Something you don't hear every day.

the Conservatives called CBC this week to say that while they would allow the Liberal tax cut to stand for last year, meaning Canadians will still get that tax rebate, they intend to immediately raise personal income taxes if they are elected later this month.

Emphasis mine. Story

Tory Tax Cuts Suck (for low income Canadians).

Note: this post contains vagaries of Canadian tax system. Enter at your own risk.

Tory campaign promises: lower the basic personal exemption by $400 (this is an increase to income taxes), raise the lowest tax rate from 15% to 16%, and lower the GST from 7% to 6%, then 5% later.

What's going to be better for Canadians? How about, especially, lower-income Canadians?

Sylvia lives in Eastern Canada and makes $15,000 per year.

She gets $8648 removed for the federal basic personal exemption. Then she pays 15% of the remaining for federal tax. That's $979.80.

She gets $8061 removes for the provincial basic personal exemption. Then she pays 9.68% of the remaining for provincial tax. That's $329.02.

Total is $1308.82.

That's under the current setup. Let's try it under the Tory plan:

She gets $8248 removed for the federal basic personal exemption. Then she pays 16% of the remaining for federal tax. That's $1080.32.

She gets $8061 removes for the provincial basic personal exemption. Then she pays 9.68% of the remaining for provincial tax. That's $329.02.

Total is $1409.34.

So the Tory plan means paying more for personal income taxes, to the tune of about $100. OK, not a huge difference, plus the Tories will be reducing the GST by one percent sometime next year. Let's give them a bonus and give them the GST cut for all of 2006, which they can't actually do. That means that Sylvia would be saving 1% of sales tax on every purchase. To match the $100 savings, she'd have to spend... umm... $10,000 on GST-applicable things.

Here are some things that do not get charged GST: groceries, residential rent, and medical services, and financial services.

How much money is Sylvia spending on taxable items? Not $10,000.

Yes, the suppliers of things pay GST too, so there's trickle-down in theory. I doubt there will be sudden drops in prices though. I believe most suppliers will simply pocket the minor savings.

Cheap shot to finish up: Some rich Tory voters could save the entire $100 in GST just by buying this.

Profile 3: Kitchener—Waterloo

c9's Pretty Clearly Left-Leaning Riding Write-ups!

Riding: Kitchener—Waterloo
Map: http://www.elections.ca/scripts/pss/maps/P35039.pdf
More info on your riding

Riding 35039, Kitchener—Waterloo, includes the city of Waterloo and part of the city of Kitchener.

The city of Waterloo makes up about three-quarters of the riding. Waterloo's economic activities include manufacturing, financial and insurance sectors as well as retail trade. It has a strong technology sector and is home to University of Waterloo, Wilfrid Laurier University and a campus of Conestoga College.

Average family income is $84,077 and unemployment is 5.5 per cent.

Population: 113,000

(writeup above primarily from cbc.ca)

2006 Candidates:
Julian Ichim (Marxist-Leninist Party of Canada)
Edwin Laryea (New Democratic Party)
Ajmer Mandur (Conservative Party of Canada)
Pauline Richards (Green Party of Canada)
Andrew Telegdi (Liberal Party of Canada) (Incumbent)

Recent Election Results:

	LIB	CPC	PC	CA	REF	NDP	OTHER
2004	48.1%	29.5%				15.9%	6.5%
2000	50.3%		16.0%	23.0%		8.2%	2.5%
1997	47.7%		22.1%		20.0%	9.0%	1.3%

Prior to 1997, this riding did not exist in its present form. But the area's MP was: Liberal (1993-present), PC (1979-1993), and NDP (1964-1979).

NDP, Green, and Liberal candidates same as 2004. Not the Conservative, which I think lowers their chances. The NDP are not going to win this one unless there's a large shift in the vote. The academic and young population might make that happen, but the heavy religion in the area suggests it won't happen.

www.electionprediction.org says: Liberal, but may be close.

In this riding, the NDP typically runs third. If you are scared to give an inch to the Conservatives anywhere, then vote Liberal here. If you prefer to strengthen the NDP, even in the unlikely event you end up with a Conservative MP, then vote NDP here.

Hot Issue: Equal Marriage. The incumbent is very supportive. (http://www.equal-marriage.ca/resource.php?id=199)


( Explanations and non-riding-specific information )

Disclaimer: Your vote is your choice. If you think I'm wrong go ahead and (a) comment about it, and (b) vote your heart. I can take it.