How do you spell relief!

Tax cuts in the land that loves taxes more than.... well more than anything! I must be dreaming!

More than Hedley loves to gross out people... More than Gore loves to talk about the poor drowning polar bears... More than Dorothy loves Toto! Yes Canadian politicians love to tax their constituents!

But believe it or not...once again the Conservative Government in Ottawa has done what no Canadian voter expects from their Government - they kept another promise. AND... imagine this newbies... they reduced both income taxes AND scheduled a gst reduction for Jan 1 2008. A reduction of 16.7% in the gst rate.

Unaccustomed as we are with... common sense politics in Ottawa, those of us born in time to live through the huge deficit building Liberal years from 1967 onward (one of Trudeau's legacies) it is incredible that we can actually begin to believe that taxes can be reduced - yes newbies - don't be afraid - the sky is not falling and the wheels won't come off - its just a tax cut - oither countries have them, and now we have a Government that knows the truth - we can have them too!

Despite the opposition parties whining and complaining last time the gst was cut - guess what? Canadians like those cuts - they really like them Sally! Polls suggest we like tax cuts much more than we like opposition politicians!

But a whole generation of voter was starting to believe the lie - that tax cuts were extinct - due to global warming caused by unstoppable hot air from Ottawa.

So hey... Mr. Layton and Mr Dion, you both came out with lame criticism today, aren't you just showing how out of touch you are with what over taxed Canadians really want? You said that there will be no real benefit - Mr. Layton, you said the tax cuts were going to open up the gap between rich and poor... ( holy cow can someone get that guy some new lines? Anyone?)

But even Don Drummond, chief economist for TD Bank, said the GST cut will have a direct and immediate impact on Canadians. And besides - there was also an increase to the personal excemption amount which was long overdue but which successive Liberal governments were unwilling to acknowledge... and the personal excemption is increasing again in Jan 2009 which really helps low income families and single income earners.

Just the facts Ma'am... now here they are:

An increase in the basic personal amount exemption to $9,600 from $8,929, retroactive to Jan. 1, 2007;

Two years later, on Jan. 1, 2009, the basic personal amount exemption will be increased to $10,100;

Reducing small business income tax to 11 per cent by 2008;

$10 billion in federal debt relief; (thanks Pierre - we are still dealing with this... )

The lowest personal income tax rate moves back to 15 per cent from 15.5 per cent, effective Jan. 1 2007, - it shouldn't have been raised last time - so they went back and cleaned up their mistake - how rare for politicians. Well at least previous governments.

The government will also cut corporate tax rates by one percentage point in 2008 with cuts each year of one percentage point, bringing corporate tax rates down to 15 per cent by 2012 from 22 per cent today.

Canada's corporate taxes will be the lowest among major industrialized nations which means more investment in Canada - and more Canadians working and earning.

And that is the point of the exercise. Isn't it?