Canadians: Watch Your Wallets Get Bigger!

I have to say, I've always been a proud Canadian. But these days, at least economically, it's really not a bad time to be a Canadian. Our dollar is up to that of the U.S. (though I'm aware that will slow business in the coming year) and now our taxes are about to go down yet again. Using a plan introduced 2 years ago by the Liberals, the Conservative government plans for the GST to get 1 point knocked off once more to 5%. Also, as the Canadian Taxpayers Federation estimates, most Canadian families will save over $1000 on their income taxes. That's over $1012.86 US! (Sorry, couldn't help it) Certain provinces like Quebec (that's me!), British Columbia and Newfoundland will also be introducing their own tax cuts. Businesses should be benefiting as well with corporate tax rate decreasing from 22.12% to 19.5% and slated to decrease to 15% by 2012. 

But not all is good news as some economists believe that these tax measures will benefit those whom have money to spend (a.k.a. the wealthy). They're not wrong. Lowering the GST benefits those who make big purchases (cars, houses, etc.), not everyday ones. John Williamson, the federal director for the Canadian Taxpayers Federation said, "Given that Ottawa continues to run large budgetary surpluses, the federal government could do a lot more to help income tax payers in the years ahead." I say that given their current streak, the possibility of an election followed by yet another minority government and a predicted slowdown in the economy, they probably will. Either way, I say, Canadians rejoice in the increased size of your wallets!

D.E.

Source: CBC News