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Harper Admits He Will Raise Low and Middle Income Taxes, Lower Basic Exemption |
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Written by LPC
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Saturday, 07 January 2006 |
The Conservatives concede a Stephen Harper government would raise the rate on the lowest tax bracket back from 15 per cent back to 16 per cent in their first budget, probably in April. As well, the basic exemption, income on which no tax is charged, would be dropped by $400 in the same budget.
But they claim that “the immediate result of cutting the GST will be $4.5 billion back in the pockets of ordinary Canadians. When the GST cut is fully implemented, the total benefit will be much greater.”
The fact is, however, Mr. Harper’s plan to raise the tax rate of Canada’s lowest income brackets in favour of cutting the GST would rob the poor to give to the rich.
The two measures that the Conservatives would rescind – the increase to the basic personal amount and the cut to the rate for the lowest income bracket – would put $4.5 billion back in the pockets of middle and lower-income Canadians in 2006-07.
Mr. Harper’s GST cut would cut a similar amount from the federal books, but Canadians would have to spend their own money in order to see any benefit, and those who spend the most would get the biggest savings.
Mr. Harper’s decision to cancel of these two Liberal tax cut measures means those Canadians who can least afford it will pay $18 billion more tax from 2006-07 to 2010-11. |
