Saskatchewan's federal politicians are scrapping over whether Saturday's big tax changes are good or bad.
OnJuly 1, Ottawa is lowering theGST to six per cent from the current seven.
It's also increasing the personal income tax rate on the first $36,000 of income — to 15.5 per cent from 15 per cent.
Saskatoon-Wanuskewin MP Maurice Vellacott, a Conservative, said the GST cut benefits everyone, including people on low or modest incomes, because everybody pays the tax.
July 1 also marks the day when Canadian families will start receiving $100 per month for each child under the age of six, he said. The first cheques for the Universal Child Care Benefit go out on July 20.
However, Liberal MP Ralph Goodale, who represents the Regina-area Wascana riding, said it's just Conservative spin for the government to suggest taxes are about to go down. Not only is the tax rate going up, but the basic personal amount that each taxpayer can earn tax-free is going down by about $200.
Those two moves cancel out the reduction in the GST, said Goodale, who had been Canada's finance minister before the January election.
Thanks to the higher income taxes, the overall tax burden will increase about $1 billion over the next two years, he claimed.
Prime Minister Stephen Harper's government has also pledged to cut the GST by another percentage point — at a later date.