Speech

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Prime Minister rings in new year with GST cut

December 31, 2007
Mississauga, ON

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Good morning, ladies and gentlemen.

Thanks to Mario Annecchini for hosting us at his store today.

Thank you, Mario and all of your staff.

We promise not to be here too long and disrupt what is I gather one of the biggest sales days of the year.

Greetings to my colleague, Dean Del Mastro, who has come here from Peterborough to be with us today.

And, of course, thank you, Jim, for the introduction and for the solid work that you are doing as our Minister of Finance.

Thanks to Jim and of course millions of other hardworking Canadians,

Our economy's strong and growing,

Unemployment is at a 33-year low,

Important program investments are being made, and the national debt is being paid down.

Canadians have earned their share of this reward.

And that's why we're here today.

Our government believes in lower taxes.

Lower taxes reward hard work,

Spur economic growth,

And give people real choices in their lives.

In 2005, I came to this very store and promised Canadians that a new Conservative government would cut the GST from seven to six to five per cent.

And at midnight tonight we will deliver on that promise – three years ahead of schedule.

The GST will fall to five per cent, which will deliver an additional six billion dollars in tax relief to Canadians during 2008.

That's on top of our first GST cut. The combined total savings will be 12 billion dollars next year and 60 billion dollars over the next five years.

This cut will save the average working family hundreds of dollars per year on day-to-day purchases.

And hundreds more on a new car or thousands on a new home.

As well, the GST rebate will be fully maintained for low-income Canadians.

This is a permanent tax cut for all Canadians.

It is part of our Conservative government's broader plan to ensure Canada's long-term growth and prosperity.

Our plan has included cuts to sales, income and business taxes.

In fact, since taking office, we've taken action to cut overall taxes by nearly 200 billion dollars.

That's why tax freedom day, the day you stop working to pay your taxes and start working for yourself and your family, arrived four days earlier this year.

And it will arrive even earlier next year.

Under our Conservative government, taxes are headed in only one direction: down.

That's why we promised to lower the GST from seven to six to five per cent.

And today we are delivering on that promise.

2008 is going be a happy new year for Canadian taxpayers.

Starting at midnight tonight, we'll all pay less tax on almost everything we buy.

And that's something we can all celebrate.

Happy New Year.

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The Prime Minister's Office - Communications
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