Federal finance minister Jim Flaherty’s recent Economic Statement addresses past over-taxation, current cash surpluses and future global financial uncertainty.

Just as we have known for several years now, the federal government has been collecting more taxes than necessary to run the country. Mr. Flaherty’s Economic Statement of October 30 addresses the surplus by cutting taxes to their lowest level in nearly 50 years. At long last, Canadians will be left with more money in their pockets to spend as they see fit, rather than letting big government do it for them.

Are the savings real? A family that spends $30,000 on a new mini-van will save $600 in GST, which could buy a set of snow tires. A family investing $10,000 on home renovations will save $200, and that could literally buy the kitchen sink. The GST goes down to five percent on January 1 and that will help all of us every time we venture out to the store.

Since this government came into power 21 months ago, we have put the wheels in motion to reduce the burden of personal and corporate taxes by a whopping $190 billion.

We knew Canadians were paying too much in taxes under the Liberal government, and it’s become obvious that our public coffers are overflowing with too much cash. Well, that’s your money and this government wants you to keep it.

Retroactive to January 1, 2007, we plan to increase the basic personal tax exemption to $9,600, and then the following year we will raise it to $10,100. This will especially help thousands of low-income families.

Traditionally, finance ministers have managed to ignore the middle class, but those days are over. Middle class earners – that is the majority of Canadians -- will enjoy the bulk of personal income tax savings. About 75 percent of the dollar value in the personal income tax cuts will apply to families that earn from $40,000 to $80,000 annually.

Business taxes are being cut incrementally for five years to encourage increased production and expansion. Small- and medium-sized businesses are the pulse of the Canadian economy. Tax cuts in this area will boost the economy and help create thousands of jobs.

Corporations will also receive tax relief to ensure they continue to employ Canadians and win their share of international investment. Canada’s corporate income tax rate will fall by a third from 2007 to 2012, which will make Canada’s rate the lowest among major industrialized economies. That’s real leadership by our Conservative government.

The road to future prosperity may have a few curves in it, but the federal government is doing its level best to build a strong economy for all Canadians.

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