Canadians here in Vegreville-Wainwright and across the country will have more money in their pockets as a result of our Conservative Government’s Fall Economic Statement. We have provided an historic tax relief package, which will bring the federal tax burden to its lowest level in nearly half a century. (Details are provided at the end of this Report.)
Our Government is establishing a proud legacy of tax relief. Since coming to office 21 months ago, we have reduced the tax burden of Canadians by about $190 billion. We have delivered this relief across the board—cutting personal taxes, consumption taxes, business taxes and excise taxes. We are continuing to build on this legacy by providing an additional $60 billion in broad-based tax relief over this year and the next five years for individuals, families and businesses.
Central to our tax relief plan outlined in the Economic Statement was another one point reduction in the GST (from 6% to 5%), effective January 1st, 2008. Our Government made a campaign commitment to reduce the GST by two percentage points over four years. We are delivering on that commitment – and we are doing it two years ahead of schedule. Reducing the GST will benefit all Canadian consumers. In fact, the combined two-percentage-point reduction in the GST will amount to approximately $12 billion in tax savings next year.
Individual savings from the total GST cut will be significant: a family purchasing a new $200,000 home can expect to save $2,560 on the purchase, while a family spending $30,000 on a new minivan will save $600 in GST.
We are also taking significant steps to reduce personal income taxes, by increasing the basic personal exemption amount to $9,600 (retroactive to January 1, 2007), followed by a further increase on January 1, 2009, to $10,100. (This is the total amount all Canadians can earn without paying federal income tax.) Additionally, the Government has reduced the lowest personal income tax rate from 15.5% to 15%, again retroactive to January 1, 2007.
As a result of these tax relief measures, a family earning between $45,000 and $60,000 will pay about $400 less in tax in 2008.
Businesses haven’t been forgotten either. We are making an immediate one-percentage point reduction in the corporate income tax rate in 2008.
This will be followed by ongoing reductions that will bring the tax rate down to 15% by 2012.
We recognize small businesses are an important pillar of Canada’s economy, and we believe that they are the economic engine of our communities. We are accelerating the small business income tax rate reduction to 11% by 2008, one year earlier than scheduled.
Clearly, this Conservative Government stands alone in Parliament in our efforts to let Canadians keep more of their own money. I would like to point out that, instead of supporting our Government’s effort to lower Canadians’ taxes, the NDP and the Bloc voted against our tax relief package and for keeping higher taxes. Jack Layton’s NDP accused the government of “gutting” Canada by giving Canadians a tax break. Apparently, he and his party believe higher taxes are good for the country – regardless of the burden that places on individual Canadians.
Because Stéphane Dion’s Liberal Party is weak and fears an election, the Liberals once again abstained on this important vote, showing they are prepared to place their own political priorities before tax relief for Canadians. Incredibly, Mr. Dion went so far as to say that his Liberal party would consider raising the GST again if they were elected to government!
Canada’s Conservative Government is proud of our record and continued commitment to tax relief. We understand that this is why Canadians elected our Conservative Government, and we are proud to be delivering on our commitments to Canadians. Under this Government, the economy is growing, we have the lowest unemployment rate in 33 years, and we are cutting taxes to help Canadians save. Our tax relief measures will give Canadians the increased freedom to spend, save and invest – in their families and their futures.
