>I don't think cutting 1% off the GST will hurt both.
The GST generates " $28 billion annually, and between 15 and 17 per cent of federal revenues each year)". That's 4 billion dollars of revenue gone. Something major will go.
http://www.cbc.ca/canadavotes/leadersparties/gst.html>You may remember that the GST was to be "revenue neutral". We all knoew that was bunk at the time and it's a big reason the (old) Conservatives got 2 seats in the next election.
Looking on wikipedia, I didn't know the part about the senate blocking the GST, then Mulroney temporarily increased the size, to win the vote.
"The Liberal-dominated Senate refused to pass the tax into law. In an unprecedented move to break the deadlock, Mulroney used a little-known constitutional provision to increase the number of senators by eight temporarily, thus giving the Progressive Conservatives a majority in the upper chamber. In response, the Opposition launched a filibuster and further delayed the legislation."
http://en.wikipedia.org/wiki/Goods_and_Services_Tax_%28Canada%29