Here's how those $30 billion personal tax cuts work out:
Rate for lowest income tax bracket to be reduced one percentage point to 15 per cent, retroactive to last Jan. 1.
— One percentage point reduction to each of the middle tax rates by 2010.
— Increase in the income level at which the top tax rate applies, starting in 2010.
— Immediate $500 increase to the basic personal amount of income all Canadians can earn without paying federal tax.
— A Working Income Tax Benefit for low-income earners starting in 2008.
The poor people who might otherwise vote NDP get their tax cut now. The top tax bracket, whose voters are reliably Liberal, especially in Ontario (contrary to the Liberals' own rhetoric) can wait a while.
But Wimpy will gladly pay the middle class in five years for their votes today, after another election will have intervened.
In any event, this will all be irrelevant in a week's time.
Source: Globe and Mail