http://www.canada.com/theprovince/ne…bad2a4&k=80343
OTTAWA — Finance Minister Jim Flaherty rolled out a multiyear $60-billion package of tax cuts Tuesday, in the form of a GST cut and broad-based reductions in personal and business taxes.

The tax relief was part of the government’s fall economic update, which in all intent and purposes was a mini-budget. And the tax cut measures will go to a vote before Parliament as early as Wednesday.

The relief plan marks a departure for the federal Conservative government, which has preferred to issue tax cuts through targeted measures — much to the chagrin to economists and tax-cut advocates. Moreover, it fulfills pledges issued in the most recent Speech from the Throne.

Roughly $11-billion of the tax relief proposed for individuals is retroactive to last Jan. 1. And the GST cut, to 5% from 6%, would take effect on Jan. 1.

Regardless, the government indicated in the update it has more than enough room to finance the tax relief — planning for a $10-billion surplus for this year and about $53-billion over the next five fiscal years.

Mr. Flaherty said the measures announced will bring the federal tax burden to its lowest level in more than nearly half a century.

“As a result of the steps I am announcing, the purchasing power of Canadians will go up; take-home pay for all Canadians will go up; and Canadian businesses, from neighbourhood coffee shops to large corporations, will have more freedom to create jobs and make further investments in their businesses,” the minister said.

The Conservative government had promised a second cut to the GST, from 6% to 5%, prior to 2011. But with Ottawa awash with surplus cash, economists say it could afford to lop off another percentage point off the sales tax immediately.

Other highlights in the Conservative tax cut plan:

— A reduction in the lowest personal income tax rate to 15%, from 15.5%, retroactive to last Jan. 1. This would take it to the level set by the former Liberal government two years ago, before the Conservatives boosted it to 16% in the 2006 budget to help finance the first GST reduction.

— The basic personal amount will increase $9,600, from $8,929, also retroactive to last Jan. 1.

— Corporate income tax is set to decrease to 15% by 2012, from its current 22% level. Corporate taxes were set to gradually drop to 18.5% in 2011, by the Conservatives likely acted in response to heavy pressure from the Liberal Party which has recently played up the need for deeper cuts to business taxes.

Stéphane Dion, the Liberal Party leader, has been critical of Conservative plans to cut the GST, and has pushed for broad-based personal tax cuts and a rollback of corporate income taxes. He reaffirmed on Tuesday that the Liberal Party would not trigger an election over the minority Conservative government’s fiscal and economic update.

Dale Orr, managing director of economic forecaster Global Insight Canada, said he was “not overly surprised” to learn that Mr. Flaherty will proceed with a second GST cut earlier than expected.

“My preference would have been for Ottawa to use the precious room it has today for broad-based tax cuts,” Mr. Orr said, adding that Ottawa should wait until all provinces agrees on sales tax harmonization before moving to cut the consumption levy.