
Tory plan would scrap Liberal tax cut on low income earners CBC \|\| January 09, 2006 A Tory plan to raise personal income taxes on low income earners is part of an overall tax strategy that will result in more tax relief for Canadians, Tory MP Jason Kenney said Friday. Kenney was reacting to a CBC News story that revealed part of the Tory tax plan if they take power is to reverse a Liberal tax cut introduced before the election. "Our priority is broader and deeper tax relief than what the Liberals are willing to offer," Kenney told CBC News Online. Last November, before calling the election, the Liberals cut personal income taxes – a one per cent reduction to the lowest tax bracket, from 16 to 15 per cent, and an increase of $500 to the basic personal exemption. The cuts will mean a tax rebate for 2005, as less tax is being knocked off Canadians' paycheques for 2006. The Conservatives voted against those tax cuts in November, but they became law. Late last year, Conservative Leader Stephen Harper's staff told CBC Online the Conservatives would let the tax cuts stand if they win the election. But the Conservatives called CBC this week to say that while they would allow the Liberal tax cut to stand for last year, meaning Canadians will still get that tax rebate, they intend to immediately raise personal income taxes if they are elected later this month. Article Posted at www.KnowledgeDrivenRevolution.com The Conservatives say 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. A Tory official acknowledged to CBC News that would likely mean taking back the money taxpayers are saving on their paycheques for the first four months of this year. The Tories refused to be interviewed on camera for the story. But Kenney later told CBC News Online Friday that this information is not new and referred to Harper's Dec. 1 news release regarding the GST cut. "We would suspend [the Liberals] future measures in order to deliver broad-based and responsible tax relief, which will ultimately save Canadians more in their taxes and will be affordable in terms of the delivery of federal services," the release said. "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 release said. Kenney said they voted against the Liberal tax cuts because they disagreed with their fiscal priorities, adding they would have "spent smarter and cut taxes deeper." The Tories have also said that their own tax package has not yet been fully announced. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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Tory plan would scrap Liberal tax cut on low income earners

CBC || January 09, 2006

A Tory plan to raise personal income taxes on low income earners is part of an overall tax strategy that will result in more tax relief for Canadians, Tory MP Jason Kenney said Friday.

Kenney was reacting to a CBC News story that revealed part of the Tory tax plan if they take power is to reverse a Liberal tax cut introduced before the election.

"Our priority is broader and deeper tax relief than what the Liberals are willing to offer," Kenney told CBC News Online.

Last November, before calling the election, the Liberals cut personal income taxes – a one per cent reduction to the lowest tax bracket, from 16 to 15 per cent, and an increase of $500 to the basic personal exemption.

The cuts will mean a tax rebate for 2005, as less tax is being knocked off Canadians' paycheques for 2006.

The Conservatives voted against those tax cuts in November, but they became law. Late last year, Conservative Leader Stephen Harper's staff told CBC Online the Conservatives would let the tax cuts stand if they win the election.

But the Conservatives called CBC this week to say that while they would allow the Liberal tax cut to stand for last year, meaning Canadians will still get that tax rebate, they intend to immediately raise personal income taxes if they are elected later this month.

Article Posted at www.KnowledgeDrivenRevolution.com

The Conservatives say 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.

A Tory official acknowledged to CBC News that would likely mean taking back the money taxpayers are saving on their paycheques for the first four months of this year.

The Tories refused to be interviewed on camera for the story. But Kenney later told CBC News Online Friday that this information is not new and referred to Harper's Dec. 1 news release regarding the GST cut.

"We would suspend [the Liberals] future measures in order to deliver broad-based and responsible tax relief, which will ultimately save Canadians more in their taxes and will be affordable in terms of the delivery of federal services," the release said.

"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 release said.

Kenney said they voted against the Liberal tax cuts because they disagreed with their fiscal priorities, adding they would have "spent smarter and cut taxes deeper."

The Tories have also said that their own tax package has not yet been fully announced.

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