Finance Minister Jim Flaherty has tabled a motion that calls for $60 billion in personal and corporate tax cuts over the next five years, including a further cut in the GST to five per cent, effective Jan. 1.
News of the GST cut came in an economic statement delivered Tuesday afternoon by Flaherty. Normally, the statement contains little more than an update on the government's fiscal position. Not this time.
In addition to cutting the GST by another percentage point, the Conservatives are proposing to cut personal income taxes retroactive to Jan. 1, 2007. The lowest marginal tax rate would fall to 15 per cent from 15.5 per cent.
As well, Ottawa is proposing an almost $700 jump in the basic personal tax exemption to $9,600, retroactive to Jan. 1, 2007. That would increase to $10,100 in 2009. The basic personal exemption is the amount of money Canadians can earn before paying tax.
Corporate taxes will also by cut — by $14.1 billion over the next five years.
The government is also proposing to pay down the federal debt by $10 billion.
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Government's explanation of tax changes
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News of the GST cut came in an economic statement delivered Tuesday afternoon by Flaherty. Normally, the statement contains little more than an update on the government's fiscal position. Not this time.
In addition to cutting the GST by another percentage point, the Conservatives are proposing to cut personal income taxes retroactive to Jan. 1, 2007. The lowest marginal tax rate would fall to 15 per cent from 15.5 per cent.
As well, Ottawa is proposing an almost $700 jump in the basic personal tax exemption to $9,600, retroactive to Jan. 1, 2007. That would increase to $10,100 in 2009. The basic personal exemption is the amount of money Canadians can earn before paying tax.
Corporate taxes will also by cut — by $14.1 billion over the next five years.
The government is also proposing to pay down the federal debt by $10 billion.
Full story
Government's explanation of tax changes
What's your view of these tax cuts?
More...
