One of the entries to be a federal Conservative Party leader has an interesting idea for tax reform.
Candidate Rick Peterson says he wants to raise federal sales tax to 9%, up from the current 5%.
But while a Conservative pitching an increase in taxes might sound out of the ordinary – it’s because he’s also calling for a radical reduction in taxes elsewhere.
“And the only way to do that is to come up with a plan that cuts taxes, cuts government spending, and yes part of that is gonna be to increase the GST from five per cent up to nine per cent”
Peterson says the GST hike would offset a radical cut to corporate taxes, bringing them down to zero. He says he’d also slash income taxes so that everyone in Canada paid a flat 15%
He says the idea is to stimulate the economy by stopping taxation on investment and instead taxing consumption.
Peterson says to do they want to bring in a program to take corporate tax down to zero and have employees pay a flat 15% tax rate.