The significance of taxation on investments and growth has been thoroughly debated in the political and academic circles. The supporters of tax cuts argue that reducing tax rates favor economic growth by creating incentives to save, invest, and work. Several years back, the Canadian government imposed a tax measure that reduced the GST by 2%. The measure was rationally accepted by the general public as well as some policy observers. The tax measure triggered hot debates that were meant to determine the significance of the GST reduction. The CGA-Canada was among the groups that conducted a rigorous analysis that thoroughly evaluated the impact of the GST reduction on the nation’s economic growth. Their research indicated that GST reduction exhibited
