Lowering Canadians Tax Burden to its Lowest Level in 50 Years

By: Ted Menzies, Macleod MP

Canadians here in Macleod and throughout Canada will have more money in their pockets as a result of our Government’s Fall Economic Statement. We have provided an historic tax relief package, bringing the federal tax burden to its lowest level in nearly a half a century.

Our Government is establishing a proud legacy of tax relief. We have provided relief in every way the Government collects taxes—personal taxes, consumption taxes, business taxes and excise taxes. More than 60 tax cuts totalling $190 billion over this and the next five years.

Our Fall Economic Statement builds on this legacy by providing broad-based tax relief for individuals, families and businesses.

At the heart of this effort is an additional 1-percentage-point reduction in the GST, moving it from 6 per cent to 5 per cent effective January 1, 2008. This is a permanent tax cut for all Canadians. Individual savings will be significant:

• A family purchasing a new $300,000 home in Okotoks will save $3,840 in GST.

• A family spending $10,000 on home renovations in Stavely will save $200 in GST.

• A family spending $30,000 on a new minivan in Fort Macleod will save $600 in GST.

We are also taking steps to reduce personal income taxes. In the Fall Economic Statement we are increasing the basic personal amount to $9,600 retroactive to January 1, 2007. The basic personal amount will be increased to $10,100 on January 1, 2009. This is the total amount all Canadians can earn without paying federal income tax.

In addition, our Government is reducing the lowest personal income tax rate to 15 per cent from 15.5 per cent retroactive to January 1, 2007.

Together, these income tax cuts will deliver relief on spring income tax returns:

Families earning between $15,000 and 30,000 will pay on average almost $180 less in tax in 2008 as a direct result of the tax measures announced in the Fall Economic Statement.

Families earning between $45,000 and $60,000 will pay on average almost $400 less in tax in 2008 as a direct result of the tax measures announced in the Fall Economic Statement.

Families earning between $80,000 and $100,000 will pay on average $602 less in tax in 2008 as a direct result of the tax measures announced in the Fall Economic Statement.

Our Government is also putting business taxes on a five-year track downward. We are ushering in a new era of declining business taxation in Canada. It will be a steady, predictable decline that businesses can count on and can plan on.

In the Fall Economic Statement we are cutting the corporate income tax rate by 1-percentage-point reduction in 2008. This will be followed by ongoing reductions that will bring the tax rate down to 15 per cent by 2012, from more than 22 per cent today.

With these reductions, Canada’s general federal corporate income tax rate will fall by one-third between 2007 and 2012, and Canada’s corporate tax rate will become the lowest among the major industrialized economies.

Canada has emerged as a shining example in an economic universe of rapid change and uncertainty. We are leading the way with our tax cuts, our debt reduction and our focused and responsible spending.

Our fundamentals are strong and we are well positioned to weather any sudden economic storms. But we must continue to look ahead and keep moving forward. Our Government is pressing ahead and building on our achievements. This way, we will make our strong economy even stronger and ensure a brilliant future for the people in Macleod and throughout Canada.