Page M6 April 11, 1990. This Week FACE TO FACE The Goods and Service Tax, to be introduced on January 1 of 1991 has drawn widestpread criticism across the country. Many British Columbians have also voiced their displeasure with the new tax, among them Ken Georgetti, president of the B.C. Federation of Labour. He says the tax will hurt those who GST will hurt women most By KEN GEORGETTI n January of next year the Mul- roney government will impose a seven per cent Goods and Servic- es Tax on almost everything we purchase. This unfair and punitive tax is unnecessary. Worst of all, it will hurt those who can least afford it the most. Many women and children will find them selves slipping further into poverty because of the GST. _ It is no secret that the lowest paid workers in our province are mainly women. It is also a sad reality that women head up most single-parent families. I am dismayed when I see how little money these families have on which to survive. The average 1988 income for a two- earner family was $51,780. In that same year, a single- parent family headed by a woman had to live on $19,750. Yet this family which earns less than 40 per cent of the first will have to pay the same seven ~ per cent tax on children’s shoes, on haircuts, on books and on home heat. Too many B.C. women and their children exist at the poverty line. Women still earn, on average, only 65 cents for every dollar earned by man. The vast majority of women are in jobs today where it is safe to say that they are being discriminated against in their pay envelopes. That injustice will continue until employ- ers are forced to pay to women equal pay for work of equal value. Pay equity must be a priority. It concerns me greatly when I think about where single-parent women, who are already underpaid, will find another seven per cent to pay for the Goods and Services Tax. I do not think it is there to be found and that means their children will have to do without KEN GEORGETII some basics because of the GST. What is our provincial government doing to help ease the burden on women? Nothing. They have not lob- bied the federal government for great- er tax credits to lower-income ear- ners, nor have they lowered provincial income tax rates for those middle and lower income families. They have not addressed the widespread inequity that exists in women’s wages. Almost every provincial and federal government has introduced, or is ex- amining, pay equity legislation which will reduce the wage gap between men and women. Such legislation is not even on the agenda of the Social Credit government. Indeed, Premier Vander Zalm created a new “Ministry of Women” last year but its minister, Car- ol Gran, do- esn’t consider wage fairness for women to be an issue at all. Lastly, women who are raising children on their own need ade- _quate _child- care in order to go out and earn a decent living. In -our province, the government has failed to keep up with the demand for quality, affordable daycare. In fact, it has actually cut back on these services in many areas. If the Goods and Services Tax were applied equitably and fairly to all Canadians and corporations, some of its sting would disappear. But British Columbia women, who cannot count on their provincial government for tax fairness, for wage fairness or for fair access to childcare will be the front- line targets of the GST. We need a government in B.C. that will stand up to Ottawa on our behalf and tell Brian Mulroney to stop this tax. As much as that though, we need an honest and fair government that represents all of us equally, not just the chosen wealthy few. i single parent can least afford it - women and children at the low end of the scale. Mary Collins, federal minister responsible for the status of women and “buddy” MP for the Victoria riding says the new tax is fair and there are provisions to assist low-income families. GST — a finer tax system, By MARY COLLINS he suggestion is sometimes made that low-income, single parent families headed by women will be particularly disadvantaged by the proposed Goods and Service Tax. I would like to set the record straight. Scheduled to take effect on January 1, 1991 and replace the hidden and outdated federal sales tax, the pro- posed Goods and Services Tax will make the tax system fairer for all Canadians, regardless of gender. The GST Credit is the fairest and simplest way of protecting lower — and modest — income Canadians. Families earning less than $30,000 will pay less tax than they do now. Most families are headed by women and constitute a large part of this group. By using the credit mechanism, assistance can be targeted to those who need it most. The GST Cre- dit -will -pro- vide benefits to some 8.7 million fami- lies and indi- viduals. Three- quarters of families head- ed by single parents or seniors will have more after-tax income. Calculated along with the regular income tax return, the amount of the credit will be based on the previous years income and family status. Every 1989 income tax form con- tained a one-page application for the GST Credit. Even if individuals do not pay income tax they should still fill out this form to be sure to get the credit. The first credit cheque will be deliv- ered in December 1990, before the GST takes effect on January 1, 1991 and in advance of household expenses being incurred. Credit benefits will be paid in advance four times a year. The basic adult credit will be $190 and the credit for children will be MARY COLLINS $100. Single parents will be entitled to a full adult credit of $190 for one depen- dent child. In addition, single adults, including single parents, will be able < claim an additional credit of up to 100. . For example, a single mother with two children and $20,000 of net in- come would be entitled to one adult credit of $190, one equivalent-to- married credit for one child of $190, one child credit of $100, and the $100 single supplement. The total GST ° Credit entitlement for this individual would be $580: Both the credit amounts and the threshold will be indexed to increases in the Consumer Price Index over three per cent. One of our fundamental objectives in replacing the current feder- al sales tax with the Goods and Services Tax is to ensure that the bur- den of tax is distributed - fairly. The GST meets our commit- ment to en- sure that women and men earning ~ less than $30,000 will be better off under the GST: Other aspects of the GST will also benefit lower — and modest—income Canadians. While the GST will apply to most goods and services at a single rate of seven per cent, a significant proportion of their expenditures will not be taxed. No GST will be charged on basic groceries; medical devices; prescrip- tion drugs; residential rents and ex- isting houses; loans, mortgages and insurance policies; health and dental care including hospital care and nurs- ing Services; most education services; and day-care, legal aid and municipal and passenger ferry services. As I indicated, the GST will make the tax system fairer for all Canadi- ans, regardless of gender. This Week This Week wants to ’ An Island Publishers Newsmagazine V8W 1M9 #30-727 Johnson Street, Victoria, British Columbia Jim Cunningham, Publisher Tony Kant, Editor Koglen Moodley, Production Manager 381-3484 _ 1327 Beach Drive at Oak Bay Marina OATERS: CLEAN OUT YOUR LOCKERS AND JOIN US: APRIL SATURDAY 24 buy, sell and enjoy. Dees new and used marine supplies at fantastic savings. 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