Easing the Tax Burden for Everyone in Stormont-Dundas-South Glengarry

January 01, 2008

Whether buying a coffee or a new home, a computer or a car, consumers will find that 2008 will be less taxing. The Government of Canada is ringing in the New Year with another GST cut. We are reducing the GST from six to five per cent beginning on January 1, 2008, the second GST cut in less than two years.

Our government promised to reduce the GST and we are delivering.

A GST cut will benefit all Canadians regardless of their age or income. It will improve consumer confidence, encourage business growth and strengthen the Canadian economy.

The total savings from the 2-percentage-point reduction will amount to approximately $12 billion next year. For people here in SDSG and throughout Canada that is more money in their pocket to spend, invest or save.

The savings to individuals and families will be significant.

• A family purchasing a new $150,000 home in Cornwall will save $1,920 in GST.
• A family spending $10,000 on home renovations in Winchester will save $200 in GST.
• A family spending $30,000 on a new minivan in Morrisburg will save $600 in GST.
  

Although the Government is reducing the GST by 2 percentage points, the GST credit will remain at its current level, translating into $1.1 billion in benefits for low income Canadians each and every year.

Since coming to office nearly two years ago our Government has taken action that will reduce the overall tax burden for Canadians and businesses by about $190 billion, bringing taxes to their lowest level in nearly a half a century.

We have provided relief in every way the Government collects taxes—personal taxes, consumption taxes, excise taxes, and business taxes, more than 60 tax cuts in total. Among the tax cuts is a commitment to reduce the federal business income tax rate from 22 per cent this year to 15 per cent by 2012. This will make Canada’s business income tax rate the lowest among the major developed economies.

Our Government is establishing a proud legacy of tax relief. This is an achievement we can all be proud of. Our Government is putting Canadians first, keeping our promises and managing the economy in an effective and responsible way.