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.