Tuesday, May 02, 2006

Hands Not In My Pocket

Finance Minister Jim Flaherty has delivered the 2006 budget, and much to the relief of many overburdened Canadian taxpayers, there's a little off just about everybody's load including:

Cutting the GST from 7% to 6% on Canada Day;
Reducing the lowest personal income tax rate from 16% to 15.5%;
Raising the qualifying small business rate income from $300,000 to $400,000;
Tax credits for hiring new apprentices, tools and textbooks;
The $1,200 child care benefit (beer and popcorn for everyone!);
The public transit pass tax credit; etc, etc.

All this and more can be found here.

Thousands of subway-riding Torontonians (like myself) will be very happy to have the Metropass tax credit; I don't know if it will raise ridership, but it might get current passengers to buy passes instead of tokens every week.

And credits for hiring new apprentices makes perfect sense at a time when we're facing shortages of skilled tradesmen.

I'll have more once I've had a further look at the budget papers.

3 comments:

Anonymous said...

Unfortunetely, when I did my taxes for 05, the 1% tax break was added.
Now it's going up on July 1st. .5%

HearHere said...

Unfortunately the Liberals little pre-election campaign trick to lower one of the tax rates (which affected just 22% of taxpayers) from 16% to 15% was NOT voted on by parliament and therefore is NOT legal in law. Goodale threw that one in in November just before the government fell. It was an afterthought for electioneering.

It cost them $350,000 to mail out an addendum to the tax filers to add it for the 2005 tax filers.

SOOOO, the Harper government is letting this stand, an ILLEGAL not passed by the house into law 1% reduction. The rate BY LAW is, in fact, still 16%.

The budget has to pass into law and the Conservatives intend to lower this by .5% BY LAW.

Of course the Liberals and pundits make this look like they are raising this tax from the ILLEGAL 15% rate which is exactly why the deathbed Liberal tax reduction was done - not for the people - for political gamesmanship.

Good to see that Harper is not biting and playing that game.

Adam said...

That's the dumbest spin I've ever heard. How can a majority government ILLEGALLY pass a tax cut?