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The federal goverment 30 11 2007 economic statement Print

On October 30, 2007 the Minister of Finance in the Harper government, Mr. Jim Flaherty, tabled an economic statement. Here is a brief description, as well as the implications for do-it-yourself investors.

The statement doc.867 provides for a reduction of the GST (a measure to encourage taxpayers to spend, not to save), an increase in the personal credit for tax purposes, and a slight decrease in the tax rate for the first tranche or bracket of taxable income. The statement estimates that the reduction in the tax rate will amount to a reduction in personal income taxes of $ 541 in 2007 and subsequent years for taxpayers with taxable incomes of more than $ 40,000.
The impact of all this on the self-investor? Virtually none, since the vast majority of investors invest on the basis of their marginal tax rate (the rate that applies to the highest income levels, a higher rate which is not reduced by the statement). For more, see the section taxation and investing.
As they say in baseball, let’s again wait until next year!

Last Updated ( Thursday, 03 April 2008 )
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