Canadian government announces $60 billion in tax cuts

Finance Minister Jim Flaherty announced $60 billion in tax cuts, including:

  • GST reduction from 6% to 5% effective January 1, 2008
  • Personal income tax rate reduction for the lowest tax bracket from 15.5% to 15%, retroactive from January 1, 2007
  • Personal income tax reduction from an increased personal exemption, effective retroactively from January 1, 2007
  • Reduced employment insurance premiums for both employers and employees effective January 1, 2008
  • 1/3 reduction of the corporate and small business tax rate to 15%, implemented over 5 years

Liberal leader Stéphane Dion, NDP leader Jack Layton, and Bloc leader Gilles Duceppe all oppose the broad-based tax cuts, preferring smaller targeted tax cuts and more spending on government programs.

Unlike the NDP and Bloc, the Liberal party intends to stage another whipped abstention to ensure there will not be an election over the issue.

16 thoughts on “Canadian government announces $60 billion in tax cuts

  1. But of cores the Dion Liberals have a different approach for the economy than the Harper Conservatives do. But the corporate tax needs to be lowered for us to compete in this market world.

  2. Dion wants to put the corporate tax lower then 22% as well so whats the deferents.
    I think its stupid not too, it well be good for job creation when you reduce taxes on Productivities like what the Liberals and Conservatives have been saying for a long time now other counters have been doing that recently so we should too thats how we can stay competitive in this market world.

  3. “The Smaller Government The Better” I believe that the Conservatives and green party are the only 2 at this time that believe in smaller government though the green party is viewed as a left wing party right now but a lot of the green party’s polices seem fiscally conservative, I have also seen changes of the Liberals under Dion lately moving there polices to a fiscally conservative path but I’m not all that shire.

  4. The thing is the government is awash in cash so I don’t think they’ll be raising taxes anytime soon. And I personally don’t think the government should be paying citizens to spy on their neighbours.

    By the way, Canadians are already taxed on the purchase electronic storage media such as CDs, hard drives and memory cards. As a result it is legal for Canadians to download copyrighted material. Its not legal to upload it, however.

  5. Why don’t they raise taxes for a good cause.
    They should have tax exemption point system, for example getting 1.5% decrease for turning in people who do illigal activities.
    A 2% increase in return for free music downloding. Hows that for tax relief.

  6. Taxes are a concern for people that have the most. I want higher taxes and solid spending of taxes not corruption and TV ads. This is clear voter bribe. Spend it on health care and things that really help us not a little cash back for most Canadians and a lot of cash for a few.

  7. The poppies are for Remembrance Day … Canadians don’t show their patriotism as much as Americans, but we are particularly proud of our contribution in the world wars, so I guess no politician wants to be the last to put on the poppy.

  8. What’s up with the poppies? I’m in the USA, so I’m not quite sure — I know you have Remembrance Day in 11/11, right? Why the poppies now?

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