Ottawa, February 19th, 2008
2008-015
Government of Canada Releases Annual Tax Expenditures and Evaluations
Report
Related document:
Tax Expenditures and Evaluations
The Department of Finance today released its annual Tax Expenditures
and Evaluations report. The report provides estimates and projections of
the revenue impacts of all special federal tax measures designed to support
the economic and social priorities of the Government. The revenue estimates
and projections in the report reflect all tax changes announced to date,
including the following changes from Budget 2007 and the 2007 Economic
Statement:
Reducing the goods and services tax rate to 5 per cent from
6 per cent.
Reducing the general corporate income tax rate to 15 per cent by 2012,
giving Canada the lowest statutory tax rate in the Group of Seven (G7).
Increasing the amount all Canadians can earn without paying federal
income tax to $9,600 in 2007 and 2008, and to $10,100 in 2009.
Reducing the lowest personal income tax rate to 15 per cent from
15.5 per cent as of January 1, 2007.
Introducing a new non-refundable child tax credit based on an amount
of $2,000 for each child under the age of 18 years.
Implementing a $550-million Working Income Tax Benefit. This
refundable tax credit will strengthen incentives to work for low-income
individuals and families, and help them over the welfare wall.
Increasing the lifetime capital gains exemption to $750,000 from
$500,000 for small business owners, farmers, fishermen and fisherwomen.
This year's edition includes a report that assesses the impact of the
reduction in the statutory tax rate on corporate income from 28 per cent to
21 per cent that was announced in Budget 2000 and implemented over the
20012004 period. The study provides clear evidence that investment was
strongly and positively influenced by the 20012004 tax reductions. The
business tax reductions announced in Budget 2006, the Tax Fairness Plan,
Budget 2007 and the 2007 Economic Statement are expected to have similar
beneficial effects on investment.
Tax Expenditures and Evaluations may be viewed on the Department of
Finance website. Printed copies are available for $15.70 from the Department
of Finance Distribution Centre at 613-995-2855.
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For further information, media may contact:
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
David Gamble
Media Relations
Department of Finance
613-996-8080
