The report provides estimates and projections of the revenue impacts of all special federal tax measures designed to support the economic and social priorities of the Government.

The revenue estimates and projections in the report reflect all tax changes announced to date, including the following changes from Budget 2007 and the 2007 Economic Statement:

• Reducing the goods and services tax rate to 5% from 6%.
• Reducing the general corporate income tax rate to 15% by 2012, giving Canada the lowest statutory tax rate in the Group of Seven (G7).
• Increasing the amount all Canadians can earn without paying federal income tax to USD9,600 in 2007 and 2008, and to USD10,100 in 2009.
• Reducing the lowest personal income tax rate to 15% from 15.5% as of January 1, 2007.
• Introducing a new non-refundable child tax credit based on an amount of $2,000 for each child under the age of 18 years.
• Implementing a USD550-million Working Income Tax Benefit. This refundable tax credit aims to strengthen incentives to work for low-income individuals and families, and help them over the welfare wall.
• Increasing the lifetime capital gains exemption to USD750,000 from USD500,000 for small business owners, farmers, fishermen and fisherwomen.

This year's edition includes a report assessing the impact of the reduction in the statutory tax rate on corporate income from 28% to 21% which was announced in Budget 2000 and implemented over the 2001–2004 period.

The study provides clear evidence that investment was strongly and positively influenced by the 2001–2004 tax reductions, according to the government.

The business tax reductions announced in Budget 2006, the Tax Fairness Plan, Budget 2007 and the 2007 Economic Statement are expected to have similarly beneficial effects on investment.