Issues

Issue - Taxes
	The Liberal government increased the basic personal exemption by $500 in last November's fiscal update, and trimmed the tax rate at the bottom income bracket to 15 per cent from 16 per cent. Under the changes, the federal government says that a family of four with two earners who gross $60,000 a year will shave $934 off their tax year Meanwhile, a single parent with one child who earns $50,000 a year will save $700 a year. The government says that its new tax initiatives will mean that an additional 500,000 Canadians will not pay any taxes During the 2006 election campaign, Martin promised to increase to the current caregiver tax credit by 50 per cent, to $15,000; as set out under a $500-million Liberal plan for seniors On the campaign trail, the Grits announced they would increase the lifetime capital gains exemption by 50 per cent from $500,000 to $750,000 Martin also promised to kill a $975 landing fee on immigrants Martin has promised to make permanent a five-year deal that gives municipalities a cut of the federal gas taxes Paul Martin’s governing Liberal government announced new tax guidelines that make dividends more attractive for investors but leave tax policy on income trusts unchanged During the 2006 election campaign, Martin said the Liberals would commit an additional $6 billion to child care when the first allotment runs out in 2009 -- increasing the Liberals' commitment to $11 billion through 2015 The Liberals will allow the tax-exempt transfer of a fishing enterprise from one generation to another The party vows to maintain a strong fiscal and investment climate by ensuring an internationally competitive tax system, especially relative to the United States The party will ramp up the maximum contribution rates for RRSPs and eliminate the foreign property restriction The Liberals will reduce general corporate tax rates and scheduling phase out of the corporate surtax A Liberal government will create a working income tax benefit to supplement the earnings of low-income workers, and to encourage individuals to move from social assistance to the labour force

	During the 2006 election campaign, the Conservatives confirmed they would reverse Liberal personal income tax cuts that took effect Jan. 1 They would allow Canadians to get their rebate for 2005 before raising the rate on the lowest tax bracket back to 16 per cent in their first budget and reducing the basic personal exemption by $400 The Tories vow to make good on the business tax relief the Liberals promised in the 2005 budget and fiscal update, which will cut the tax rate from 21 per cent to 19 per cent in 2010, and which will eliminate the business surtax on January 1, 2008 Stephen Harper vows his party would reduce the GST by one per cent immediately. Then, another one per cent would be shaved off in the following four years -- ultimately bringing the GST down to five per cent Conservatives vow to remove the capital gains tax on stock donations During the 2006 election campaign, Harper said that people who buy monthly transit passes would be awarded with a 16 per cent tax credit on the purchase On the campaign trail, Harper announced that a Conservative government would immediately slash the $975 immigration landing fee in half, and would work to reduce it to $100 in its first mandate. Harper has also pledged to cut the small business tax rate from 12 to 11 per cent over five years Also raise the threshold for the small business tax rate from $300,000 to $400,000 Double the amount of pension money that can be sheltered from income tax Allow parents who register their kids (under 16 years of age) in organizations that promote physical fitness to claim a federal tax credit on registration fees to a maximum of $500 per year per child Another $250 million in annual tax credits to fund a community child-care investment program, which the party says will create 125,000 new child-care spaces over the next five years The Tories also vow to maintain the current regulations governing insurance marketing by the chartered banks Pay down the national debt by a minimum of $3 billion each year. Implement a $1,000 Apprenticeship Incentive Grant to help new apprentices cover the cost of tools, boots, and work accessories Implement a Tools Tax Deduction of up to $500 for existing tradespeople self-employed and provides tax fairness for the employed Implement an Apprenticeship Job Creation Tax Credit of 10 per cent of an apprentice’s wages for two years to a maximum of $2,000 to support businesses that establish apprenticeship positions to create more jobs Develop tax incentives to encourage private-sector builders to build or refurbish affordable rental units Give public transit riders a federal tax credit to cover the cost of their monthly transit passes. Parents will also be able to receive this credit for their dependent children Raise the pension income tax amount that is eligible for a federal tax credit from $1,000 to $2,000 per year in 2006, and to $2,500 in five years

	The NDP has committed to proceeding with the increased basic personal credit amounts and the decrease in the lowest personal income tax rate that were announced by the federal government in November During the 2006 election campaign, Jack Layton said he opposed new tax cuts promised by the Liberals and Conservatives Ensure all Canadians who make less than $15,000 do not pay federal income tax Increase the Child Tax Benefit to $4,900 per child and allow Canada's poorest families, who don't pay tax, to qualify Guarantee full indexing of tax brackets and credits Remove the GST from family essentials, including children's clothing and medicine, school supplies, books, magazines, female hygiene products and medical equipment Make the disability tax credit and medical expenses tax credit fully refundable Abolish security fees on air travel Make the EI account a separate trust fund Cancel all tax treaties with tax havens like Barbados Index the GST exemption threshold for small and home businesses to the rate of inflation Prohibit the practice of letting corporations deduct fines for environmental infractions or unsafe workplaces from their taxes Require that stock options be fully expensed in corporate accounting

	Recover billions of dollars paid to Ottawa to address the fiscal imbalance between the provincial and federal governments Enable Quebecers to choose taxation priorities Change the federal tax system so Quebecers can keep a bigger share of their paid income tax in Quebec, which will be used to fund social programs Abolish the GST on some goods such as books and children’s clothes Impose a surtax on large oil company profits Increase federal transfers to provinces to fund education, childcare, health and environment and provide greater support to rural areas Minimize the gulf between the very wealthy and the very poor by reducing taxes on the middle-income class and levying heftier taxes on the wealthiest citizens Make it harder for companies to hide cash in tax havens Increase federal transfers for the poorest families and individuals (for example old age pension, etc.) Stop using the federal surplus to pay down the national debt Ottawa should transfer $630 million to the Quebec government so that it can set up its own parental leave program. Have a refundable tax credit for all families with children under 18 years of age Insure that GIS (Guaranteed Income Supplement) is made available to all eligible old age persons. Ottawa should reimburse the $3.2 billion that it did not give out.

	During the 2006 election campaign, the Green Party pledged to eliminate tax breaks to all fossil fuel sectors. Lower taxes for Canadians earning less than $45,000 per year Establish all-party task force to study corporate tax rates between Canada and the United States Close loopholes that permit the establishment of offshore tax havens by Canadian companies Establish new Parliamentary Budget Office to provide independent public estimates of government revenues and expenditures Transfer federal tax points to sustain specific social services such as health care on strict provincial guarantees that these funds will be allocated to such services and that such funds will be used to reduce the dependency provincial governments have developed to revenue from gambling Remove GST on education supplies and specific family products Expand child tax credits and benefits Create tax incentives for businesses to implement flexible schedules and on-site childcare Increase taxes on tobacco products, alcohol and junk food Develop tax incentives for companies to meet the standards of gender and pay equity Recognize and value the unpaid work of women through reforms to our tax system Reduce taxes for small and medium sized businesses in their first 5 years of existence Impose significant pollution taxes on harmful chemicals until they can be eliminated

Issue - Taxes