Goodale Hints At Measures To Cut Income Tax And Boost Competitiveness

by Mike Godfrey, Tax-News.com, Washington

01 November 2004

Canada’s Finance Minister Ralph Goodale indicated on Thursday that tax cuts may be on the way for low income groups, followed by measures to boost the nation’s competitiveness.

Responding to an opposition question at a Commons Finance Committee meeting, Goodale stressed that the government’s priorities were to help the low and middle income workers, commenting that “human and the social needs come first."

"My priorities would be the lower and modest income Canadians in terms of their tax burden as well as selective tax measures that could have an impact on improving the competitiveness of the Canadian economy," he announced.

Hopes for tax cuts had been aroused by the revelation last month that the government’s budget surplus was, at C$9.12 billion, around five times higher than the C$1.9 billion estimated in March, in large part due to a boom in corporate tax receipts.

"This economy is remarkably stronger than any of us dared to expect six to eight months ago," he observed.

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