Mr. Speaker, members will know that the Conference Board has already given an opinion on this. It is in the papers today that the government cannot afford to extend both the cut in the GST and retain the income tax cut that was delivered to Canadians last November retroactive to January 1, 2005. Both these items cost in the range of some $5 billion and it is not going to be economical.
I would say that there are some problems in terms of those. I understand there is a political attractiveness on the GST side, but in terms of the economic arguments, the income tax cut to Canadians is fairer because it is across the board and is driven directly to everyone. The average Canadian family would get some $400 reduction in their income tax bill each and every year.
With regard to the GST, there are two elements. First, low income Canadians do not have spending on taxable goods which is high enough for them to generate much. In fact, most Canadians with an average income would only generate maybe a savings of $100 in their pockets. A high income earner who bought a $60,000 car all of a sudden would get $600. It is progressive and is not equitable.
More important with regard to the GST is the impact on the productivity agenda. We are going to talk a lot about that in this place. It has to do with spurring economic growth, creating jobs and a healthy economy for Canada for a very long period of time.