Business Income Tax Measures

1. For those of you with corporations, it is proposed that the general, federal corporate tax rate will continue to decrease from its current rate of 21% to 18.5% by January 1, 2011.
2. Capital cost allowance, which is supposed to recognize depreciation on assets, is proposed to increase for buildings used for manufacturing and processing, other non-residential buildings and computer equipment, to name a few.
3. Remittance thresholds for payroll, GST, and corporate instalments are proposed to increase.
4. The Budget 2007 proposes a new credit for businesses that create child-care spaces.

Individual and Family Tax Measures

1. The Budget 2007 contained no measures to reduce personal tax rates or increase personal tax bracket amounts.
2. A new "Working Income Tax Benefit" for low income individuals and families.
3. A "Registered Disability Savings Plan" the will be generally based on the existing Registered Education Savings Plan.
4. Proposed improvements to the Registered Education Savings Plan (RESP) to make it more flexible.
5. A new "Child Tax Credit" for each child under the age of 18 at the end of a taxation year.
6. An increase in the life time capital gains exemption from the current $500,000 to $750.000.
7. An increase in age when individuals have to stop contributing to an RRSP from 69 to 71.
8. Elementary and secondary school scholarships will now be fully exempt from tax.
9. The deductible portion of meals expenses for truckers will be increased from 50% to 80%,
10. An increase in the threshold below which no personal instalments are required.