Hated tax made and killed careers

A real issue becomes clear -no waffling - the conservative promise to reduce it to 5% - good move to but more money in your pocket PR>


The promise places the Liberals in a difficult position. The party rolled into office 12 years ago on a promise to "replace" the GST, but never delivered on the pledge.

The promise was spelled out in the party's campaign bible of promises -- the Red Book. Who co-wrote the Red Book? Paul Martin -- then a relatively unknown opposition MP, and later the finance minister who apologized for the fact the Liberals could not replace the tax.

Now, as Prime Minister, Mr. Martin's back is against the wall, trying to explain why the Conservatives' proposed GST reduction is bad public policy.
In the 16 years since the tax was first proposed by Brian Mulroney's Tories, the GST has haunted both parties, like an albatross they could not shake.
The impetus for the tax came in 1986, when the United States launched tax reform.
Here in Canada, it was difficult for exporters to compete with their U.S. counterparts. The problem was the 13.5% manufacturers' sales tax (MST). It was a hidden tax built into the price of an item, and tended to favour imported goods over exports. In 1989, Mr. Mulroney proposed to replace it with the GST. Initially pegged at 9%, it would be added at the cash register. It was a public relations disaster.
All 10 premiers opposed the tax. Lobby groups railed against it. One poll showed 80% of Canadians objected.">Hated tax made and killed careers: "The promise places the Liberals in a difficult position. The party rolled into office 12 years ago on a promise to 'replace' the GST, but never delivered on the pledge.

The promise was spelled out in the party's campaign bible of promises -- the Red Book. Who co-wrote the Red Book? Paul Martin -- then a relatively unknown opposition MP, and later the finance minister who apologized for the fact the Liberals could not replace the tax.