IDEAS home Printed from
   My bibliography  Save this article

Implications of the Introduction of the Goods and Services Tax for Families in Canada


  • Lori J. Curtis
  • JoAnn Kingston-Riechers


We use the Quadratic Almost Ideal Demand System and the Canadian Family Expenditure Survey to investigate the welfare change for households, particularly those with children, attributable to the introduction of the Goods and Services Tax (GST) in Canada. We calculate the welfare change by estimating the expenditure difference necessary to maintain pre-GST indirect utility. We find that two in three households and one in three low income households were made worse off by the introduction of the GST. The figures are similar for households with children. More specifically, the stated policy goal of increasing the welfare of low and middle income households was not achieved.

Suggested Citation

  • Lori J. Curtis & JoAnn Kingston-Riechers, 2010. "Implications of the Introduction of the Goods and Services Tax for Families in Canada," Canadian Public Policy, University of Toronto Press, vol. 36(4), pages 503-520, December.
  • Handle: RePEc:cpp:issued:v:36:y:2010:i:4:p:503-520

    Download full text from publisher

    File URL:
    Download Restriction: access restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Paul Blacklow & Ranjan Ray, 2003. "Intra-Household Resource Allocation, Consumer Preferences and Commodity Tax Reforms: Australian Evidence," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 425-433, December.
    2. Grady, Patrick, 1990. "An Analysis of the Distributional Impact of the Goods and Services Tax," MPRA Paper 13144, University Library of Munich, Germany.
    3. Thomas F. Crossley & Lori J. Curtis, 2006. "Child Poverty In Canada," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(2), pages 237-260, June.
    4. Creedy, John, 2001. "Tax Modelling," The Economic Record, The Economic Society of Australia, vol. 77(237), pages 189-202, June.
    5. Pendakur, Krishna, 2002. "Taking prices seriously in the measurement of inequality," Journal of Public Economics, Elsevier, vol. 86(1), pages 47-69, October.
    6. Grady, Patrick, 1991. "The Distributional Impact of the Goods and Services Tax: A Reply to Gillespie," MPRA Paper 13246, University Library of Munich, Germany.
    7. Paul Blacklow & Ranjan Ray, 2002. "Optimal Commodity Taxes in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(1), pages 45-54.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpp:issued:v:36:y:2010:i:4:p:503-520. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.