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Originally Posted by OTA in Winnipeg
I thought he said he was using it to drop the PST back to 7%.
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Is it just a coincidence that the amounts generated in Carbon Tax over the next two years is roughly the same as the amount lost in raising the Exemption? At the end of the day what he says doesn't really matter.
The exemption lowered taxes, the carbon tax increased them, lower PST lowers tax revenue. When that time comes they will need to do something to increase revenue. I have no idea what though, maybe just take the hit to the deficit? That would mean more cuts coming in the second term.
Personally I would rather see the PST stay where it is and balance the budget quicker. That way we could start running a surplus sooner and move to consciously improving services with value for money initiatives that improve services for all Manitobans equally.