Tax Cuts!

The Conservative Government announced yesterday $60 Billion in tax cuts. Here they are:
- Cut the GST to 5% effective Jan 1, 2008
- Cut the lowest personal tax rate to 15%, from 15.5%
- Increase the basic personal exemption to $9,600 and then $10,100 by 2009
- Cut the Corporate tax rate one point, to 19.5%
- Cut the Corporate tax rate to 15% by 2012
- Drop small business rate to 11%
- Pay off an additional $10 billion worth of debt

The result of these cuts helps everybody, so naturally, the NDP hate it. They'd prefer those who work were taxed to the teeth (so that they'll flee to the US faster) and that those who don't, get bigger handouts. Unfortunately for the NDP, the real world doesn't work that way. It's great to see money going toward the debt, which will save some more money in interest, I believe around $700 million a year, which can be reinvested in the debt. Harper is doing great things for the country, cutting everyone's taxes (right away, every gets an extra $671, since the exemption goes up from $8,929 to $9,600).

What does $671 buy you? Let's think about this. If you are a couple who both pay taxes, a trip to the Dominican Republic, from Toronto, costs $516, so essentially, everyone in Canada who earns more than $9,600 can now afford to go to the DR, and have $155 to spare. Another option is to use that saving to make a payment for your apartment. You could also buy a Sony PS3 with 80gb hard drive, which would set you back $499, before taxes. Of course, with the drop in the GST, you will save $5 on your purchase, so you can go to Starbucks and buy yourself a Latte to keep you company on your January (that's when the tax cuts will come into place) drive home.

The Liberals, naturally, don't like this plan, because it's another act by the Conservatives of fulfilling broken campaign promises by the Liberals. Remember in 1993 when Chrétien came to power? He claimed to be the knight in shining armour who would slay the evil GST in its crib... well, the GST is a teenager now, and the Conservatives are giving it a haircut.

Thankfully, we have sensible people in our government, as we can sit back and dream of how each and every one of us will spend our latest savings, savings that apply to every Canadian, and help everyone's bottom line.