Thursday, March 29, 2007

Will Steve really cut your taxes?

Not unless you're pretty well off already, it seems:

The new message Canadians are sending their politicians is very clearly about better access to services, not tax cuts.

The Harper government wants you to believe that average families are squarely at the centre of their budget spending this year.

Before you celebrate this "something for everyone" approach to politics, consider this: A striking number of Canadians actually won't benefit from much of what is promised in this budget.

Most Canadian tax filers — 59 percent — report incomes of less than $30,000. Most of them will not be eligible for this budget's billions in promised tax credits.

Why? Revenue Canada statistics show people with incomes of less than $30,000 make up 99 percent of those who pay no taxes — 7.3 million tax filers. Tax credits don't reach people who don't pay taxes.

The only income "relief" for this group of voters goes to people who earn more than $3,000 but less than $9,500 in a year (or a family that earns less than $14,500).

The good news is that these people get a $500 benefit. The bad news is, that's the only help on the horizon — a measure designed to help encourage those on welfare to join the ranks of the "working poor" offers $1.37 a day.

No Canadian truly believes $1.37 a day can address the real needs of those struggling to pay the rent and feed the kids, let alone put them through school or save for retirement.

From here. Not that most people who read this here will be surprised, but it's a worthwhile talking point.

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