Canada’s Finance Minister highlights Tax breaks for Canadians

October 18, 2010

Ottawa - The Honourable Jim Flaherty, Minister of Finance, today highlighted the tax measures that the Government of Canada has implemented to reduce the tax burden on Canadians.

“The tax reductions undertaken by the Harper Government, including those in Canada’s Economic Action Plan, are an essential part of our Government’s effort to stimulate the economy and create or maintain jobs,” said Minister Flaherty. “Lower taxes help ease the financial pressure on individuals, families and businesses and help build a solid foundation for future economic growth. Lower taxes also stimulate individual spending, which helps to protect and create jobs.”
Key tax breaks for Canadian families, individuals and small businesses include:

• All Canadians—even those who do not earn enough to pay personal income tax—are benefiting from the 2-percentage-point reduction in the Goods and Services Tax rate.
• All taxpayers are benefiting from the reduction in the lowest personal income tax rate to 15 per cent from 16 per cent.
• The Tax-Free Savings Account is improving incentives to save through a flexible, registered general-purpose account that allows Canadians to earn tax-free investment income.
• A reduction of the federal income tax rate applying to qualifying small business income to 11 per cent in 2008 and an increase in the amount of income eligible for this lower rate to $500,000 in 2009.

Actions taken by the Government since 2006, including those in Canada’s Economic Action Plan, will reduce taxes on individuals, families and businesses by an estimated $220 billion over 2008–09 and the following five fiscal years.