Creating Economic Advantage for all Canadians

January 01, 2007

Canadians work hard, pay their taxes, abide by the laws of the land and set aside a few dollars for retirement. Quite often family members will sit down at the kitchen table and develop a long-term plan to pay off their mortgage, to save for their children’s education or to map out a vacation.

Canadians know the importance of balancing the books, living within their means and planning ahead.

Our Government is taking a similar approach to managing the economy and the finances of Canada. We have developed a bold new long-term economic plan called Advantage Canada. The Plan is about making a strong Canada even stronger by lowering the debt, reducing the tax burden even further, developing a skilled and educated workforce and building modern infrastructure like roads, bridges and public transit through public-private partnerships.

As part of the Advantage Canada plan we will use the interest saved from debt repayment to reduce personal income taxes. This ‘‘Tax Back Guarantee’’ will give Canadians a direct stake and a direct benefit in how we manage government finances on their behalf. Earlier this year, our government made a debt payment of $13.2 billion dollars and put the $660 million in interest savings back into the pockets of hardworking Canadians.

We believe Canadians pay too much tax and that by returning this money to families, students, workers, and seniors we will strengthen our economy and create a Canadian tax advantage.

Our Advantage Canada plan builds on Canada’s strengths and seeks to gain a global competitive advantage in five key areas:

• Tax Advantage – Reducing taxes for all Canadians and establishing the lowest tax rate on new business investment among the top economies of the world
• Fiscal Advantage – Eliminating Canada’s total government net debt in less than a generation
• Entrepreneurial Advantage – Reducing unnecessary regulation and red tape by increasing competition in the Canadian marketplace
• Knowledge Advantage – Creating the best-educated, most skilled and most flexible workforce in the world
• Infrastructure Advantage – Building modern infrastructure such as roads, bridges, border crossings, public transit and information networks through public-private partnerships

Advantage Canada is a forward-looking long-term economic plan that is long overdue. It is a roadmap that will shape Canada’s future and not only help Canadian families and businesses reach their full potential, but also create the right conditions and opportunities for success.

If you would like more information on Advantage Canada, please visit http://www.fin.gc.ca/ec2006/plan/pltoce.html. And if you have any questions or comments for me, please do not hesitate to contact my office at www.jamesrajotte.com.