As of January 1, 2008, Canadians are benefiting from one new tax cut thanks to the Conservative Government’s second GST cut in as many years.

In the weeks ahead, Canadian families can look forward to even more tax relief as the Conservative Government’s retroactive income tax reductions also take effect.

Prime Minister Stephen Harper has cut income taxes retroactively; as a result, Canadian families will have a smaller tax bill for the 2007 year. Effective January 1st, 2007, the lowest personal income tax rate will be reduced to 15 per cent from 15.5 per cent. In addition, the amount that all Canadians can earn without paying federal income tax will be increased to $9,600 for 2007 and 2008 and to $10,100 for 2009.

Together, these two measures will reduce personal income taxes for 2007 by almost $225 for a single worker earning $40,000. A two income family of four who earns $80,000 will save more than $400 on their 2007 tax bill.

Thanks to the leadership of the Conservative Government, Canadian families will have more money refunded for last year, more money this year and more money for years to come.

While Stéphane Dion spends his time musing about the kinds of higher taxes he wants to impose, Prime Minister Stephen Harper continues to show real leadership by lowering taxes and allowing hard-working Canadian families to keep more of what they earn.