Re: Tom Skoreyko’s letter of Feb. 22
In response to Mr. Tom Skoreyko, I’d like to outline some of the tax cuts that our government has made since 2006.
In every budget since 2006 (available online through the Ministry of Finance website) our government has outlined significant reductions in taxes. While it would be cumbersome to list the 140-plus cuts we have made since 2006, here is just a small example of cuts that this government has made.
Some changes we made in 2006:
• Reduced the GST rate to six per cent from seven per cent, effective July 1, 2006.
• Reduced lowest personal income tax (PIT) rate to 15.5 per cent from 16 per cent, effective July 1, 2006.
• Increased the basic personal amount to $8,648 from $8,148 for 2005, to $8,839 from $8,428 for 2006, to $8,929 from $8,713 in 2007, to $9,299 from $9,278 in 2008, and to $10,131 from $10,110 in 2009.
• Introduced the Canada Employment Credit, effective July 1, 2006 (up to $1,000 in 2007, first full year).
• Introduced deduction of cost of tools for tradespeople (up to $500 for costs in excess of $1,000).
• Introduced a Textbook Tax Credit (amount up to $65 per month).
• Exempted post-secondary scholarship and bursary income from tax.
• Introduced Children’s Fitness Tax Credit (recognizes up to $500 in eligible fees per child).
• Doubled amount of income eligible for the Pension Income Credit to $2,000 from $1,000.
• Reduced tax on large corporation dividends (increase gross-up to 45 per cent from 25 per cent and dividend tax credit to 19 per cent from 13.3 per cent).
• Increased the maximum Refundable Medical Expenses Supplement to $1,000 from $767.
• Introduced the Public Transit Tax Credit, effective July 1, 2006.
• Introduced Pension Income Splitting effective 2007.
Budget 2007 included these cuts:
• Introduced the Working Income Tax Benefit.
• Eliminated the capital gains tax on donations of publicly-listed securities to private foundation.
• Exempted elementary and secondary school scholarship income from tax.
• Increased the lifetime contribution limit to $50,000 for Registered Education Savings Plans (RESPs).
• Eliminated the RESP annual contribution limit.
• Expanded access to RESP savings for part-time studies.
• Introduced the Child Tax Credit (initial amount of $2,000).
• Increased the spousal and eligible dependant amounts to $8,929 from $7,581.
• Extended the Public Transit Tax Credit to electronic and weekly passes used on a regular basis.
• Increased the lifetime capital gains exemption to $750,000 from $500,000.
• Gradually increased the deduction for meal expenses of truck drivers from 50 per cent of the allowable amount in 2006 to 80 per cent in 2011.
• Provided more flexibility to employers to offer phased retirement programs.
• Introduced the Registered Disability Savings Plan (RDSP), effective 2008.
In Budget 2008, we outlined additional tax cuts, some of which included:
• Introduced the Tax-Free Savings Account, effective 2009.
• Expanded the list of expenses eligible under the Medical Expense Tax Credit.
• Extended the Registered Education Savings Plan (RESP) termination date limits and allowed a six-month grace period for receiving Educational Assistance Payments under an RESP.
• Increased the residency component of the Northern Residents Deduction by 10 per cent.
• Extended the capital gains tax exemption to certain donations of exchangeable shares.
• Exempted from GST/HST specially designed training to assist individuals in coping with effects of a disability or disorder; expanded the list of GST/HST-free medical and assistive devices (e.g., service dogs).
Some of the breaks that Budget 2009 offered:
• Increased upper limit of the first Personal Income Tax bracket to $40,726 from $38,832 for 2009.
• Increased upper limit of the second Personal Income Tax bracket to $81,452 from $77,665 for 2009.
• Doubled the total tax relief provided by the Working Income Tax Benefit.
• Increased the Age Credit amount by $1,000, effective 2009.
• Introduced the temporary Home Renovation Tax Credit on expenditures in excess of $1,000, but not more than $10,000.
• Introduced the First-Time Home Buyers’ Tax Credit, based on an amount of $5,000.
• Increased the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000.
• Introduced tax relief for RRSP post-death losses.
Budget 2010 included these cuts, among others:
• Improved the allocation of child benefits between parents who share custody of a child.
• Introduced special relief for tax deferral elections on stock options.
• Reinstated the 50 per cent inclusion rate for Canadian residents who have been in receipt of U.S. Social Security benefits since before January 1, 1996.
• Reduced the administrative burden on charities by eliminating several disbursement quota requirements.
Budget 2011 included these cuts:
• Introduced the Children’s Arts Tax Credit for up to $500 per child in eligible fees and an additional $500 non-refundable amount for DTC-eligible children.
• Introduced a Volunteer Firefighters Tax Credit, based on an amount of $3,000 for volunteer firefighters who perform at least 200 service hours.
• Introduced a Family Caregiver Tax Credit, based on an amount of $2,000 for caregivers of infirm dependants.
• Removed the $10,000 limit that applies on the amount that caregivers can claim under the Medical Expense Tax Credit on behalf of certain dependants.
• Eliminated the one-per-household rule for the Child Tax Credit.
• Included professional or trade examination fees in the definition of eligible tuition for the Tuition Tax Credit.
• Reduced the minimum duration requirement that Canadian students studying at foreign universities must meet to claim the Tuition, Education and Textbook Tax Credits or receive Educational Assistance Payments from RESPs.
• Provided subscribers of separate individual RESPs with the same flexibility to allocate assets among siblings as exists for subscribers of family plans.
Lastly, in our most recent budget, our government introduced these cuts, along with many others:
• Allowed parents, spouses and common-law partners to open Registered Disability Savings Plans for an adult individual who might not be able to enter into a contract.
• Allowed investment income earned in a Registered Education Savings Plan to be rolled over on a tax-free basis to a Registered Disability Savings Plan.
• Provided more flexibility for Registered Disability Savings Plans to remain open for beneficiaries who cease to qualify for the Disability Tax Credit in certain circumstances.
• Increased the maximum withdrawal limits that apply to certain Registered Disability Savings Plans.
As well, our government has moved up the date for Personal Tax Freedom day by over two weeks since taking office in 2006.
The goal of this government is to ensure that all the cuts we make to Canadian taxes are done with the interest of Canadians in mind. We routinely hold consultations with the public to gain their input on upcoming budgets.
Whether the cuts are for businesses to encourage them to hire new employees or cuts to personal taxes to keep money in the pockets of Canadians, Canadians always have the chances to make their voices heard before we make these important decisions. I encourage Mr. Skoreyko to visit the Finance website (www.fin.gc.ca) or my website (www.blainecalkinsmp.com) and browse our past budgets to find more in-depth information regarding the 140-plus cuts that this government has made to Canadian tax since taking office in 2006.
Blaine Calkins, MP
Wetaskiwin