Could Lower GST Mean Lower Standards?

I am on the PMO's (Prime Ministers Office's) mailing list for news releases. Early this morning I got a email from the PMO saying that Stephen Harper is planning to fulfil his promise to lower GST again this year to 5%. Many people may think this is good because they don't have to pay as much when you're buying something such as a book. For instance, if you're buying a book it might say it's $12.00, with 5% GST it would only be an extra $0.60 extra so the total would be $12.60. If Canada had 25% GST a $12 book would cost $15, 3 dollars extra. So that could be the good side of less GST.

Some studies show though that lower GST could mean worse health care, worse education, higher poverty rates, more drug use etc. But if you have higher GST it's exactly the opposite. With higher GST it could mean better health, better education, lower poverty rates and less drug use. This is a section of a study by the Canadian Centre of Policy Alternatives that explains higher standards in the Nordic Countries:

According to the study, tax cuts are disastrous for the well-being of a nation’s citizens. For example, the high-tax Nordic countries have:
lower rates of poverty, more equal income distribution, and more economic security for their workers;
- higher GDP per capita;
- higher rates of household saving and net national saving;
- greater innovation, including a higher percentage of GDP spent on research and development;
a higher ranking on their growth competitiveness by the World Economic Forum;
- higher rates of secondary school and university completion; and
- less drug use, more leisure time, and higher life satisfaction.

To see the study click here.

So I think that it would be a lot better if they started raising the money for GST so that we could all have a higher quality of life. I think that if we have to pay more for GST it's worth it if we will all have better health care, education, lower poverty and less drug use.