Mr. Speaker, this is really an interesting debate. I do not think it was a year ago when we were pushing for tax cuts that the Prime Minister said publicly in the newspapers that he was not cutting taxes as that was not the Canadian way. Now all of a sudden the Liberals are bragging that apparently they think their tax cuts are bigger than ours. That is not true of course, but they are trying to spin it. What an amazing transformation.
On the member's question, first of all, on the reduction in taxes for those who are in the $30,000 bracket, which is not a rich bracket, our tax plan is going to give them some real relief because we are reducing the exemption. There is a big difference.
A $20,000 income being taxed at 16% is $3,200. At 17% there is the same amount of tax revenue from an income of $18,000. In other words, reducing the exemption by $1,176 gives an individual a 1% reduction. We are reducing the basic exemption by about twice that, by $2,500 approximately. As a result, even though the remaining part will be taxed at the end of our plan at 17% instead of 16%, it still means the taxpayer will be paying less tax because it is only 1% higher but it is on $2,500 less money. Under our plan the person pays no tax at all on that much more money.
It is a problem in communication and the Liberals are really good at that. People look at 16% and 17%. Somehow the Liberals are able to separate Canadians from their money so efficiently and make them feel good about it. In a way we have to admire that skill in communication. We have to admire that, but it is being dishonest to Canadian people.