May 02, 2006

Ottawa - Gord Brown, Member of Parliament for Leeds-Grenville says hard working Canadians in Ontario will have more money in their pockets as a result of the first budget of Canada's new government. It provides real tax relief for every person in the province regardless of age or income level.

"Ottawa has been overtaxing people in Ontario for years and our government is delivering real tax relief that makes a difference," says Brown. "In fact, our government's first budget offers nearly $20 billion in tax relief for Canadians over the next two years - more than the last four federal budgets combined."

Overall, the government's first budget delivers more than twice as much tax relief as new spending. These measures include:

• a one-percentage-point cut in the GST as of July 1, 2006;
• a new Canada Employment Credit of $1,000;
• a permanent legislated reduction in the lowest tax rate to 15.5 per cent as of July 1; and
• increases in the basic personal amount - the amount that all Canadians can earn without paying federal income tax.
  

As a result of these measures, Ontarians will pay $3.5 billion less in taxes in 2007. Also, families earning between $15,000 and $30,000 per year will be better off by almost $300 in 2007, and those earning between $45,000 and $60,000 will save almost $650.

This budget also delivers on the government's other key priorities:

• The Universal Child Care Benefit, which provides all families with $1,200 a year for each child younger than six, will put an estimated $974.2 million in the hands of Ontario parents over the next year.
• As part of the implementation of the 10-Year Plan to Strengthen Health Care, Ontario will receive $176 million more in support of health care - and the reduction of wait times - bringing total federal cash transfer support for health in Ontario to $8.0 billion in 2006-07
• To ensure safe streets and safe communities this budget is providing $161 million for 1,000 more RCMP officers and federal prosecutors.
• To support Canadian farming communities, the government is providing $1.5 billion this year. This includes $500 million for farm support that was promised during the federal election, plus a one-time investment of $1 billion to assist farmers in the transition to more effective programming for farm income stabilization and disaster relief.
  

The government's first budget also provides significant support for seniors, students, transit riders and new Canadians.

• The government is helping seniors by doubling the amount of eligible pension income that can be claimed under the pension income credit. It will provide savings of up to $155 for eligible pensioners and remove approximately 85,000 pensioners from the tax rolls altogether.
• The government is creating a new Textbook Tax Credit, which will benefit approximately 1.9 million Canadian students, at a cost of $260 million over two years.
• The Post-Secondary Education Infrastructure Trust will support investments for infrastructure and equipment, such as modernization of classrooms and laboratories, of up $1 billion, of which up to $390 million will benefit post-secondary institutions in Ontario.
• To support families and promote healthy active living, the government is providing a physical fitness tax credit for up to $500, to cover registration fees for children's sports.
• A new $500 Tool Tax Deduction for trades people for the cost of tools in excess of $1,000 that they must acquire as a condition of their employment.
• To improve transit system infrastructure, Ontario is getting $155.2 million right away. Further, any surplus funds in excess of $2 billion in fiscal year 2005-06 will be used to provide the province with up to $351.5 million through the Public Transit Capital Trust.
• People who use Ontario's transit systems will benefit from a new 15.5-per-cent tax credit on the purchase of monthly transit passes.
• Municipalities across Canada will receive an estimated $4.4 billion over the next four years as a share of federal gas tax revenues - money they can invest in roads, clean water and other priorities. In 2006, Ontario will receive $223.9 million for these purposes.
• The Greater Toronto Area is a destination for many immigrants to Canada. Effective immediately, the Government will cut the Right of Permanent Residence Fee to $490 from $975 and grant partial refunds to people who have already paid the higher fee but have not yet received permanent resident status or have not yet arrived.
• The Affordable Housing Trust will support investments to increase the supply of affordable housing, including transitional and supportive housing, of up to $312.3 million in Ontario.
  

"Our government is following through on the commitments we made during the election campaign," says Brown.

"The results of our acting on these priorities will be a stronger Ontario and a better life for all Canadians."

Complete budget information is available on the internet at www.fin.gc.ca. Click on Budget 2006.