Article - http://www.news.gc.ca/cfmx/view/en/index.jsp?articleid=278319
On February 22, 2007, the Minister of Finance, Jim Flaherty announced that the $26 billion tax relief package included in Budget 2006 is now a law. This will create benefits for Canadians through out the country. The final budget bill received Royal Assent, and it’s called Bill C-28. Flaherty believe that the New Government have put a great effort in reducing tax rates in Canada, but he still thinks that the tax rate is too high. Therefore he planes to develop Budget 2007 that will lower the tax rate even more. His goal is to make Canada a global leader by achieving a competitive tax advantage in this area. In Budget 2006, the personal income tax rates have been lower 0.5%, the new Canada Employment Credit introduced, and a lot more.
In chapter 4, we learned about taxes in Canada, and what they tax us on depending on the kind of government. In this article, it talked about a reduction of tax in Canada and what will benefit from it. Even though this seems like something good to our country, there may also be negative effects from reducing the tax rate. Especially when Canada is in Debt right now and it’s in need of paying it off. By reducing the tax rate on citizens, it will take longer to pay off the debt, and interest will increase also. This may cost a boost in tax rate later on in the future, when Canada’s debt rise more and more. The reduction is something I must disagree with, but since I don’t have a job yet, I don’t know how it feels to get 1/4 of your pay cheque taken away.
