First, I'll give some background on this story. As you know, we can in Canada are to the left of you. We have a Liberal movements, a Conservative movement, and a Socialist movement. The Liberal party held office for the last 12 years. While in power, they demolished unemployment to 5.8%, brought a massive surplus, and brought new rights like gay marriage, decriminalized marijuana possession and religious freedom. This government was widely held in most Canadian minds as a sort of halcyon period.
Now, after a scandal, wherein three people of that party funneled $550 million to companies they had friends running for sub-par services, the government fell. IT'S NUTS I KNOW! Accountability is crazy, to think that Halliburtonism would kill a government. I as a member of both the Liberal and Conservative party (I know hold on, I'm getting to it) was disgusted at the idea of corruption and was not the list bit upset or surprised when our party fell. They deserved it. They had become to secure and had gained a sense of entitlement.
When the Conservative party won a minority government, many of my Liberal friends were worried. They thought of American conservatism. Suspension of rights, tax cuts for the rich, and warmongering. I was not so worried. I knew that instead of undoing the good work of the Liberal party, they'd pick up the torch and keep running and that's exactly what they've done. First, they vowed not to reduce ANY services - a promise they kept. Second, they vowed to reduce ANY rights - a promise they kept. Thirdly, they vowed not to plunge the country into debt - a promise they kept.
So now they've taken the Liberals hard-earned surplus and done something amazing with it. They took half of it and put it against the debt, so we'll have less debt servicing from now on. The other half, they used to cut taxes. AND they did it not only without cutting services, but also increasing healthcare spending and increasing greenhouse-gas reduction. Mr. Harper has also pledged to sign the next treaty slated to replace the Kyoto accord. Most of all: these tax cuts, were not just for the rich. They were ACROSS the board.
This is what TRUE Conservatism looks like. This is the Canadian model that Stephen Harper preached of when he told people on his South American trade mission not to look to the American model or the Venezuelan model. This Conservatism... It doesn't have a theocratic face. It doesn't have a militarily aggressive face. It doesn't have a right-stomping face. It's meant to work hand in hand with the left, with each party doing what it does best. God, at moments like this I'm remembered why I love my country.
I posted an article from the CBC explaining the tax cuts below.
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Finance Minister Jim Flaherty has tabled a motion that calls for $60 billion in personal and corporate tax cuts over the next five years, including a further cut in the GST to five per cent, effective Jan. 1.
News of the tax cuts came in an economic statement delivered Tuesday afternoon by Flaherty. Normally, the statement contains little more than an update on the government's fiscal position. Not this time.
Highlights of economic statement
* GST cut one percentage point to 5%, effective Jan. 1, 2008
* Personal income tax cut retroactive to Jan. 1, 2007, cutting lowest marginal tax rate to 15 per cent from 15.5%
* Jump in basic personal exemption to $9,600, retroactive to Jan. 1, 2007, increasing to $10,100 in 2009
* $10 billion in federal debt paydown
* One percentage point cut in corporate tax to 19.5% in 2008
* Reduction in corporate tax rate to 15 per cent by 2012
* Small business income tax reduced to 11% by 2008
* Total tax cuts of $60 billion over 5 years
In addition to cutting the GST by another percentage point, the Conservatives are proposing to cut personal income taxes retroactive to Jan. 1, 2007. The lowest marginal tax rate would fall to 15 per cent from 15.5 per cent. That represents a rollback of a rate hike implemented by the Conservatives last year.
As well, Ottawa is proposing an almost $700 jump in the basic personal tax exemption to $9,600, also retroactive to Jan. 1, 2007. That would increase to $10,100 in 2009. The basic personal exemption is the amount of money Canadians can earn before paying tax.
"The individual tax cuts will mean money in Canadians' pockets, as soon as they file their income tax returns for 2007," Flaherty said in a news conference following his statement.
The government estimates the personal tax cuts will total $45 billion through 2012.
"Taxes haven't been this low since Lester Pearson was prime minister," Flaherty said. "This is an achievement we can all be proud of."
Finance Department documents reveal that the country's treasury is swimming in money. Finance minister Jim Flaherty now projects the 2007-08 surplus at $11.6 billion, before the debt paydown of $10 billion. Finance Department documents reveal that the country's treasury is swimming in money. Finance minister Jim Flaherty now projects the 2007-08 surplus at $11.6 billion, before the debt paydown of $10 billion.
(Tom Hanson/The Canadian Press)
The government is also proposing to pay down the federal debt by $10 billion this year.
The government estimates that as a result of its tax changes, the 2008 tax savings will be:
* Almost $180 for the average family earning between $15,000 and $30,000 a year.
* Almost $400 for the average family earning between between $45,000 and $60,000 a year.
* Just over $600 for the average family earning between $80,000 and $100,000 a year.
Corporate taxes will also be cut — by $14.1 billion over the next five years.
The corporate income tax rate drops by an additional percentage point to 19.5 per cent in 2008, falling in steps to 15 per cent by 2012. By that time, Canada will have the lowest corporate tax rate among the major industrialized economies, the government said.
The scheduled cut in the small business income tax rate to 11 per cent will be brought forward to Jan. 1, 2008, from 2009.