Canada's Federal Budget 2006

I sent my tax return last Friday. For the first time, I paid someone to do it and there would be a modest tax refund. Won't bore you the details of Federal Budget 2006. You can read it online: Budget 2006 - Focusing on Priorities http://www.fin.gc.ca/budtoce/2006/budliste.htm or read or watch the news coverage. Bottom line: The federal government's lowest personal income tax rate will rise. In 2005 it was set at 15 per cent and applied to the first $35,595 of income. The Conservative's first budget will see this rate increase to 15.25 per cent this year and to 15.5 per cent in 2007. Second bottom line: GST will be 6 per cent on Saturday, 1 July. Third bottom line: Employment expense credit will be introduced on 1 July. For 2006 it would cut taxable income by $250, and the credit would rise to $1,000 for the 2007 tax year and beyond, and be indexed to inflation. In 2006, the credit would reduce every working individual's taxes by $38, and this will rise to $155 in 2007. Because the credit is indexed to inflation, that amount will increase slightly in future years. When combined with the current basic personal tax credit — now at around $9,000 --- the new credit will increase to about $10,000 the amount of money an individual can earn without paying any federal income tax.