Since coming to office, our government has taken action that will reduce the overall tax burden for Canadians and businesses by $190-billion. Our tax relief measures will reduce the overall tax burden to its lowest level in nearly 50 years.
Almost three-quarters of all tax relief implemented by the government benefits individual Canadians and their families directly. Canadians are benefiting from actions such as the 2-percentage-point reduction in the GST rate as well as personal income tax relief, which includes reducing the lowest personal income tax rate to 15 per cent from 16 per cent and increasing the basic amount that all Canadians can earn without paying federal income tax.
Broad-based tax reductions are providing substantial tax savings for Canadians at all income levels, with proportionately greater savings for those with lower incomes. For example, for those families with incomes of $15,000 to $30,000, tax relief in 2008 will average $510—a reduction of 30 percent—while families in the $80,000 to $100,000 range will receive, on average, a tax reduction of $1,751, or 14 percent.
In addition to broad-based tax relief, the government has introduced measures targeted to help families, students, seniors and pensioners, workers, persons with disabilities, and communities.
For families:
- A Child Tax Credit, which will provide tax relief of up to $306 per child in 2008.
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Increasing the spousal and other related amounts to equal the basic personal amount so that single-earner families, including single parents, receive the same tax treatment as that already provided by the basic personal amount to two-earner families.
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Promoting physical fitness among children through a Children’s Fitness Tax Credit, which recognizes up to $500 in eligible fees for enrolment in a physical activity program.
For students and those who support them:
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A Textbook Tax Credit on amounts of up to $65 per month to provide better tax recognition for the cost of textbooks for students.
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Strengthening the Registered Education Savings Plan program by eliminating the annual contribution limit, increasing the lifetime contribution limit to $50,000 from $42,000, and increasing the maximum annual Canada Education Savings Grant per beneficiary to $500 from $400 to help parents save for their children’s education.
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Exempting scholarship and bursary income from tax.
For workers:
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A Working Income Tax Benefit to improve incentives for low-income Canadians to work and to lower the welfare wall by providing a refundable tax credit of up to $510 per year for individuals and $1,019 for families. More than 1.2 million low-income Canadians will benefit.
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The Canada Employment Credit, which recognizes work-related expenditures such as home computers, uniforms and supplies.
For persons with disabilities:
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The Registered Disability Savings Plan, which will help parents and others save to ensure the long-term financial security of a child with a severe disability. This will provide parents with greater peace of mind regarding the financial security of their loved ones when they can no longer care for them.
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Addressing outstanding policy recommendations of the Technical Advisory Committee on Tax Measures for Persons with Disabilities by extending eligibility for the Disability Tax Credit, and increasing the Child Disability Benefit and the maximum amount of the Refundable Medical Expense Supplement.
For communities:
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The Public Transit Tax Credit for the purchase of eligible transit passes to encourage individuals to make a sustained commitment to public transit use.
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A capital gains tax exemption for donations of publicly listed securities to all registered charities to encourage charitable giving.
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An exemption from capital gains tax on donations of ecologically sensitive land to encourage more Canadians to make ecogifts—thereby promoting conservation.
Canadians pay too much tax. Under the Liberals, working families and seniors were squeezed while the Liberal government rewarded Liberal insiders and mismanaged our tax dollars. Under the strong leadership of Prime Minister Stephen Harper, Conservatives are cutting taxes to build a better Canada. |
