of food is going to continue to go down ... as the capacity to produce increases."

The GST is applied to most goods and services but not basic groceries, most medical services and devices, prescription drugs, residential rents and exports.

6 comments:

Anonymous said...

What do we need farmers for? We have grocery stores...

Little City joke for ya, muhahaha.

Shawn said...

Wow, a tax for every problem. Never mind that governmental policy is one of the main reasons that farmers are in a tight spot. Not allowing them to sell and use their crops as they see fit is a huge roadblock to increasing their profits by adding value to the raw product. Sort of like not allowing aboriginals to own land and houses on reserves. A distinct lack of property rights is the common denominator here.

Anonymous said...

The subsidy for farmers aspect of the plan is stupid, for all the reasons the CTF has already chronicled.

Broadening the GST to include basic groceries, however, would be good policy. If the GST was applied to basic groceries, they could drop the overall rate to 5%, increase the GST rebate for low income Canadians, and stop the distorting effect the current sea of GST exemptions has on the economy.

Shaky said...

The idea of applying the GST to all goods and services makes sense only, if as suggested, the rate is reduced down to 5%. A similar idea was suggested for the province of Saskatchewan by Jack Vicq and the Restaurant and Bar lobby was up in arms claiming that nobody would have a meal or drink a beer with an extra 7% on their bill.

Also, farmers shouldn't get a dedicated tax since they are already heavily subsidized. Farming is a business not a way of life. If you can't make it work on the farm try something else.

Anonymous said...

The Agricultural Institute is funded by who? The AIC is used to float another enormously stupid idea by what party? The same party once promised to eliminate the GST altogether. The same party cannot be trusted to do anything in the interest of Canadian's, because they only do things to enrichen themselves at the expense of the rest of us.

Anonymous said...

There really is nothing wrong with farm prices that are the same as those of the 1960's and early '70s.... if the farmer could buy goods and services today that reflect the prices of that era. The old saying, "There's nothing wrong with $2.00 wheat...I just want to buy those .10 cent shirts" is very apt here. Sure the world price for wheat may only be $2.00...but what's the world price for a shirt? They male them in Asia for about a nickel. Why should the farmer sell at world prices and have to buy his goods and services at a Canadian price. I am tired of protecting eastern industry with all kinds of tariffs (that is a tax too ). So let's get our heads out of the sand and create a level playing field before we lose our whole farming community. A 7% tax on a loaf of bread would be about .10 cents... is that really to much when you consider what the tax (tariff) on an eastern made car is?

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