Tax reductions are an essential part of the Government’s Economic Action Plan and critical to our efforts to stimulate the economy. Reducing taxes also helps build a solid foundation for future economic growth, more jobs, and higher living standards for Canadians.

Specifically, the Economic Action Plan, which was recently passed by Parliament, promises $20 billion in new personal income tax relief over 2008–09 and the following five fiscal years. These measures will provide: immediate personal income tax relief, particularly for low-to middle-income Canadians and tax support for home owners and first-time home buyers.

The Economic Action Plan also contained measures that will help Canadian businesses surmount this challenging economic period by stimulating business investment. These measures reinforce the Government's strong record of tax relief. Taking into account previous tax reductions by this government, including those in Budget 2009, this government has reduced taxes for individuals, families and businesses by an estimated $220 billion over 2008–09 and the following five fiscal years.

A specific measure in the Economic Action Plan that will benefit every constituent in SDSG is the changes we’ve made in the income tax formula. Budget 2009 increases the basic personal amount and the upper limit of the two lowest personal income tax brackets by 7.5 per cent above their 2008 levels, effective January 1, 2009. 

The basic personal amount will be increased to $10,320 in 2009, allowing individuals to earn more income before paying federal income tax.

The upper limit of the first personal income tax bracket will be increased to $40,726 in 2009, allowing more income to be taxed at the lowest 15-per-cent rate, rather than the 22-per-cent rate. The upper limit of the second personal income tax bracket will be increased to $81,452 in 2009, allowing more income to be taxed at the 22-per-cent rate, rather than the 26-per-cent rate.

Taxpayers will begin to benefit from the proposed personal income tax reductions as soon as the Canada Revenue Agency revises its tax withholding tables, in spring 2009.

While I’ve only highlighted one area of Canada’s Economic Action Plan, there are a host of other initiatives that will surely benefit you, including the Home Renovation Tax Credit, changes to the National Child Benefit Supplement and many other measures.
I encourage you to visit www.budget.gc.ca for more information

Guy Lauzon, MP
Stormont-Dundas-South Glengarry