For Immediate Release October 31, 2007

“Long Term, Bold and Broad-Based Tax Cuts
for All Canadians,” says Komarnicki

Ottawa (October 31, 2007)- Ed Komarnicki, Member of Parliament, Souris- Moose Mountain

The Government’s 2007 Economic Statement proposes $60 billion of broad-based tax relief for Canadians on everything from a further 1 percent reduction of the GST, reductions to income tax, as well as tax cuts for small businesses and corporations. These are historic, bold tax cuts, especially on the corporate side, and we are not done yet.

“Now is the time to provide additional tax relief for Canadians,” said Komarnicki. “Our strong fiscal position provides Canada with an opportunity that few other countries have to make broad-based tax reductions that will strengthen our economy and leave more money in the pockets of ordinary Canadians.”

Since coming into office, the Government has taken action that will reduce the overall tax burden for Canadians and businesses by about $190 billion over this and the next five years, bringing taxes to their lowest level in nearly 50 years.

The Prime Minister fulfills his promise to cut the GST by an additional 1 percentage-point, effective January 1, 2008. For consumers, a total savings from the 2 percentage-point reduction in the GST will amount to approximately $12 billion next year.

The Government is proposing additional tax relief for individuals and families by further reducing the lowest personal income tax rate to 15 percent from 15.5 percent retroactive to January 1, 2007. In addition, the Government is also increasing the basic personal amount exempt from taxation to $9,600 retroactive to January 1, 2007. The basic personal amount will be increased again to $10,100 on January 1, 2009.

“Canadians pay too much tax,” said Komarnicki. “What we have in this package are long term, broad-based tax cuts that provide substantial benefits by leaving more money in the pockets of all Canadians.”

For Canadian businesses, the Government will be reducing the general corporate income tax rate by 1 percentage-point in 2008 followed by ongoing reductions that will bring the tax rate down to 15 percent by 2012. To help small business, the Government is reducing the small business tax rate to 11 percent in 2008, one year earlier than scheduled.

“This is a substantial shot of adrenaline for all Canadian businesses which will lead to more jobs, increased investment and a more prosperous Canada,” said Komarnicki. “Business tax cuts stimulate further economic growth and create more jobs. These tax cuts will encourage business to do business in Saskatchewan and all of Canada.”

The Government also announced it is planning an additional debt reduction of $10 billion this fiscal year, for a total of more than $37 billion in debt relief since coming into office. This is the equivalent of $1,570 for each man, woman and child in Canada.

“Our Government is managing the economy with a view of putting Canadians first. Purchasing power will go up, take home pay will go up, more jobs will result and investment opportunities for business will increase. The tax burden will be reduced for individuals, families and business. Most Canadians will want the Government to continue in this direction,” said Komarnicki.