Reality check: New Democrats vs. Conservatives on sales taxes

At the same time as they are forcing an agenda of higher taxes on BC and Ontario families, today in Question Period, the Harper Conservatives dared to once more suggest that their party has a better record on regressive sales taxes than New Democrats. It’s not the case.

In the interest of cutting through the spin, let’s have a closer look at both the New Democrat and Conservative records on sales taxes, shall we?

1990: The Goods and Services Tax

What the Conservatives did: The Mulroney Conservatives passed the GST in the House of Commons by a vote of 144 to 114.

New Democrats said no: New Democrat MPs voted against the GST. (Journals, 10 April 1990)

1991: GST / PST Harmonization in Saskatchewan

What the Conservatives did: The federal Conservative government struck a deal with Saskatchewan Premier Grant Devine to harmonize the GST and the provincial sales tax.

New Democrats said no: Upon being elected in Saskatchewan, Roy Romanow’s first act as premier was to announce he was scrapping the harmonization.

1996: GST / PST Harmonization in Nova Scotia, New Brunswick and Newfoundland and Labrador

What the Conservatives did: Conservatives supported Liberal plans to harmonize the GST: “We commend the government on its attempt to harmonize the tax with the provinces.” – Reform Party minority report on the replacement of the GST, June 1994.
New Democrats said no: New Democrat MPs voted against the harmonization. (Journals, 2 December 1996)

Oh, and just for the record, the government responsible for the largest sales tax cut in Canadian history was a New Democrat government.

Under New Democrats, Saskatchewan’s PST was cut from 9 percent to 5 percent – a 44 percent decrease – even larger than Harper’s 2 percent cut to the GST - a 29 percent decrease.