Fall Economic Statement Is Good News For Taxpayers

November 01, 2007

Taxpayers here in Renfrew-Nipissing-Pembroke 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. Since coming to office 21 months ago, we have reduced the tax burden of Canadians by about $190 billion. We have delivered this relief in every way the Government collects taxes—personal taxes, consumption taxes, business taxes and excise taxes.

Our Fall Economic Statement builds on this legacy by providing an additional $60 billion in broad-based tax relief over this and the next five years for individuals, families and businesses.

At the heart of this effort is an additional one-percentage-point reduction in the GST, moving it from seven per cent when we took office to five per cent effective January 1, 2008. This is another promise made, promise kept, and is a permanent tax cut for all Canadians. Individual savings will be significant:

• A family spending $10,000 on home renovations in Renfrew will save $200 in GST.
• A family spending $30,000 on a new minivan in Petawawa will save $600 in GST.
  

Both Stéphane Dion and his Finance Critic have publicly admitted they are actively considering an increase to the GST. It’s clear that Dion would need to raise the GST in order to fulfill billions of dollars in spending promises made since the last election. The party that broke its promise to cut the GST has become the GST party! Taxpayers in Renfrew-Nipissing-Pembroke never had a clearer choice: strong leadership and lower taxes with the Conservatives or weak leadership and higher taxes with Dion.

We are 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. The basic personal amount is what you keep before federal income tax kicks in.
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 and 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.

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. We must never go back. Our Government is pressing ahead and building on our achievements. This way, we will make our strong economy even stronger and ensure a solid future for the people in Renfrew-Nipissing-Pembroke and all Canadians.