2006 Canadian Federal Budget - Highlights

Highlights

These initiatives are to be delivered in periods that vary from one to five years:

• $1.1 billion for the Canadian Forces.
• $2 billion in general spending cuts.
• The creation of the Canada Employment Credit, a tax credit to be worth approximately $155 per employed Canadian by 2007.
• $1 billion for emergency preparedness, specifically against a potential flu pandemic.
• A decrease (in law) in the lowest income tax rate from 16% to 15.25% for 2006, and to 15.5% for subsequent years.
• Increases to the amount that an individual can earn before paying personal income tax from about $8,300 to $10,000 by 2010.
• A reduction of the general corporate income tax rate from 21% in 2007 to 19% in 2010, and elimination of the 3% corporate income surtax after 2006.
• $160 million for hiring new police officers at the Royal Canadian Mounted Police.
• $3 billion to reduce the government's debt.
• No funding for the Kyoto Protocol
• No funding for the Kelowna Accord
• $150M in new taxes on income trusts