OTTAWA, ON – On Tuesday, May 02, 2006, Finance Minister, Jim Flaherty, delivered the new Conservative Government’s 2006 Budget.
In its first budget, Canada’s new Conservative Government will deliver $20 billion in tax relief over two years – that is more tax relief than the last four federal budgets combined. For every dollar in new spending, Canada’s new Government delivers two dollars in tax relief.
The Budget also fulfilled the Conservative Government’s election promises and focus on five priorities. In total, 29 federal taxes will be reduced in every area the federal government collects revenue: G.S.T., income taxes and business taxes, including targeted measures to help Canadians with the cost of transit passes, tools, text books, and kids’ sports.
The Conservative Government will reduce the G.S.T. from seven per cent to six per cent effective July 01, 2006. This is a tax cut that Canadians asked for and the new Government is delivering. This reduction will make Canadian products more attractive to consumers and result in a strengthened economy. In addition, this measure will ease the tax burden on hardworking Canadian families and businesses.
Special attention to Canadian families was a common theme throughout the new Budget. The Universal Childcare Benefit, which will provide all families with $100 per month for each child under the age of six (effective July 01, 2021) was officially introduced by Minister Flaherty. The Government has also set aside $250 million per year, for a new program to support the creation of childcare spaces beginning in 2007-2008, which was another campaign promise of the Conservatives. Furthermore, the new Government will be introducing a tax credit to promote physical fitness among children, effective January 01, 2007. The credit will be provided on up to $500 in fees for programs of physical fitness for each eligible child under age sixteen.
Farmers and agriculture were also recognized in the new Budget. The Conservative Government has committed to an additional $2 billion in funding over two years, $1.5 billion of which will be allocated in Budget 2006. The Budget has also allocated an additional $500 million per year for farm support and a one-time investment of $1 billion to assist farmers in the transition to more effective programming for farm income stabilization and disaster relief.
Transportation and Canadian roads were not forgotten in the 2006 budget. The Conservative Government has pledged to increase investment in Canadian highways and borders, as well as to maintain the $3.9 billion in current funding. Moreover, the Government has committed $16.5 billion in new infrastructure initiatives and projects across Canada.
Mr. Tilson was available for comment on Budget 2006, “I believe this budget to be the most fiscally responsible and comprehensive budget ever given. We have delivered on our election priorities and issues that matter most. Canadians have received the tax relief they have demanded and deserve. Once passed, this Budget will make a stronger Canada and we will most definitely reap the benefits here in Dufferin-Caledon.”
For more information on Budget 2006, please feel free to contact any of Mr. Tilson’s offices listed below.
711 Justice Building
House of Commons
Ottawa ON K1A 4H5
229 Broadway, Unit 2
Orangeville ON L9W 1K4
12596 Hwy #50
Bolton ON L7E 1T6