Canadians Pay Less Tax as of January 1!
December 31, 2005

Effective January 1, 2006, Canadians will keep more of the money they earn thanks to Liberal tax cuts.

This year, every Canadian will be able to earn $8,848 before paying any federal tax. This is an increase from $8600 in 2005 and $8000 in 2004.

As well, all of the tax brackets will increase by 2.2 per cent as of January 1, to ensure that inflation does not cause Canadians to pay more income tax. This “indexation” of the tax system was a significant benefit for Canadians included in the Liberal government’s $100-billion tax cut in 2000 – the largest tax cut in Canadian history.

In addition, the tax rate that applies to the lowest bracket has been reduced by one percentage point – to 15 per cent from 16 per cent.

Together, these tax reductions mean that an average Canadian family of four earning $60,000 will pay $500 less in 2006.

In addition to these significant tax reductions, the Energy Cost Benefit will deliver $250 in January to every person receiving the National Child Benefit Supplement. This will ensure that low- and modest-income Canadians with children are able to deal with the effects of higher energy costs this year.

Seniors who are receiving the Guaranteed Income Supplement will also receive a payment in January of $125 for a single senior and $250 for a couple.

We are committed to responsible tax relief, and Canadians can rest assured that a Liberal government will continue this approach.

A whole 240+ dollars. Excellent!

I could buy an XBox!