Coping
      with
      the
      GST
     
    
   
   
    
     
       
     
    
   
   
    
     
      A
      post-election
      look
      at
      Canada’s
      most
      hated
      tax
     
    
   
   
    
     
      he
      Goods
      and
      Services
      Tax
      (GST)
      was
     
     
      T
      first
      implemented
      roughly
      three
      years
     
     
      ago
      by
      the
      now-deposed
      Progressive
     
     
      Conservative
      government.
      Since
      its
      concep-
     
     
      tion,
      this
      tax
      has
      prompted
      serious
      arguments
      as
     
     
      to
      how
      beneficial
      it
      is
      to
      the
      Canadian
      consumer
     
     
      and
      the
      economy
      as
      a
      whole.
     
    

    
     
      The
      Conservatives
      introduced
      this
      tax
      to
     
     
      replace
      an
      earlier
      tax
      that
      wassaid
      to
      be
      out-
     
     
      moded
      or
      antiquated.
      The
      old
      tax
      was
      basically
     
     
      more
      subtle
      than
      the
      GST,
      which
      produced
      a
     
     
      hostile
      public
      reaction.
      The
      GST
      is
      a
      surface
      tax
     
     
      in
      the
      sense
      that
      its
      seven
      percent
      charge
      is
     
     
      applied
      to
      the
      purchase
      of
      most
      goods
      and
     
     
      services,
      many
      of
      which
      were
      exempt
      from
     
     
      taxation
      in
      the
      past.
      The
      GST
      has
      exemptions
     
     
      and
      a
      rebate
      guarantee
      which
      would
      appease
     
     
      Canadians
      to
      some
      extent,
      but
      for
      the
      majority
     
     
      of
      the
      public
      the
      old
      adage
      of
      grin-and-bear-it
     
     
      was
      the
      rule.
     
    

    
     
      Where
      does
      that
      leave
      us
      today?
      After
      the
     
     
      defeat
      of
      the
      Conservatives,
      people
      are
      left
     
     
      wondering
      whether
      the
      Liberals
      will
      keep
      the
     
     
      GST.
      Many
      Canadians
      expect
      the
      Liberals
      to
     
     
      pursue
      the
      policy
      started
      by
      the
      Conservatives,
     
     
      thus
      continuing
      the
      unprecedented
      tax
      on
      books,
     
     
      including
      university
      texts.
     
    

    
     
      The
      manager
      of
      the
      U.P.E.I.
      bookstore,
     
     
      Russell
      Stewart,
      perceives
      the
      tax
      as
      an
      unfair
     
     
      burden
      on
      students,
      who
      already
      have
      enough
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      Business
      as
      usual
      at
      the
      UPEI
      Bookstore
     
    
   
   
    
     
      financial
      considerations
      of
      their
      own.
      Mr.
     
     
      Stewart
      can
      sympathize
      with
      the
      students’
      con-
     
     
      cerns,
      but
      is
      in
      no
      position
      to
      ban
      the
      tax
      from
     
     
      the
      bookstore.
      He
      must
      obey
      the
      policies
      insti-
     
     
      tuted
      constitutionally
      by
      law.
     
    

    
     
      From
      the
      students’
      perspective,
      the
      GST
      and
     
     
      its
      tax
      on
      books
      (among
      many
      other
      things)
     
     
      creates
      further
      complications
      in
      addition
      to
     
     
      such
      problems
      as:rising
      tuition
      costs,
      cost
      of
     
     
      living,
      and
      a
      general
      feeling
      of
      financial
      de-
     
    
   
   
    
     
      for
      it.
      &
     
    
   
   
    
     
      spair.
      Still,
      there
      are
      other
      factors
      to
      consider
     
     
      apart
      from
      the
      costs
      to
      students.
      Though
      the
      tax
     
     
      is
      unpopular,
      if
      eliminated
      the
      revenue
      it
      now
     
     
      generates
      would
      have
      to
      come
      from
      somewhere
     
     
      else,
      possibly
      in
      the
      form
      of
      cutbacks
      in
      the
      civil
     
     
      service,
      medicare,
      social
      security,
      and
      unem-
     
     
      ployment
      insurance.
      Ifthe
      tax
      is
      to
      be
      replaced,
     
     
      there
      must
      first
      be
      a
      viable
      economic
      substitute
     
    
   
   
    
     
      GEORGE
      ANDERSON
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      8/X-Press/November
      4,
      1993