28 tax reductions . . . and one hike
1. GST reduced by one percentage point to 6 per cent on July 1.
2. New Canada Employment Credit of $500, rising to $1,000 next year, for work-related expenses such as uniforms and home computers.
3. Income Tax Act to be amended so new $100-a-month child-care payment can be claimed by the lower-income spouse.
4. Family fishing boats become eligible for a $500,000 lifetime capital-gains tax exemption.
5. Excise duties repealed on the first 500,000 litres of wine made from Canadian-grown crops and reduced on beer from small and medium-sized breweries.
6. Excise tax repealed on jewellery made in or imported into Canada, clocks and articles made with semi-precious stones.
7. A $500 tax credit for parents whose children enroll in organized physical activity.
8. Tax credit on the purchase of monthly transit passes starting in July, meaning about $150 a year in tax relief for frequent transit users.
9. Exemption from capital-gains tax on donations of publicly listed securities to public charities.
10. Increases to $2,000 from $1,000 in the maximum amount of pension income that can be used to calculate the pension-income credit.
11. Increases the maximum annual Child Disability Benefit to $2,300 from $2,044 effective July 1 and coverage extended by reducing the rates at which the benefit is cut as family income rises.
12. Reintroduces the mineral- exploration tax credit to solidify recent exploration gains.
13. Raises the maximum amount of the refundable medical-expense supplement to $1,000 from $767 for the 2006 tax year.
14. Apprenticeship job-creation tax credits for employers, who will get $2,000 per apprentice.
15. A $1,000 apprenticeship grant for apprentices who take part in approved programs.
16. Tools deduction allowing tradespeople to deduct up to $500 for the cost of tools exceeding $1,000.
17. Textbook tax credit, worth about $80, for postsecondary students.
18. Removes the $3,000 limit on the tax-exempt status on bursaries, scholarships and fellowships so that all such income is tax free.
19. Reduces the parental contribution on Canada Student Loans so that about 30,000 more students with family incomes between $65,000 and $140,000 are eligible.
20. Donations of ecologically sensitive land under the Ecogift program will be exempt from capital-gains tax.
21. Reduction in the effective tax rate on dividends, matching a promise the Liberal government had made in an attempt to level the playing field between income trusts and other corporations.
22. Lowering of the general corporate income-tax rate to 19 per cent from 21 per cent by 2010.
23. Increases the amount of small-business income eligible for a 12-per-cent tax rate to $400,000 from $300,000, as of Jan. 1, 2007. The rate falls to 11.5 per cent in 2008 and to 11 per cent in 2009.
24. Eliminates the corporate surtax for all corporations as of Jan. 1, 2008. The surtax had previously been eliminated only for small and medium-sized companies.
25. Accelerates the capital cost allowance for forestry bioenergy.
26. The federal capital tax, which under the Liberals was to have been eliminated in 2008, will disappear this year at a cost of $795-million.
27. Eliminates so-called double taxation of dividends from large corporations at a cost of $375-million this year and $310-million next year.
28.Gradually raises the basic personal amount exempt from income tax to $10,000 by 2009.
ONE HIKE
1. Reduces the lowest personal income-tax rate to 15.5 per cent July 1. However, that is half a percentage point more than the rate currently in effect.
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