Lauzon: SDSG to Benefit from New Tax Cuts

April 03, 2009

Cornwall-On April 2nd, Ministers Blackburn and Toews announced that the tax changes outlined in our government’s Economic Action Plan came into effect on April 1, 2009.

The Conservative Government has moved quickly to make available the $2.4 billion in tax reductions that it had proposed in the 2009 Budget.  This amount is part of the total of $20 billion in personal income tax relief over five years that the Government of Canada promised to Canadians.

Important tax measures have been introduced for Canadians from all walks of life, and in particular for low and middle-income earners, families, and seniors. These measures will put more money back into the pockets of Canadians.

The Canada Revenue Agency has already issued revised payroll tables to employers to reflect the tax reduction measures, and employees should see a difference in the net amount on their paycheque resulting from the increase to the basic personal amount and the changes to the tax brackets.

In addition to income tax cuts, the basic personal amount has been increased from $9,600 in 2008 to $10,320 in 2009, allowing Canadians to earn more income before paying federal income tax. This amount will continue to be indexed beginning in 2010, so that it increases every year in accordance with inflation rates.

“The Conservative Government is focused on the economy and is putting the needs of Canadians first,” said local MP Guy Lauzon. “Starting this week Canadians will begin holding on to more of their money with each paycheque due to the personal income tax cuts contained in our government’s Economic Action Plan.”

The upper limit of the two lowest personal income tax brackets has risen by 7.5 percent above 2008 levels, so that Canadians can earn more at lower tax rates.

For a family with a total income of $15,000 to $30,000 in 2009, the tax savings will average $168.

For a family with a total income of $45,000 to $60,000 in 2009, the tax savings will average $356.

For a family with a total income of $60,000 to $80,000 in 2009, the tax savings will average $473.

“These income tax cuts are particularly beneficial to a riding like Stormont-Dundas-South Glengarry, where our residents are predominantly middle-class,” added Lauzon. “These measures should do a great deal to stimulate the local economy.”