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The short term ramifications of the GST were large. Mulroney's government became one of the least popular in Canadian history, and the personal animosity towards his government played a significant role in the defeat of the 1992 referendum on the Charlottetown Accord. It also led to the election of a strong Liberal majority under Jean Chrétien in 1993.

Chrétien, in the election campaign, promised to repeal the GST, which the Liberals had denounced so vociferously while it was the Official Opposition. Once in office, however, the Liberals discovered that the GST was all but essential if Canada were to erase its budget deficit and restore its economy. Thus to great controversy both within and without the party the Liberals chose to keep the GST. In response Liberal MP John Nunziata voted against the budget and was expelled from the party. Heritage Minister Sheila Copps, who had personally promised to oppose the tax, felt honour-bound to resign and seek re-election. She was re-elected with ease, however, as was the Liberal government in the 1997 election.

Instead of repeal, the Chrétien government attempted to restructure the tax and merge it with the provincial sales taxes in each province. Only three provinces signed on, however. Nova Scotia, New Brunswick, and Newfoundland now have the 15% Harmonized Sales Tax instead of separate GST and PST.

Today the GST is not much of an issue, other than with the general public who are aware of the absence of a federal sales tax in the United States (despite the existence of a hidden 3% U.S. federal tax). It is widely regarded by politicians as an inescapable fact that such a large revenue generator cannot be done away with. Many also argue that a switch towards heavier consumption taxes on the European model has helped the Canadian economy become more efficient and competitive with lower-priced goods for the international market. It can also be claimed that the "in-your-face" nature of the GST has kept Canadians acutely aware of their taxation. This has led to a major change in political culture so that deficit financing is no longer considered an option by the federal and provincial governments.

-Goods and Services Tax (GST) Wikipedia, the free encyclopedia

It made us more competative and was a revenue generator that the government needed. You may not like it, but it has helped everyone wheather you know it or not.

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