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Latest Article Posted 6:00 PM EST 30/11/06

PRIORITY ONE: 28 TAX CUTS

Flaherty presents budget

Conservatives promise widespread relief for middle class through 28 measures


Analysis: Stamping small-c philosophy all over Ottawa

First Conservative budget in 13 years demonstrates that these Tories have not abandoned their traditional view of the world


Provinces: Tories plot new course

The Harper government is steering the country in a radically different direction in the perpetual fiscal tug-of-war between Ottawa and the provinces.

Reaction

Political analysis: Survival comes cheaply for Harper minority

Facing crumbling support, Bloc pledge to vote for budget, wait until next year

Reaction: Budget riles many groups

Economists, however, applaud ‘realistic' approach

Business reaction: Strong economic position cemented

Conservative budget to provide fresh impetus to economy, stock market, but not enough to change current dollar trend, analysts say

Budget puts provinces at odds

Quebec heaps praise on Harper's fiscal plan as Ontario rejects equalization proposal


The 5 priorities

Child care: Plan favours stay-at-home parents

Won't close the gap between available and needed child-care spaces, critics say

GST: Harper's Canada Day gift

Government confirms its plan to trim federal sales tax to 6 per cent at cost of $4.3-billion a year

Wait times: Little new money seen

Government doesn't add anything to the pot that was committed 18 months ago by the previous Liberal regime.

Crime: Mounties, border guards among winners

Mounties and border guards emerged the only significant winners in a low-key federal security package that contained few surprises and left several large questions unanswered.

Accountability Act: Cost set at $164-million


Taxes

Your taxes: It depends how you slice the numbers

Several measures will ease the overall burden, notably a cut to the GST, but personal income taxes will also rise.

Sin taxes: Will rise to offset GST cut

If you think that new cut in the GST is going to save you money on smokes and booze, think again

Low-income changes: Moves get mixed reviews


Other policies

Analysis: Big tax cuts don't leave much room for error

1-per-cent rise in interest rates could push Ottawa into deficit, budget estimates show

Spending: Little headway toward reining it in

Only baby steps taken despite election pledges to trim expenditures by $22.5-billion over five years.

Defence: Big purchases not addressed

Despite promises, government gives hard-pressed military just $1.1-billion in new spending over two years.

Transit: Riders get tax break on passes

Budget offers millions for provinces to spend upgrading and expanding public transit and building affordable housing.

Pensions: Should surpluses top up public plans?

Ottawa wants provinces to consider using excess funds to reduce worker contributions

Aboriginals: Spending falls millions short of Kelowna promises

Tories commit $450-million over two years but deal calls for $800-million this year

Employment: Expense credit revived

It's designed to help offset commuting expenses, work clothes and other costs most people ring up just to go to work.

Arts: Tory budget has culture, but not much

Canada's arts and cultural community is putting a positive face on slight boost in funding


Business

Corporate Canada: Business scores on wide range of tax cuts

But interest rates may rise, economists say.

Charities: Rubbing their hands in glee

Tax change seen opening floodgates

 

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