Burlington MP Karina Gould said if she becomes the next prime minister, she would lower the GST to four per cent for one year.
Gould says she would permanently raise taxes on companies with profits over $500M
Darren Major · CBC News
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Liberal leadership hopeful Karina Gould says she would temporarily cut the federal sales tax on goods and services if her bid to replace Prime Minister Justin Trudeau is successful.
The federal goods and services tax (GST) currently sits at five per cent. In some provinces it is included in a harmonized sales tax (HST) where a provincial portion is collected in conjunction with the federal tax.
Gould said if she becomes the next prime minister, she would lower the GST to four per cent for one year.
“For Canadians that I hear from, this is a real, tangible measure that demonstrates, as a leader, I’m listening to them when they say things are expensive and they need a break, ” Gould said during a news conference on Thursday.
“[A GST cut] is one of the things that the federal government can do immediately to offer that support to Canadians,” she said.
WATCH | Gould outlines proposal for 1-year GST cut and corporate tax hike:
Gould proposes 1-year GST cut, permanent corporate tax hike
Liberal leadership contender Karina Gould announced Thursday that, if elected prime minister, she would decrease the GST to four per cent for a year and permanently increase the corporate tax rate for companies with profits of more than $500 million.
In December, The Liberals enacted a temporary GST holiday, removing the tax for two months on certain items — including children’s toys and clothes. Gould had previously promised to permanently remove the federal sales tax on some children’s items.
Gould’s proposal to lower the tax by one percentage point for a year would cost $11 billion, according to calculations made by the Parliamentary Budget Officer (PBO).
In addition to the temporary GST cut, Gould said she would also permanently increase the corporate tax rate — from 15 per cent to 17 per cent — on companies that make more than $500 million per year in profits.
“I think it’s time that those very wealthy corporations pay their fair share,” the Burlington, Ont., MP said Thursday. She said the change would boost federal revenues by $6 billion annually.
The Liberals are set to announce their new leader on March 9. A party spokesperson told CBC News Thursday that there will be two debates — one in English and one in French — taking place sometime after Feb. 17.
So far in the race to replace Trudeau, former finance minister Chrystia Freeland and former Bank of Canada governor Mark Carney have largely been viewed as the front-runners.
Carney currently has the endorsement of 62 Liberal caucus members and Freeland has the support of 26. Gould has only secured two caucus endorsements.
When asked about her position in the race, Gould argued her campaign is appealing to grassroots Liberals.
“It’s one member, one vote in the Liberal Party of Canada and there are thousands of people across the country who have raised their hands to say that they are in,” she said.
“We don’t need a coronation … what we need is a debate of ideas. It’s what the Liberal membership and it’s what Canadians deserve.”
Gould was also asked if she would call an election before Parliament returns in March should she win the race. The former Liberal House leader said her decision would depend on the context.
“If we are in a full-blown trade dispute with the United States, where does that leader and our government’s energy need to be?” she said.
“I think we’re going to have to figure out where we are on March 9.”
ABOUT THE AUTHOR
Darren Major is a senior writer for CBC’s Parliamentary Bureau. He can be reached via email at darren.major@cbc.ca.
With files from Derek Vanderwyk
