Flaherty Welcomes Earlier Tax Freedom Day
The following News Release or Speech has just been posted on the Finance Canada Site.
Ottawa, June 6, 2009
OTTAWA – June 6, 2009 – The Honourable Jim Flaherty, Minister of Finance, was pleased to welcome Tax Freedom Day today, as it occurs three days earlier in 2009 than in 2008. Calculated each year by the Fraser Institute, Tax Freedom Day marks the day to which the average Canadian had to work to pay their total tax bill. In 2009, the Fraser Institute has calculated that Tax Freedom Day is today—June 6th. In 2008, Tax Freedom Day fell on June 9th.
“Our Government’s commitment to lower taxes is long-standing, and has been backed by action in every one of our budgets,” said Minister Flaherty. “We have been working to reduce the tax burden on Canadians since the day we took office, and as a result Tax Freedom Day for the average Canadian family has steadily decreased. Even in today’s global recession, we have provided tax relief that has left more money in the hands of families and businesses across Canada, giving the economy a boost when it needs it most.”
Tax relief actions that the Government has taken include:
* Personal Income Tax Cuts—The Government has cut personal income taxes for four years in a row, including a reduction in the lowest rate from 16 per cent to 15 per cent, and increases in the amount that can be earned tax-free—the Basic Personal Amount—to $10,320 by 2009.
* GST Cuts—The Government cut the GST from 7 per cent to 5 per cent, helping all Canadians save money on nearly every purchase that they make.
* Tax-Free Savings Account (TFSA)—Canadians can now contribute up to $5,000 a year to a TFSA. Capital gains and other investment income earned in a TFSA will not be taxed.
* Child Tax Credit—For every child under the age of 18, families can claim a tax credit amount of $2,089 in 2009 through the Government’s Child Tax Credit.
* Seniors’ Tax Savings—The Government increased the Age Credit amount by $1,000 in both 2006 and 2009, introduced pension income splitting and doubled the pension income credit—allowing seniors to save more on their tax bill.
“Our Government has also brought forward significant tax relief for businesses large and small, and taken steps to make our entire tax system more competitive internationally,” said Minister Flaherty. “As the economy recovers, the tax relief we have provided will help Canada emerge from the global recession stronger than ever.”
For More Information:
Office of the Minister of Finance
SOURCE: Dept of Finance Newsroom
Calculate Your Own Personal Tax Freedom Day
Today is Tax Freedom Day for the “average” Canadian … but when is it for you personally? Check out Fraser Institute’s Tax Day Calculator and find out for yourself!