This April 2008 when you’re completing your income tax returns, you will realize the benefits of the massive tax cuts introduced by our government in previous budgets.

Budget 2008 also builds on the Economic Update, last November, as we reduce the tax burden to the lowest level since the Diefenbaker government. We’ve delivered over $190 billion in tax relief over this and next five years.

You have a reduction in the GST to 5%, lower personal income taxes and savings delivered through a series of targeted tax relief measures.

The government is reducing the federal debt by more than $37 billion, including $10.2 billion this fiscal year which means additional, permanent income tax reductions for you in the future.

New! Tax Free Savings Account.

A central tax saving measure in Budget 2008 is the introduction of a new Tax-Free Savings Account beginning in 2009. It is the first of its kind in Canadian history.

As a Canadian over the age of 18, you will be permitted to contribute up to $5,000 in this account to help you save.

This flexible, registered, general-purpose account will allow you to watch your savings, including interest income, dividend payments and capital gains, grow tax free and remain tax free when it is withdrawn.
Infrastructure and jobs.

A permanent extension of the federal Gas Tax funding to municipalities large and small from coast to coast for essential and dependable infrastructure funding, which will affect communities from Fauquier to Fernie.

A further $1 billion in support for Canada’s manufacturing sector with an additional three years accelerated capital cost allowance treatment for new investment in machinery and equipment, which is already producing tens of thousands of net new jobs every month, all across Canada.

The Conservative government will continue to invest in BC in the $100 million/year mitigation programs for pine beetle devastation.

We are spending millions to open new world markets for our wood.

We are establishing a billion dollar trust fund for communities hit by the downturn.

We are ending the practice of EI premiums going into general income and implementing a new EI premium rate setting mechanism to ensure EI rates are managed on a truly break even basis;

We’re allocating $250 million to support the automotive industry to assist in developing greener more fuel efficient vehicles, and $440 million for research and innovation to secure Canada’s leadership in the global marketplace;

Seniors and students.

An increase for the Guaranteed Income Supplement exemption from $500 to $3500 to support seniors, which means if a senior wants to add to their income, they will be able to earn an additional $3000 / year before their GIS is affected.

$350 million for a new Canada Student Grant Program, beginning in 2009;

Safer communities.

$400 million for provinces and territories to recruit 2,500 new police officers;

This budget makes strategic investments at a time that demands prudence, discipline and sound fiscal management with the government delivering on key issues that matter to Kootenay Columbia residents.
For MUCH MORE good news, take a look at my webpage or call my office.