Editorial

Proposed GST puts
more burden on workers

Waiting until the first week of
August, the federal government
finally released its technical paper
on a new 9% Goods and Services
Tax to be put into effect on Janu-
ary 1,1991. Although the Tories
had promised to release details in
the House of Commons in June,
they decided to wait until every-
one had gone to the beach before
dropping the bombshell.

It comes in the form of a mas-
sive tax grab. This time it’s in
excess of $25 billion out of the
pockets of ordinary Canadians.
Add that to last April’s federal
budget tax gouge of $10.7 billion
and it shows how clearly the fed-
eral Conservatives intend to pound
working Canadians.

The Tories claim that the new
G.S.T. simply replaces an unrelia-
ble Manufacturers’ Sales Tax of
13.5%. Now big business will no
longer pay the M.S.T. as any reve-
nue shortage will be more than
made up by the upcoming windfall
created by the new sales tax.

Starting in 1991, almost every
goods and service will be taxed
and double taxed in most prov-
inces, unless there are federal/
provincial agreements to specify
otherwise. In all provinces, except
Alberta, provincial sales taxes will
be calculated on top of the new 9%
federal tax. In some areas of the
country the total tax trauma will
reach as high as 20% of the face
price of the goods or service.

Finance Minister Michael Wil-
son says that since the M.S.T. will
be eliminated, the prices of big
ticket items such as automobiles,
appliances, furniture, etcetera
should reduce accordingly. This
reduction in corporate taxes will
surely be passed on to the
consumer!!

But prices on manufactured
goods will most likely remain unaf-
fected by the corporate tax break.
Corporate Canada rarely misses
an opportunity to bolster profits
at the consumer’s expense.

Once again the Tories are prov-
ing themselves as consummate
liars. Before the 1988 election, Wil-
son said a new G.S.T. would allow
elimination of a federal surtax and
a reduction in the middle income
bracket from 26% to 23%. But this
past August before the Commons
Finance Committee, Wilson said
he could not fulfill his previous
statement — the federal surtax
would stay put and only a 1% tax
bracket drop would be possible.

Wilson also said during the 1988
election that, “The bottom line is
that the sales tax will not be used
to raise the revenues of the govern-
ment of Canada.” (i.e. it will
remain revenue neutral). And now
fellow Tory Don Blenkarn, Chair-
man of the Finance Committee, is
saying that the Tories could use
the upcoming tax windfalls to
reduce the deficit or provide
income tax cuts before the next
election.

TNERIO RICE FOR THE LUMGERWORKER

“MICHAEL WILSON HERE . .. JUST CAME BY TO SELL YOU A BILL OF GOODS
AND SERVICES TAX"

Despite pre-election re-assur-
ances that any federal sales tax
would be visible, Wilson now says
that those who provide a goods or
service won’t have to identify the
tax component on the sales receipt.
Thus, the diabolical Tories can
silently increase the G.S.T. in
years ahead.

The Finance Minister agrees
that the G.S.T. will cause infla-
tionary pressure on the Consumer
Price Index and warns that “if
people want to benefit from the
change to the G.S.T. from the old
manufacturers’ tax, they will forgo
wage and price hikes.” In addition,
the government technical paper
says inflationary” effects of a new
G.S.T. will be minimized if wage
bargainers (i.e. trade unions) do

not seek to pass on the initial price
impacts through increased labour
costs.

The Tories are, in effect, asking
Canadian workers to shoulder all
of the cost of the deficit cutting
strategy.

Government will spend millions
of taxpayers dollars this fall trying
to convince the Canadian public
that their tax scam will be a good
thing. Wilson has established a
“Communications Working
Group” to put on the hard sell.

The Mulroney government
hopes that, after ramming through
the legislation this session, it can
sell us the G.S.T. just as easily as
their business friends and big guns
controlling the media sold us the
“Free Trade Deal.”

The LUMBERWORKER welcomes
letters from its readers. Letters
must be signed with an address and
phone number as the editor may
wish to confirm authorship. Please
be brief. The editor reserves the
right to condense letters.

LUINIBER
WORKER

BROADWAY e@BD> prinreRs L10.

Official publication of IWA-CANADA
NORMAN GARCIA, Editor
5th Floor, 1285 West Pender Street
Vancouver, B.C, V6E 4B2

TAGHAMUNRO 0.2... President
GERRY STONEY - Ist Vice-President
NEIL MENARD . 2nd Vice-President
FERNIE VIALA . . 3rd Vice-President
BILL POINTON . . 4th Vice-President
ROGER STANYER .. . 5th Vice-President
‘TERRY SMITH... .. Secretary-Treasurer

Public opinion of labour
improves as numbers grow

Current statistics released by Lab-
our Canada and a recent poll compiled
by Angus Reid Associates, indicated
that trade union membership and pop-
ularity in Canada is on the upswing.

Union membership, according to a
Labour Canada report last August, is
up 2.7% over last year. More than 3.9
million workers nationwide are
employed under collective agree-
ments.

Organized Labour now accounts for
36.2% of all non-agricultural paid
workers in the country.

A nation-wide tracking poll by
Angus Reid Associates made public
in June, showed favourable public per-
ception of trade unions is increasing
over the last two years.

A majority of Canadians believe
that unions have a positive individual
impact on workers and more than six
out of ten agree that unions have a
positive impact on the country as a
whole.

The highest support for labour
comes from higher income earners,
younger men, and blue collar workers.

The Canadian public, according to
the poll, wants to see the labour move-
ment place a consultative construc-
tive role with government and busi-
ness. Nearly six out of ten persons
said government should consult with
labour groups before developing poli-
cies on issues like free trade and unem-
ployment insurance. Two out of every

three Canadians think that labour
should act on public policy issues (i.e.
free trade or day care).

The tracking survey also shows
that the union movement should try
to improve the image of its mandate
in some population segments where
labour should have important constit-

uents — women, lower incomes, and
Atlantic Canadians.

British Columbian residents lead
the poll in their belief that the Cana-
dian labour movement is weakening
while 71% of those people think that
unions have favourable effects on indi-
vidual workers.

° A new poll by Angus Reid Associates reveals that the majority of Cana-
dians think that trade unions have a positive impact on individuals and the
country as a whole.

LUMBERWORKER/SEPTEMBER, 1989/5