(January 31 – 12:35 ET) – The Alliance of Manufacturers & Exporters Canada is urging Finance Minister Paul Martin to reduce personal and corporate taxes by $22.5 billion over the next five years.
The Alliance proposed a bold 5-year tax reduction plan that clearly signals a vision for a prosperous and internationally competitive Canada. To achieve this objective, the Alliance proposes that tax reduction measures should include:
> Indexing the basic level of tax exemption for Canadians to inflation;
> Reducing the federal income tax rate for the middle income tax bracket from 26% to 22.5%;
> Eliminating the federal surtax on income over $65,000;
> Reducing the taxable portion of capital gains from 75% to 65%; and,
> Changing the tax rules to allow for the taxation of stock options at the time they are sold rather than at the time they are exercised.
> Increase the lowest income tax bracket threshold from $29,590 to $60,000;
> Increase the middle income tax bracket threshold from $59,180 to $100,000;
> Reduce the federal income tax rate on the highest income tax bracket from 29% to 28%;
“The Alliance calculations do not take into account the additional revenues the government can earn as a result of the economic stimulus provided by our tax plan,” says Perrin Beatty, spokesman for the Alliance.
The Alliance of Manufacturers & Exporters Canada is Canada’s leading business network. Its membership represents 75% of all manufactured output and 90% of the country’s merchandise exports.
-IE Staff