Economic Update means lowest taxes in 50 years

October 31, 2007

OTTAWA – Renfrew-Nipissing-Pembroke MP Cheryl Gallant says the Economic Update from Finance Minister Jim Flaherty is a treat for constituents that has produced the usual tricks from the Opposition. “The Official Opposition says it is against the economic update but will not vote against it. It must be Halloween with this kind of spooky behaviour occurring,” said Gallant. “Sadly, none of the other parties will vow not to raise taxes again if they get into power. So a higher GST could come back to haunt Canadians,” cautioned Gallant.

“The Economic Update is about reducing taxes for all Canadians and meeting the Conservative goal of restoring honesty to government. We have fulfilled our promise to reduce the GST to 5 per cent from 7 per cent. This means that every time you stand in line to buy something, you will spend less money, whether you’re buying a cup of coffee or a new computer. The GST rebate for new housing remains at current levels, as do the GST credits for low income Canadians,” noted Gallant.

“Another commitment we made is to pay down the debt, which is where most of the surplus goes. But every Canadian benefits from this because of the Conservative tax back guarantee: every dollar saved in interest is put back into the pockets of Canadians. As well, the basic personal tax deduction will go down as of January 2007, so people will not start paying federal income tax until they earn over $9,600. The lowest personal income tax for the 2007 tax year will go down from 15.5 per cent to 15 per cent.”

“Businesses are on track for a five year tax reduction and will see their rates go from 22 per cent to 15 per by 2012. We’re accelerating the small business income tax rate reduction to 11 per cent by 2008, one year earlier than scheduled – that makes Canadian businesses the least taxed in the world,” said Gallant. “That means more jobs here in the Valley and more money in your pocket.”
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