PAGE 16, WIFMY FREE PIÉ-ESS. WEDNESDAY, SEEMBR 21.'1989 Soetens: GST is right fior Canda By Trudie Zavadovics Saying it's best for Canada, Rene Soetens backs the nine per cent gaods and service tax - even at the cost of votes. «I'm going to have to answer ta you for this tax," said Soetens ta a packed room of business people at the Ajax Legion Sept. 20. "I want ta be there in 1994 but not because I made the wrong decisions. I want ta, make deci- sions based on what's right for Canada, not on what's right for being re-elected.» Soeten's comnients came in response ta an audience member wbo commended Soetens on bis salesmanshi p but expressed doubts about Soetens' re-election. The- seminar was a first of a st ries of meetings of the 18- member Ontario Riding Smal Business Caucus, established to improve communications 'bet- ween the business sector and Rene Soetens. "You've got a voice on the commiîttee that has the ability ta put a voice ta concerns,"> said Soetens of bimself. Tom Hockins, Minister of State for Small Business and Tourism, and Rick Byers, tax liaison with the tax department, also made presentations and answered' audience questions about the tax. Audience concerns included q uestions about the deficit, government spending,. when ta, buy, cash flow, consumer's bene- fits (will- they actually get any?), loss of jobs and administration of the tax. The first question answered in tl-e presentation was "Why the *tax?': Soetens and audience mem- . bers agreed that the deficit must be reduced, taxes should be more fair and thé Canadian economy more competitive., "The federal sales tax started in 1924 and was appropriate, for its tim.e," S'aid Byer "Now, 65 years later,'it has resulted in a sinfcant :revenue loss, and treats imiported goods more pre- ferentially than experts. We need to get a more progressive tax system sae higber incomes pay e explaipied that on imported goods costi:ng $100 Canadian, there is a tax levied, across the border, of, $13.50. Canadian manufacturers, however, pay a total of $20.'75 in taxes. "The existing system is. a p -nalty to Canadian manufac- turers," said Byers. He said that the goods and service tax was not a new idea. It is a system that is now used by some 50 places around the world. He also assured the business people of quick refunds. "Money will be remitted.within 21 days of applicêations or interest (prime plus 2 per cent) will be accrued," said Byer. The Miing require- ments are that businesses mak- ing over $6-millian would have to file their GST monthly; businesses making between $500,000 and $6-million file quarterly returns, while businesses-making $500,000 or less wouldifile annually and pay quarterly. Up to $6 1 0 in administrative fees will b paid to small businesses based on 0.4 per cent of ;sales.1 Hockin called the existing 13.5 per cent manufacturers' tax "an absurdity internationally. W e got it 65 years ago an2d hav4 been trying get rd of itfor 4No other country has this." He said tat in EngIan, they work on the 9 per cent GE T and "Now Thatcher's paying iff the debt." He said that in five ye rsthe federal government can b lIanoe the budgýt and work! on a national tax basis and 'That's why we're doing what we're doing." He invited suggestions for improv ements ta the current plan as well.as any questions from the audience. i "Why the nine per cent?" was one question. "IW everythin g was taxed, Canadians could h ave a straight five per cent tax," said Soetens. "But there would be no give backs. We couldn't put $900 mil- lion to new housing or pay out $2-billion to low income Cana- dians. If food was taxed, we could decrease the GST to eight per cent." One audience member asked about buyin in the U.S. to avoid the tax, ani was told that the duty on the goods would include the.GST., '"The Canadian increase in in-. flation is two per cent, how are we going to use this to cnt the deficit?» "If we don't change the sales tax system,» said Soetens, "We have a bujît-in one per cent interest rate forever. Interest rates won't respond toa one-time blitz. Once the tax is digested in the system, then it camres on." "It wiil bring in good predicted revenues," said Hockins. "It will decrease the deficit by making the economy more productive." That prompted questions about government spending, at which point Hockin asked people ta "Please point your fingers to municipalities and the Province. Our speniding has been below the level of i nflation." Soete#is reminded the adiee that he is known as «te guy whow. didn't want to spend a nickel on anything. We're spending much less in '89 than in '84.» As to benefits from the tax, Byers assured that. the consumer would gain through a campeti- tive environmient. H e said that if one retailer adjusted prices to assure his customers got the best value then others would have to follow. He also said that there would be much information available to the consumer over the next 15 months about the new tax s0 theyshould have a ggod idea as SEE PAGE 25 Appýreciati 1on awards WHITBY LTONESS Club president Debbie Dawson (left) and campaign chairman Eleanor Stevenson were among those who received volunteer appre- ciation awards at the March of Dimes-Durham branch awards ceremony recently. Free Press photo Firearms area enlargted A recomniendation ta enlarge the area where firearms are pro- hibited bas been approved by Whitby council. The request ta change the boundaries came from a resident an Winchester Rd. W. who said in a letter ta the Town that the stretch of Halls Rd. from Hwy 7 south ta the wrecking yard b as grown ta 17 bouses from the original four. With the bouses came an in- crease in children living in thie area. The Town clerk's de partment recammended that the discharge of firearmns be generally prohibi. ted soutb of Winchester Rd., in the village of Brooklin, and in the hanilets of Asbburn, Myrtle and Myrtle Station. The current exemptions relat- ing ta police, animal contrai offli- cers and Tawn-authorized events would continue ta apply. SPREADING EVERGREENS GOLDMOUND Choose tram 8 var- PR . jeties of great quaiity A compact growing spirea 15- 18" spreading ever- - variety with golden fluage. greens. 1 gallon size. A. Colour holds well from spring Super Buy.- through fal.Pink flowers mid ONLY Reg. $12.99 $9399 ONLY$9.99 BULB SPECIAL King Atffred T rumpet Daffadil Large size bulbs. Golden yellow flower in mid- season. Reg. $119 Now Only $.69each Apeldoorn Tulips. 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