Tax changes include:

• GST reduction from 6% to 5% effective January 1, 2008.
• GST credit for low and modest-income Canadians will be maintained at its current level.
• Personal income tax reductions retroactive to January 1, 2007: basic personal amount, spousal amount, and equivalent to spouse amount increased to $9,600 for 2007 and 2008, and to $10,100 for 2009.
• Lowest tax rate reduced to 15% from 15.5%.

Proposed federal corporate income tax rates:

2008 – 19.5%
2009 – 19.0%
2010 – 18.0%
2011 – 16.5%
2012 – 15.0%

The entire Economic Statement can be found on the Department of Finance website. No changes have yet been made to the Canadian Tax Calculator or to the tax
tables on this website.  Changes will be made once the tax reductions have een approved in the House of Commons.

The personal tax changes in Budget 2007 include:

• Child amount tax credit for dependent children under 18 - new non-refundable tax credit beginning 2007: based on $2,000 per year per child where the child lives with both parents, may be claimed by either spouse, with unused portion transferable to spouse or common-law partner. In other cases, may be claimed by the parent who is eligible to claim the equivalent to spouse credit for the child (or would be eligible, if that child were the parent's only child).
• Spousal amount non-refundable tax credit increased to same as basic personal amount, starting in 2007.  The credit is reduced for spousal income greater than zero (previously greater than $759 in 2007).  See tables of non-refundable tax credits.
• Working income tax benefit (WITB) refundable tax credit, beginning in 2007: up to $500 for single individuals with earnings greater than $3,000 and net income less than $12,833.  The full $500 will be received by single individuals with earnings of $5,500 or more and net income less than $9,500. Up to $1,000 for couples and single parents with family earnings of $3,000 or more and net income less than $21,167.  The full $1,000 will be received when earnings are $8,000 or more and net family income is less than $14,500. Additional amount of up to $250 for those eligible for the disability tax credit. For more information see the Department of Finance information on WITB.
• Age limit for conversion of RRSPs to RRIF increased from 69 to 71, and RRSP contributions can be made up to and including the year in which the contributor turns 71.

Changes to Registered Education Savings Plans (RESPs) effective for 2007:

• Annual Canada Education Savings Grant (CESG) increased from $400 to $500.
• $4,000 annual limit on contributions has been eliminated.
• Lifetime contribution limit increased from $42,000 to $50,000.
• "Specified educational program" will now include part time programs of at least three consecutive weeks duration, requiring the student to spend not less than 12 hours per month on courses in the program.  Up to $2,500 of educational assistance payments may be made for each 13-week semester of study.
• Maximum CESG receivable for a student remains at $7,200.

Meal expense deductibility for long-haul truckers will be increased from the current 50% to 60% for expenses incurred March 19 to December 31, 2007 inclusive 65% for 2008, 70% for 2009, 75% for 2010, and 80% for years after 2010.

Public transit passes - non-refundable tax credit revised effective January 1, 2007: weekly passes will qualify for the tax credit where the taxpayer purchases them for at least 4 consecutive weeks, and the passes provide the older with unlimited use of the public transit system for a period of 5 to 7 days. Electronic payment cards will qualify for the tax credit, where the cost elates to the use of public transit for at least 32 one-way trips during an uninterrupted period not exceeding 31 days, and that transit usage, and cost of those trips, are recorded and receipted to he purchaser by the relevant transit authority, in sufficient detail as to allow the Canada Revenue Agency to verify eligibility for the credit.

Lfetime capital gains exemption for qualified farm property, fishing property, or small business corporation shares increased from $500,000 to $750,000 for dispositions occurring on or after March 19, 2007.

Instalment payment threshold for personal income taxes will be increased from $2,000 to $3,000 (from $1,200 to $1,800 in Quйbec) beginning in 2008

Donations to private foundations - capital gains tax eliminated effective March 19, 2007

Registered Disability Savings Plan (RDSP) introduced: lifetime maximum contributions of $200,000, with contributions permitted to be made until the end of the year in which the beneficiary turns 59.

Annual contributions will attract Canada Disability Savings Grants (CDSG) epending on family income and amount contributed.  Lifetime CDSG limit is $70,000.

Canada Disability Savings Bonds (CDSBs) of up to $1,000 per year for RDSPs established by low and modest-income families.  Lifetime maximum CDSB limit is $20,000. For more information see the Department of Finance information on the RDSP

Tax changes relating to businesses include:

• Increased capital cost allowance (CCA) rates for purchases on or after March 19, 2007: computer equipment increased from 45% to 55%.
• Buildings used for manufacturing or processing increased from 4% to 10%.
• Other non-residential buildings increased from 4% to 6%.
• Natural gas distribution lines increased from 4% to 6%.
• Liquefied natural gas facilities increased from 4% to 8%.
• Accelerated CCA for manufacturing and processing equipment purchased before 2009 50% straight-line CCA, which results in CCA of 25% in year of purchase, 50% in year 2, and remaining 25% in year 3.
• Accelerated CCA for clean energy generation extended for wave and tidal energy equipment, active solar equipment, small photovoltaic and fixed-location fuel cell systems, biogas production equipment, pulp and paper waste fuels, biomass drying and other fuel upgrading equiment, waste-fuelled thermal energy systems.