Canadian families better off with Harper

September 08, 2008

Risky Policies Would Take Gains Away

Prime Minister Stephen Harper today said that the Conservative Government’s tax relief and benefits have improved the lives of Canadian families and increased Canada’s standard of living.

“We have worked hard to put thousands of dollars back into the hands of the average Canadian family, because that’s the right direction for our standard of living and for our country,” Harper said.

Since 2006, the Harper Government has taken a number of steps to provide relief to Canadians families including:

* Reducing the GST from 7 to 5 per cent.
* Introducing a $100-a-month child benefit.
* Providing targeted tax cuts for apprentice tools, transit passes and children’s fitness.
* Establishing the Tax Free Savings Account.

The Prime Minister said that a typical family is saving more than $3,000 each year as a result of the Harper Government’s policies. Today, Harper met with Edwin and Fei Huang in the kitchen of their home to discuss how the Conservative Government’s tax relief and benefits have made a positive difference in their lives.

Prime Minister Harper said that voters face a clear choice in the coming election – to maintain the gains Canadian families have made since 2006 or to go backwards and jeopardize these accomplishments.

“Canadians do not want a new tax,” said Harper. “Do we stay the course with a plan that’s working or do we experiment with a risky new carbon tax? Do we hold the GST at 5 per cent, or increase it to pay for expensive promises that Canada can’t afford? Do we protect the $100-a-month child benefit, or take it away? And do we stick with the team that has actually delivered for working families?"



BACKGROUNDER

Since 2006, the Harper Conservatives have introduced tax relief and benefits that have improved the lives of average Canadian families across the country.

Typical Savings

A typical Canadian family earning $87,000 is saving $3,894 each year as a result of the Harper Government’s tax relief and benefits.

In this example, assume that one parent earns $52,000 and the second parent earns $35,000. They have two children – a seven-year-old son and a three-year-old daughter. One of the parents takes public transit to work. Thanks to the Harper Conservatives, the family would save:

GST Cut $800
Universal Child Care Benefit $1,020
Canada Employment Credit $306
Child Credit $611
Transit Credit $416
Child Fitness Credit $150
Basic Personal Amount Increase $96
Total Savings $3,894

Cutting the GST

The Harper Conservatives have kept their promise to reduce the GST from 7 to 5 per cent.

The two-point reduction saves the average working family hundreds of dollars per year on day-to-day purchases, not to mention hundreds more on a new car or thousands on a new home. This tax cut benefits all Canadians regardless of age or income – including those whose incomes are too low to pay income tax. The total savings from the two per cent reduction are almost $12 billion a year.

Reducing the GST is part of the Conservative Government’s broader plan to ensure Canada’s long-term economic growth and prosperity. Since coming to office, the Conservative Government has taken action to cut sales, income and business taxes, reducing the overall tax burden for Canadians and businesses by close to $200 billion and bringing taxes to their lowest level in nearly 50 years.

$100 per month Child Care Benefit

Part of Canada’s Universal Child Care Plan, the Universal Child Care Benefit helps Canadians balance work and family by supporting their child care choices. This benefit of $100 a month — up to $1,200 a year per child — is paid to parents for all children under six years of age.

The Universal Child Care Benefit was introduced by the Harper Government in July 2006. Payments are made directly so that parents can choose the child care that is best for their children and their family’s needs.

Targeted tax relief

The Harper Government has introduced a number of targeted tax cuts to assist Canadian families, including:

* The Public Transit Tax Credit, introduced on July 1, 2006, to help cover the cost of public transit.
* The Children’s Fitness Tax Credit to cover up to $500 for enrolment in a physical activity program, effective January 1, 2007.
* A new textbook tax credit, effective January 1, 2006, to help students pay for their costs of their education.
* A $500 deduction for workers to offset the cost of tools, introduced January 1, 2006.

Tax Free Savings Account

The Harper Government has introduced the Tax Free Savings Account (TFSA) – a flexible, registered general-purpose account that will allow Canadians to earn tax-free investment income.

Starting in 2009, Canadians will be able to set aside up to $5,000 a year in a TFSA. Capital gains and investment income in the TFSA will not be taxed and withdrawals will be tax free.

Canadian families will be able to use the money saved in their TFSAs to start a small business, purchase a new home or a new car, or take a vacation. In these ways, savings contribute to a higher standard of living for Canadians.

Canada. We’re better off with Harper.