Report from Parliament's Hill - Mar. 22nd
By Prince George - Peace River M.P. Jay Hill
Thursday, March 22, 2007 03:43 AM
Budget 2007: Aspiring to A Stronger, Safer, Better Canada
Where to begin. Budget 2007 is such good news for Prince George-Peace River and British Columbia I can’t possibly fit everything into this week’s column.
Our Conservative Government’s first budget last year delivered an unprecedented $20-billion tax cut. We still believe Canadians pay too much tax. So this year’s budget continues with aggressive tax-cutting, bringing total tax relief for hard-working Canadians since we took office to $38-billion.
This is what it means for British Columbians:
BC parents will receive $174-million in tax relief under the new $2,000 Child Tax Credit for each child under 18. Single-earner families in BC will get a further $35.2-million in relief through a tax credit increase for low-income spouses and dependants.
The new Working Income Tax Benefit, up to $1,000 per year for families or $500 for individuals, will help low income Canadians over the “welfare wall”, benefiting BC workers to the tune of $86.7-million.
Increasing the RRSP and Registered Pension Plan maturation age from 69 to 71 will mean $25.3-million in tax relief for BC seniors. This follows last year’s doubling of the pension income credit, the increased age credit and the introduction of pension income splitting.
I am thrilled with the reinstatement of the Northern Residents Tax Deduction for Mackenzie. Just over a year into his mandate, Finance Minister Jim Flaherty decisively reversed the decade-old decision to strip Mackenzie’s eligibility for this allowance designed to counter the high cost of living in remote and isolated northern communities.
There’s also tax relief for business to help further stimulate the economy and create more jobs. New capital cost allowance rates for buildings and a temporary two-year write-off for manufacturing equipment will bring $66-million in corporate tax relief. BC farmers, fishers and small business owners can look forward to $10.2-million in tax savings because the Lifetime Capital Gains Tax Exemption is boosted to $750,000.
On the investment side, restoring fiscal balance brings federal support for BC to $4.7-billion in 2007-08, including $3.1-billion under the Canada Health Transfer; $1.3-billion for the Canada Social Transfer, and $242-million for Infrastructure.
The GST rate for local municipalities will jump from 57% to 100% in order to free up resources for infrastructure, programs, and services. Plus the federal budget provides $101.7-million in gas tax funding for BC municipalities in 2007-08.
Overall, BC will receive $4-billion over the next four years in infrastructure funding and other investments. This includes $76.4-million to the province for Patient Wait Times guarantees, $1-billion for the Pacific Gateway, $200-million for the ecoTrust for Clean Air and Climate Change, and BC farmers will receive approximately $60-million through 2007 initiatives.
This is in addition to $1-billion from last year to address the mountain pine beetle infestation, the majority of which will benefit our constituency.
Budget 2007 will also reduce our national debt by a further $9.2-billion. This follows our government’s $13.2-billion payment last September. It invests in enhancing and expanding a skilled work force, provides further support for our troops and makes great strides in preserving our environment.
Whew! A lot of numbers, but they add up to a balanced budget … financially and in terms of Canadians’ priorities. For more information, go to www.fin.gc.ca.
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Posted by: Chadermando on March 22 2007 6:35 PM
"Plus the federal budget provides $101.7-million in gas tax funding for BC municipalities in 2007-08."
At less than 5% of what is collected, what happened to the other 95%. Is this not supposed to be a dedicated tax for roads and road improvements? Does Northern BC not require in a big way road improvements? The other 95% did it go to Quebec or general revenue?
I remember Jay Hill making noise as opposition about government returning the gas tax to those who paid it for the purpose it was paid for. What happened to that argument, or is it no longer the argument now that Jay Hill is in government?