Economic Statement Delivers “Massive” Tax Cuts for ALL

October 31th, 2007

It’s been a half century since the federal tax burden on Canadians has been this low.

Thanks to Conservative Finance Minister Jim Flaherty’s Economic Statement this week, each and every Canadian will benefit significantly from an additional $60-billion in tax cuts. That brings the total overall tax relief for Canadians and businesses, since our Conservative Government came to office 21 months ago, to $190-BILLION!

We’ve kept our promise to cut the GST to 5%. The new rate will take effect this coming January 2008. A GST cut benefits everyone of all incomes, including those whose incomes are so low they don’t benefit when income taxes are cut. That’s why I find it perplexing that the opposition parties, especially the socialist NDP, remain opposed to a GST cut. What’s more, the GST credit will be maintained at its current level, meaning even higher benefits for low income Canadians.

A family purchasing a new $300,000 home will save $3,840 thanks to our cuts to the GST. A family spending $30,000 on a new minivan will save $600 in GST.

You’ll notice the benefit of our other tax cuts as soon as you fill out your 2007 income tax return. That’s because our increase to the basic personal amount to $9,600 is RETROACTIVE to January 1, 2007. There will be a further increase to $10,100 on January 1, 2009. The lowest personal income tax rate has been reduced to 15% also RETROACTIVE to January 1, 2007.

That’s a tax savings of $180 for a family earning $15,000 to $30,000 per year and $400 less tax for a family earning between $45,000 and $60,000.

Canadian businesses continue to flourish under the economic environment our Conservative Government has fostered. As a result, Canada’s unemployment rate is at its lowest in 33 years. To build upon this success and enhance the competitiveness of Canadian industry and business, we’ve cut the small business income tax rate to 11% in 2008 – ONE YEAR EARLIER than previously scheduled. The general corporate income tax rate will be reduced to 15% by 2012 starting with a 1-percentage point reduction in 2008 BEYOND the already scheduled reductions.

And because the cornerstone of our agenda for Canada’s economic growth is debt reduction, our Government has also announced an additional payment of $10-billion against the nation’s debt. That brings the total debt relief under our Conservative Government to $37-billion or $1,570 for each man, woman and child in the country!

In turn, that additional debt reduction means even more tax relief for you under our Tax Back Guarantee.

This Economic Statement means the take home pay for all Canadians will go up. Canadian businesses, from your local coffee shop to large corporations, will have more flexibility to create even more jobs and make further investment in their operations.

As I write this, the House of Commons is scheduled to vote in just a few hours on enshrining these economic measures into law. I don’t believe there is any MP who can justify to his or her constituents why they would vote against such sound fiscal management.