Ottawa - Today, the government passed a motion in the House of Commons to implement wide-ranging tax relief for Canadians.
“This motion will cut taxes for pensioners, families, students, users of public transit and each and every worker in Canada, particularly tradespeople, apprentices and fishers. Businesses, both large and small, will also benefit and will be better positioned to compete and prosper in the global economy,” stated Gordon O’Connor MP for Carleton-Mississippi Mills.
This government motion includes the following income tax measures:
- The new Canada Employment Credit.
- The new Textbook Tax Credit.
- The new tax credit for public transit passes.
- The new deduction for tradespeoples’ tool expenses.
- A complete exemption for scholarship income received in connection with enrolment at an institution which qualifies the student for the education tax credit.
- The new Children’s Fitness Tax Credit.
- A doubling, to $2,000 from $1,000, of the amount on which the pension income credit is calculated.
- An extension of the $500,000 lifetime capital gains exemption, and various intergenerational rollovers, to fishers.
- The new Apprenticeship Job Creation Tax Credit.
- A reduction of the current 12 per cent small business tax rate to 11.5 per cent for 2008 and to 11 per cent thereafter.
- An increase, to $400,000 from $300,000, of the amount that a small business can earn at the small business tax rate, effective January 1, 2007.
- A reduction of the minimum tax on financial institutions.
- A proposal to lower the income tax rate on large corporation dividends received by Canadians, making investments in shares of corporations more attractive.
- A proposal to reduce excise duties for Canadian vintners and brewers.
“I am pleased that Canada’s New Government continues to act on its commitment to provide meaningful relief for Canadian taxpayers. This government is by no means finished in our efforts to improve our tax system for the benefit of Canadian families and businesses. We intend to go further to provide tax relief to benefit all Canadians,” concluded O’Connor.
This government motion entitled Notice of Ways and Means Motion and explanatory notes are available on the Department of Finance website at
www.fin.gc.ca or by calling (613) 995 – 2855.
For further information: Gordon O’Connor’s, P.C., M.P., Parliament Hill Office 992-1119