Ottawa, June 16 2009
Archived - Finance Minister Flaherty Highlights Progress on Tax Relief from Canada's Economic Action Plan
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During an appearance today before the House of Commons Standing Committee on Finance, the Honourable Jim Flaherty, Minister of Finance, highlighted the multitude of measures taken by the Government under the Economic Action Plan that are already reducing the tax burden on individuals and businesses across Canada.
"Through Canada's Economic Action Plan our Government is providing the critical tax relief necessary to help encourage the growth required to restore confidence in the economy and help create jobs for Canadians," said Minister Flaherty. "The relief in the Plan builds upon and reaffirms our commitment to lower taxes. Measures introduced by this Government since 2006 will provide $220 billion in relief to individuals, families and business over 2008-2009 and the following five fiscal years. Of this amount, tax relief proposed in the Economic Action Plan totals more than $20 billion."
Canada's Economic Action Plan provides immediate and enduring tax relief:
- Increased child benefits will start to flow in July, providing up to $436 per year for a low income family with two children, making raising children more affordable.
- Tax relief for low- and middle-income seniors has been put in place, providing up to an additional $150 in annual tax savings, to help our seniors thrive in retirement.
- The Government is collaborating with the provinces and territories to enhance the Working Income Tax Benefit, effective for 2009. This will further reduce the welfare wall by helping ensure that more low-income Canadians are financially better off as a result of getting a job.
- Tax assistance of up to $1,350 in support of home renovations and improvements is helping stimulate the economy and encouraging investment in Canadian homes. The Canada Revenue Agency has received more than 700,000 enquiries about the Home Renovation Tax Credit through its website and by telephone.
- Small businesses can retain more of their earnings for reinvestment, expansion and job creation through an increase in the amount of small business income eligible for the reduced federal income tax rate of 11 per cent to $500,000 in 2009 from $400,000.
- A two-year 100-per-cent capital cost allowance (CCA) rate for investments in computers is helping businesses adopt newer technology at a faster pace.
- The extension of the temporary 50-per-cent straight-line accelerated CCA rate to manufacturing or processing machinery and equipment acquired in 2010 and 2011 is helping businesses in the manufacturing and processing industries make necessary equipment purchases and position themselves for long-term success.
- The one-year extension of the temporary 15-per-cent Mineral Exploration Tax Credit supports mineral exploration activity across Canada, helping to keep our mining industry growing.
"The tax reductions in the Plan reinforce the Government's ambitious agenda of tax relief aimed at creating a tax system that improves standards of living and investment in Canada," 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 is coming earlier every year. 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."
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
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