Mr. Speaker, it is a particular pleasure to rise in the House today to speak to the budget. It has been a long time since we have had the opportunity in the House to speak to a budget that addresses the concerns of all Canadians, a budget that does what this party made a commitment to do during our election campaign.
It is a budget that reduces income taxes, reduces the GST, reduces small business taxes and reduces corporate taxes. Ninety per cent of the reductions go to individuals and families in Canada, almost $20 billion over the next two years. That is more tax relief than the last four federal budgets combined.
For every dollar in new spending, Canada's new government delivers $2 in tax relief. Taxes will be reduced in every area where the federal government collects revenue such as the GST, income taxes and business taxes, including targeted measures to help Canadians with the cost of transit passes, tools, textbooks and kids' sports. I will speak more on that in a moment.
For the people where I live, as a result of these tax measures, Albertans will pay $1 billion less in taxes in 2007. Families earning between $15,000 and $30,000 per year will be better off by almost $300 in 2007. Those earning between $45,000 and $60,000 will save almost $650, and 655,000 low income Canadians will be removed from the federal tax rolls altogether.
With the Canada employment credit and the increase in the basic personal exemption, people will be able to earn almost $10,000 in 2007 without having to pay any federal income tax at all.
As promised, the budget reduces the GST from 7% to 6%, effective July 1. This is a tax cut for which Canadians voted. This is a tax cut Canadians want. This is a tax cut that Canada's new government will deliver. A reduction to the GST will benefit all Canadians, including low income Canadians. It also will make Canadian products more attractive to consumers and it will strengthen the economy.
Effective July 1, the budget creates the brand new $1,000 Canada employment credit. This new tax gives Canadians a break on what it costs to work, recognizing expenses for such things as home computers, uniforms and supplies.
On personal income taxes, effective July 1, the lowest personal income tax rate will be permanently reduced from 16% to 15.5%. The amount that all Canadians can earn without paying federal tax will be increased each and every year for 2005, 2006 and 2007.
Those who operate small businesses in Calgary have told me how welcome the new tax cuts are, allowing them to hire more people at higher wages, to better compete and to retain employees in our booming economy. Effective January 1, 2007, the threshold for small business income eligible for reduced federal tax rate will be increased from $300,000 to $400,000.
The excise tax on jewellery will be replaced effective immediately, allowing Canadian businesses to compete on a level playing field.
Our larger employers will also benefit. Effective January 1, 2008, the general corporate tax rate will be reduced to 20.5% as part of our commitment to reduce this tax to 19% by 2010. Effective January 1, 2008, the corporate tax will be eliminated also. The federal capital tax is also eliminated on January 1 of this year, two years earlier than was originally scheduled.
As has been noted, the budget includes significant assistance for families and communities. For apprentices, the budget creates a new apprentice job creation tax credit of $2,000. For students, we are creating a textbook tax credit that will benefit approximately 1.9 million Canadian students at a cost of $260 million over the next two years.
There is just so much in the budget of which all Canadians should be aware. I hope they will perhaps go to the government website to look at these initiatives and the wonderful benefits for them. It is a budget that we promised during the election campaign. We made commitments and we are delivering.
For young families the budget provides a physical fitness tax credit of $500 to cover registration fees for children's sports and seniors have not been forgotten either. To provide increased support to Canadian seniors, the budget doubles the amount of eligible pension income that can be claimed as a pension income credit from $1,000 to $2,000 starting in the 2006 tax year, the first increase in more than 30 years.
I have so much more, but I see the time is fleeting. Our government's approach to spending is based on three principles: first, government programs should focus on results and value for money; second, government programs must be consistent with federal responsibilities; and third, government programs that no longer serve the purpose for which they were created should be eliminated.
In conclusion, I would like to note that the budget has the support of Canadians, particularly in my own province of Alberta. A poll done this last weekend showed that 67% of us support the budget. When we look at these details and more, across the board tax credits, focused spending on the priorities of Canadians and a commitment to debt reduction, it is no wonder why.