Message For Canada – March 2008

A Responsible Budget for Canadian Families

The Canadian economy has expanded for 16 consecutive years, and Canada’s unemployment rate is at its lowest level in 33 years. Still, in a time of global economic uncertainty, we have to be responsible.

On February 26, Finance Minister Jim Flaherty tabled a balanced, focused and responsible budget for Canadian families. Budget 2008 will strengthen our economy by:

• Paying down debt: $10.2 billion in 2007-08, and over $50 billion in total debt reduction by 2012-13;
• Helping Canadians save with a new Tax-Free Savings Account (TFSA);
• Assisting workers with the $1 billion Community Development Trust;
• Providing $250 million to develop greener and more fuel-efficient vehicles in the auto industry; and
• Setting aside up to $500 million to improve public transit.

Seniors worked hard and built Canada. Budget 2008 rewards those sacrifices by:

• Raising the Guaranteed Income Supplement (GIS) exemption from $500 to $3,500;
• Investing an additional $13 million to combat elder abuse; and
• Helping unemployed older Canadians get back into the workforce through the Targeted Initiative for Older Workers.

But let’s talk taxes. Since taking office, our Government has taken action to reduce the overall tax burden for Canadians by nearly $200 billion. We have provided tax relief by:

• Cutting the GST from 7% to 6% to 5%;
• Increasing the Basic Personal Amount;
• Reducing the lowest personal income tax rate to 15%;
• Ending the marriage penalty;
• Creating a Child Tax Credit;
• Allowing pension income splitting; and
• Delivering tax breaks for parents, seniors, public transit users, post-secondary students, apprentices, small business owners and farmers.

By cutting taxes, paying down debt, rewarding seniors, assisting working families, and injecting $21 billion of stimulus into the Canadian economy this year alone, our Government is building a better Canada.