One of the surprising outcomes of the Canadian dollar reaching parity with the U.S. greenback is a renewed attack on reducing the GST a second point. The Canadian Chamber of Commerce last month called on the Conservative government to break its election promise to cut the GST to 5% and instead lower business taxes. The normally somber chamber of commerce has joined the "Save the GST Club."

Perrin Beatty, the group's new president, is worried our high flying loonie makes it tougher for Canadian manufacturers to compete internationally. It is a legitimate concern - an increase to business costs vis-à-vis our competitors will squeeze sales and impact manufacturers. His solution: "I would like to see the government put a priority on cutting costs of doing business across the Canada-U.S. border." He favours accelerating Ottawa's tax-reduction plan, but "not the GST."

Mr. Beatty is wrong to link corporate tax relief to scuttling the next GST reduction.

First, both can be done when Ottawa is swimming is cash. The federal surplus was $13.2-billion two years ago, $14.2-billion last year, and has already topped $7.8-billion only four months into the current fiscal year. The federal government has ample room to reduce taxes. It should do so.

Second, Ottawa has a spending problem not a revenue problem. Why does the chamber think it better policy to limit or swap tax relief rather than reign in spending Even if Ottawa was not accumulating surplus atop of surplus, the objective should be on reducing federal expenditures, which have already increased by a staggering $24.4-billion under Conservative rule.

Does Mr. Beatty think it wise to grow the size of the federal government by 14% Or is the chamber simply unwilling to make the tougher public case that expenditure growth and the high tax rates that fuel spending is the real roadblock to cutting the cost of doing business, not a measly one point GST cut It would be a mistake to limit the scope of tax relief for even higher spending levels.

Third, public opinion matters and Mr. Beatty's idea to cancel another GST cut reinforces the view the business lobby is willing to trade away personal tax gains for its own tax cut. Tax relief should not be restricted to corporate Canada. Business and individuals are overtaxed and should pay less tax. If Mr. Beatty remains concerned Ottawa does not have the fiscal capacity to lower business taxes further, he ought to instead focus on scrapping business subsidies, something Canadians know as corporate welfare.

Since the Conservatives were elected 20 months ago, every argument has been floated to discredit lowering the GST. It is not a "smart tax cut." It does not help the poor. Now, dollar parity means Ottawa cannot cut this tax. Canadians aren't having any of it. They understand the surplus means they are overtaxed. As such, many taxpayers are in agreement with Milton Friedman's maxim that any tax cut, any time, is a good thing.

Mr. Beatty's chamber of commerce illustrates the problem of lobbyist and elite opinion-makers casually tossing aside important campaign promises. Voters expect key commitments to carry some weight. Most believe it is essential for politicians to keep their word.

Politicians that do not can face significant trouble - if not outright hostility - from voters in the subsequent election. Just look at Premier Dalton McGuinty. Four years ago he told Ontario voters, "I won't cut taxes, but I won't raise them either." Today, they remember this broken promise and Mr. McGuinty is struggling to win a second mandate.

The Harper government has already upset some investors by taxing income trusts. The about-face will certainly cause his party to lose votes in the next federal election. Imagine the firestorm of protest if the Conservatives broke a promise that benefited all Canadian consumers.

Mr. Beatty's policy proposal is neither necessary nor viable. Politicians should not break their words, and the Canadian Chamber of Commerce should not ask them to.