The following News Release or Speech has just been posted on the Finance Canada Site
Ottawa, February 19th, 2008
The Department of Finance today released its annual Tax Expenditures and Evaluations report. The report provides estimates and projections of the revenue impacts of all special federal tax measures designed to support the economic and social priorities of the Government. The revenue estimates and projections in the report reflect all tax changes announced to date, including the following changes from Budget 2007 and the 2007 Economic Statement:
* Reducing the goods and services tax rate to 5 per cent from 6 per cent.
* Reducing the general corporate income tax rate to 15 per cent by 2012, giving Canada the lowest statutory tax rate in the Group of Seven (G7).
* Increasing the amount all Canadians can earn without paying federal income tax to $9,600 in 2007 and 2008, and to $10,100 in 2009.
* Reducing the lowest personal income tax rate to 15 per cent from 15.5 per cent as of January 1, 2007.
* Introducing a new non-refundable child tax credit based on an amount of $2,000 for each child under the age of 18 years.
* Implementing a $550-million Working Income Tax Benefit. This refundable tax credit will strengthen incentives to work for low-income individuals and families, and help them over the welfare wall.
* Increasing the lifetime capital gains exemption to $750,000 from $500,000 for small business owners, farmers, fishermen and fisherwomen.
This year’s edition includes a report that assesses the impact of the reduction in the statutory tax rate on corporate income from 28 per cent to 21 per cent that was announced in Budget 2000 and implemented over the 2001–2004 period. The study provides clear evidence that investment was strongly and positively influenced by the 2001–2004 tax reductions. The business tax reductions announced in Budget 2006, the Tax Fairness Plan, Budget 2007 and the 2007 Economic Statement are expected to have similar beneficial effects on investment.
Tax Expenditures and Evaluations may be viewed on the Department of Finance website. Printed copies are available for $15.70 from the Department of Finance Distribution Centre at 613-995-2855.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
RELATED DOCUMENT: Tax Expenditures and Evaluations
SOURCE DOCUMENT: Department of Finance Newsroom