Investors will be looking to see if the rumours of planned cuts to personal income taxes are true when the federal budget is tabled on Tuesday.

The Conservatives plan to cut the GST by one percentage point, at an annual cost of the treasury of about $5 billion.

It’s widely expected that some new income tax cuts will also be contained in the Tories’ maiden budget. Reports say the budget will include a one percentage point cut in the middle income tax rates of 22% and 26%.

The flow of economic news kicks of on Monday, when Statistics Canada releases March industrial product and raw materials price indexes.

On Wednesday, Statistics Canada releases a 1997-2004 study on foreign banks in Canada.

On Thursday, the statistical agency releases March building permits.

On Friday, StatsCan releases the April jobless report.

South of the border

Monday brings the release of U.S. personal income and personal spending for March.

Separately, U.S. construction spending for March is released.

The ISM index, a key measure of U.S. manufacturing activity, is expected to hold steady at about 55. A reading over 50 indicates growth.

Tuesday brings the release of U.S. auto sales for April.

On Wednesday, The ISM’s April services-industry index is due.

On Thursday, U.S. chain stores report retail sales for April.

Friday seed the release of the U.S. jobs report for April. Economists expect the unemployment rate to remain unchanged at 4.7%, with nonfarm payrolls adding around 200,000 jobs.

Earnings

This week also brings a flood of quarterly earnings announcements from companies such as: Morguard; Shoppers Drug Mart; Pengrowth; Alderwoods Group; Industrial Alliance Insurance; Sherritt International; Manitoba Telecom Services; Molson Coorsl; Cambior; Gaz Metro release earnings; Barrick Gold; Torstar; Royal Gold; Golden Star; Gildan Activewear; Open Text; Axcan Pharma; Loblaw Companies; and Cineplex Galaxy.