With the GST cut, in regards to the cost of newspapers, saving 2 cents isn't worth the hassle, and in some cases, is not even possible. What Marketplace fails to realize is that newspapers can be bought in stands, or machines. These machines can't offer change, and NO machine offers pennies as change. They simply aren't manufactured that way. The paper's price should remain consistent and therefore the only logical solution is to keep the paper's price an even round number. When determining the price of the newspaper, taxes are incorporated into that price so that the end result is an even $1 or $2, making it easy and convenient to pay for. Do you really propose to re-engineer the millions of paper boxes to give pennies as change? I didn't think so. I suppose the real question should be, do people really want their penny? If they do, then perhaps some sort of change is in order. Posted by: Martin E. | Feb 13, 08 08:01 PM

It's like Marketplace was reading my mind this week. Ever since the big GST drop I've noticed the prices of taxable items went up. Not seeing any savings at all in this wallet but the retailers are doing exceptionally well I'm sure. Posted by: Kris | Feb 13, 08 08:05 PM

December of 2005 we bought a flatscreen TV and the product replacement plan to have the TV replaced if it could not be fixed. A week after the purchase I discovered that the manufacturer had discontinued that TV. When the TV developed problems we used our replacement plan and after some negotiation the store gave us a credit for the amount we paid for the TV before the combined taxes. The GST when we bought the TV was 7%, so we lost 2% of $1399.00 or $27.98. When we mentioned this to the supervisor we were told that their cash register was not set up to calculate and refund the difference and there was nothing he could do about it. While we were there I spoke to another couple that were returning a defective computer and screen. They too had purchased the replacement plan more than a year ago. Staff told us that approximately 40% - 60% of TV's sold can expect to have problems by the second year, and that is why the replacement program is a good thing. If an average of 50% of the flatscreen TV's sold are defective in two years. If they sold a replacement plan on only 50% of the potentially defective 50%, then this year alone the store stands to make an additional 2% profit on a sizable number of high end sales. Not to mention every other electronic device they have sold under previous GST calculations. With more TVs being sold to meet the new technology demands, these stores stand to make a healthy profit on returns. Your story on the reduction of the GST has further ramifications than you know. Posted by: Norma | Feb 13, 08 08:36 PM

Mirvish Productions and Dirty Dancing....they haven't been "Honest" in years. They asked for me to mail a death certificate when I called to cancel tickets when my mother died and we couldn't go to the show! Posted by: Mike | Feb 14, 08 10:34 AM

I'd like to know what the GST reduction did to the price of gas? Posted by: Steve | Feb 14, 08 11:52 AM

Have to say this story caught my attention. There are some services that we offer through my employment and we have gone through some struggles trying to defend our decision to up the cost while lowering the GST to keep the price even. I know that it's only a few cents for some items but those few cents can add up very quickly as the Marketplace showed last night! Posted by: Mable | Feb 14, 08 11:56 AM

Taxis in BC had to adjust their rates to reflect the GST change. More information here: http://www.th.gov.bc.ca/ptb/Advisories/GST_Reduction_2008.pdf Posted by: Brendan McCullough | Feb 14, 08 04:01 PM

Why don't we pass a law forcing every business, seller, etc.... to lower their total prices to reflect the GST. Sellers that raise prices that coincide with the GST cut should be punished. I know in some cases this may not be possible (i.e parking meters) but if retailers want to profit excessively then we need to control this behaviour immediately. Posted by: Mark Stall | Feb 14, 08 08:14 PM

The price of gas? It went up didn't it? Now that I think about it I'm willing to bet, let's see, 1% of my gas budget that it went up. Posted by: Kris | Feb 16, 08 01:55 PM

The GST has always been known for Government Screwing Taxpayers. The stores are no different. Before the GST Stores used to have 10% 15% off sales Then the Great advertising gimmick came We’ll pay the 7% GST. Oops I just lost 3-8 % on furniture cars and what ever else I would have bought. Now they have lowered it yet again and as you pointed out the stores did not lower prices, but increased prices to round out the change. Posted by: Sue Szydlik | Feb 16, 08 05:56 PM

Penny for my thoughts..... I live in Saint John, New Brunswick and taxi cabs do not have meters and we have not seen the price drop. Bus fare has also remained the same. A restaurant I attended has not changed their cash register and is still charging 15% HST. But you know what's worse? Most of us blindly close our eyes to it and do nothing! Posted by: Lise | Feb 17, 08 11:44 AM

This is outrageous! Thank you for bringing this to everyone's attention Posted by: Farron | Feb 17, 08 12:30 PM

I believe that this GST reduction does not do much for the consumers unless you are purchasing high price items. In the case of low cost items, sellers do not want to deal with the odd penny so in most cases consumers do not save and in fact may pay more - in Toronto Chinatown, lunch meals that cost $5 or $6 including taxes, are still the same price. I have seen one case where an item was $1 (without tax) and is now $1.25 (including tax). Harper should have allocated the money for city instead and save cities for creating more bureaucracy to fund repair of failing infrastructures among other things. Posted by: John | Feb 17, 08 01:07 PM

Same thing with the GST on lottery tickets...postage stamps. The story doesn't share though one VERY IMPORTANT POINT...many of the prices on these "fixed price" rates never went up with the GST in the first place...they absorbed the tax. Your story, while worthwhile, was very biased. Posted by: Steve Scherr | Feb 17, 08 02:49 PM

Come on people get involved in this issue, it's a scandal. Not only is the GST the most ineffectual way of delivering tax savings to the Canadian public, (unless you are already in the highest tax bracket and consuming the most, vs the rest of Canadians getting squeezed who still can't get benefits because they have less disposable income to consume), you didn't think it funny that right at the time that FX rates are hurting the manufacturing sector, you don't think this particular form of tax cut was coincidental do you?? This cut essentially gives cart blanche for corporate Canada to benefit and thus show good GDP numbers globally, thus preventing international investment exodous. Don't use the excuse that a penny is not worth the time, I doubt the public felt that way in the dirty thirties! Call your MP & complain, you are getting ripped off! Posted by: Angela | Feb 19, 08 03:49 PM

Your show regarding the recent ripoff of GST reduction reminds me of the question I have had for years - who got the proceeds of the old manufacturer's tax when Mulroney brought in the GST in the first place? Posted by: Ron Profitt | Feb 19, 08 09:15 PM

Although your stories are ear-catching and interesting, it's hard to take you seriously. Your stories are always biased and one-sided, making people feel like victims by blowing stories completely out of proportion. It seems to me that you have someone with very strong personal opinions on your team attempting to sway the general public using your media. Clever, but not very believable in my opinion. Posted by: Stacey | Feb 19, 08 09:53 PM

Martin E says vending machines can't give back pennnies. How about retailers? I would suspect outside of subscriptions there is more business from a retailer then the machine. This is yet another example of how a consumption tax reduction does nothing for the economy except boost profits for the corporations. Reduce personal income taxes by the equivalent dollar amount and let me spend my savings my way Posted by: Ed | Feb 21, 08 02:02 PM

I work for a contracting company, and had to pay for a permit that our crew needed for a jobsite. The fee for this permit was still $25.00, just as it always has been. Shouldn't it be lower with the cut in GST? So even the governments are getting in on the game of raising prices and thinking they can hide it. Posted by: SEP | Mar 18, 08 06:10 AM

If retailers or sellers won't reduce prices from the GST cut then the government needs to pass a law mandating a price reduction. Marketplace provided good examples (i.e gas, theatre tickets, parking etc...). Pass a law mandating them to pass the GST cut to consumers. Posted by: Vote... | Mar 28, 08 09:40 AM

When Canada Post returned a letter to me because it was a little overweight, I was required to purchase an additional 11 cent stamp to affix to my letter. I agreed and asked to purchase the stamp. Imagine my disbelief when I was informed to pay GST of 2 cents on an eleven cent stamp. Isn't 5% of eleven cents aprox .55 of a cent? I argued a little but was told that the price was set by Canada Post and so, reluctantly I purchased the stamp for 13 cents and mailed my letter. It was only a penny or two but dammit, that's my penny not theirs ! Posted by: Scott S | Apr 2, 08 10:22 PM

Thank you Angela and Stacey! The GST cut is all about "face time" and has very little to do with cutting general taxes. We all knew that many low-cost items were simply going to pocket the difference before the first cut was announced. For those who didn't catch what Angela was saying, right now, many Canadian manufacturing companies are on hard times due to the rising value of the dollar relative to the US dollar. They are directly influenced by the GST (originally a manufacturing tax), so dropping the GST is (in a way) "cutting them a little slack". (obv. it's much more complex than that) Posted by: Gates VP | Apr 14, 08 12:22 AM

Is anyone really surprised at this sort of smoke & mirror job from the Harper conservatives? Telling us that the GST cut would "put more money back into the pockets of working class Canadians", while in reality the cut is merely a setup to pad the bank accounts of his corporate cronies. The Harper conservatives like to say they're all about accountability in government (especially while on the campaign stump), but there is a multitude of examples that prove this to be mere rhetoric. Posted by: CAESAR | May 4, 08 02:15 PM

1% GST cut vs 1% income tax cut, which one is better? Canadian voters went for GST cut last time. Let's see how the public will react next time when another party says they will give lower GST to 4%. Posted by: GST | Jun 20, 08 11:03 PM