The Conservative Government’s Canada Day Gift: Welcoming 200,000 Canadians Back to the Tax Rolls

On July 1st, the Conservative Government is lowering the amount every Canadian can earn tax free by $400. As a result, 200,000 Canadians who should not have been paying income tax this year will once again be allowed to contribute. This tax hike was done to pay for the GST reduction, which also starts July 1st.

Liberal Finance Critic John McCallum is sure these low-income Canadians will be ecstatic about the change. “After all, who wouldn’t want to pay income tax once again to help someone save $1,200 in GST on a new Mercedes?” said McCallum. Canadians earning $10,000 per year will save about $26 in GST in 2006.

McCallum also pointed out that the Conservative Government will just keep on giving to low-income Canadians this Canada Day by also raising the lowest income tax rate to 15.5 percent from 15 percent, starting July 1st.

“This Government has clearly figured out that low-income Canadians are eager to celebrate the Conservative ideal of robbing the poor to pay the rich. And Canada Day is the perfect day to celebrate.”

As a result of the Canada Day income tax hikes, most Canadian taxpayers will pay about $100 more in 2006 and about $200 more in 2007.

McCallum also questioned the location that the Prime Minister and his Finance Minister chose to hold a GST reduction press conference today, a Giant Tiger store in Ottawa.

"They should have held the press conference at a Mercedes dealership where luxury car buyers stand to save hundreds of dollars from this reverse Robin Hood tax policy," said McCallum.

"Instead they choose a store famous for its 44 cent chocolate bars on which Canadians won't even save half a penny after July 1st."

McCallum did however point out that Conservative MP Scott Reid sits on the Board of Directors of Giant Tiger and is heir to the chain.