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Phase-out of the federal capital tax over
five years starting January 1, 2004 (and eliminating it for medium-sized
businesses as early as 2004). This proposal will be implemented by increasing
the threshold for application of the tax from $10 million to $50 million of
capital for taxation years ending after 2003 and by reducing the tax rate from
2004 to 2008.
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Reduce Employment Insurance premium rate for
employees from $2.10 per $100 of insurable earning to $1.98 in 2004 (1.4 times
for employers). The government will consult on a new EI rating-setting regime
for 2005 and beyond.
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Increase in registered retirement savings
plan and registered pension plan contributions limits to $15,500 for 2003
$16,500 for 2004
$18,000 by 2006 and index these new limits.
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Reduce the Air Travellers Security Charge
to $7 from $12 for one way travel and from $24 to $14 for round-trip travel.
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Reduce the corporate tax rate of the resource
sector to 21% over five years and making changes to the tax structure of this
key sector.
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50% increase in the small business deduction
limit to $300,000 over four years.
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Expand the capital gains rollover measure by
eliminating the $2 million limit on the amount of the original investment on
which the deferral is allowed and the $2 million limit on the amount that can
be reinvested in shares of eligible small business corporations.
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Increase in the maximum Canada Child Tax
Benefit from $2,444 to $3,243 (for the first child), to $3,016 for a second
child and $3.020 for each additional child by 2007.
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Other tax measures include an extension in
the temporary mineral exploration tax credit, enhancing the Film and Video
Production Services Tax Credit, expanding the list of expenses eligible for
the medical expense tax credit and a proposal that the ethanol or methanol
portion of blended diesel fuel be exempt from the federal excise tax on diesel
fuel.
