Conservative Government Keeps Promises

Devolin Column
(July 13, 2006)

On the same day Canadians across the country joined together to commemorate our nation’s 139th birthday, a number of Conservative promises made during the last federal election became reality.

On January 23, our Conservative government was elected on a platform constructed of many specific commitments made to the people of Canada. On July 1, less than six months later, many of those commitments were realized.

First, Canadians saw one of the largest tax cuts in the country’s history when the Goods and Services Tax (GST) went from 7 percent to 6 percent.

During the campaign, you’ll recall that there was much debate about income tax cuts versus consumption tax cuts. Given that 32% of Canadians do not pay federal income tax, Conservatives pointed out that only consumption tax cuts are truly universal. The bottom line is that our cut to the GST means more money in the pocket of every single person in Canada.

As a result of the GST cut, Canadians will save $3.5 billion in 2006-07 and about $5.2 billion in 2007-08. When a Canadian family buys a $200,000 house, they will save $1,280. When a family buys a $30,000 car they will save $300. Over the course of a year, this will add up to significant savings for every Canadian family.

Canada Day brought another reason for families to celebrate because parents of children under six years old will begin to receive the Universal Childcare Benefit -- $1,200 per year for each child under six -- to help them cope with the cost of child care. Obviously, $100 each month will not cover the entire cost of childcare or replace the income of a stay-at-home parent, but it is a critical step in the right direction for providing true choice in child care for every Canadian family.

Canadian workers also have a new reason to celebrate this month. That’s because Canada’s new government is delivering on the Conservative campaign promise to reduce federal income tax for working Canadians.

The Canada Employment Tax Credit came into effect on July 1st to lower taxes for all working Canadians and help them cover the costs of work related expenses such as uniforms and home computers.

Canada Day also marked the introduction of the first elements of our Made-in-Canada strategy that will begin to make real reductions in greenhouse gas emissions, improve the quality of the air we breathe, and reduce traffic congestion in Canadian cities.

Canada’s new government is now providing a tax credit for monthly transit passes. As a result, transit users who spend $80 per month could save up to $75 this year and up to $150 next year. (Earlier this week, I read that in anticipation of increased demand, the Toronto Transit Commission had actually ordered thousands more Metro Passes for July.)

In closing, I believe that we are on the right track. We’ve cut the GST. We’re helping Canadian families with young children. We’re providing tax relief for working Canadians. And we’re encouraging Canadians to use public transit to reduce air pollution and traffic congestion. 

These are all good reasons for Canadians to celebrate this summer.