EXPECTATIONS FOR TAX RELIEF - FEDERAL BUDGET 2000

EXPECTATIONS FOR TAX RELIEF - FEDERAL BUDGET 2000

78% of Canadians Prefer Income Tax Relief Over GST or Corporate Tax Reductions A Majority (52%) of Canadians are Looking for Income Taxes to be Reduced by More than 10% Over the Next 5 years

However Three-Quarters (73%) Expect the Government Will Deliver Reductions of 5% or Less

Ottawa, Ontario -- As Finance Minister Paul Martin prepares to table the federal budget for the fiscal year 2000-2001, a new Angus Reid/Globe and Mail poll finds more than three-quarters (78%) of Canadians prefer income tax relief rather than a reduction in the GST or corporate taxes. The survey also reveals that a majority (52%) of Canadians are looking for the federal government to reduce personal income taxes by more than 10 percent over the next five years, but most (73%) expect the government will deliver reductions of 5 percent or less.

These are the findings of an Angus Reid/Globe and Mail poll conducted between January 27th and February 2nd 2000. The poll is based on a randomly selected sample of 1,500 Canadians. The results are within  2.5 percentage points, 19 times out of 20, of what they would have been had the entire Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 1996 Census data.

78% of Canadians Prefer Income Tax Relief Over GST or Corporate Tax Reductions

More than three-quarters (78%) of Canadians feel that income tax relief for middle and lower-income Canadians (44%) or for all Canadians (34%) should be given the highest priority if the government decides to reduce taxes in the upcoming budget. One in five (21%) feel that priority should be given to reducing the goods and services tax, while only 1 percent selected reducing corporate taxes.

• Quebec residents (52%) are more likely than residents of other provinces to support tax relief for middle and lower-income earners.
• Not surprisingly, Canadians earning less than $60,000 (50%) are most likely to select tax reduction aimed at those with middle and lower-incomes.
• Albertans (47%), 18 to 34 year olds (40%), and those earning $60,000 or more (46%) are most likely to feel that tax relief should be given to all Canadians.

A Majority (52%) of Canadians are Looking for Income Taxes to be Reduced by More than 10% Over the Next 5 years

Most Canadians (52%) are looking for personal income taxes to be reduced by more than 10 percent over the next five years including one-quarter (26%) who believe that income taxes must be reduced by more than 20 percent at the end of this five year period. In contrast, 48 percent indicate that a 10 percent reduction or less is required.

• Quebec residents (65%) are more likely than residents in other provinces to expect a more than 10 percent reduction in income taxes.
• Canadians aged 35 and over (55%) are more likely to expect a greater that 10 percent decrease in taxes than those under 35 years (47%).
• Canadians earning less than $30,000 (62%) are more likely to expect a greater than 10 percent reduction in taxes than those who earn more than $30,000 (49%).

However, Three-Quarters (73%) Expect the Government Will Deliver Reductions of 5% or Less

Canadian are skeptical about the tax reductions they will actually receive. Three-quarters (73%) of Canadians feel that at the end of the five year period, they will receive a tax cut which is 5 percent or less.

For more information on this news release, please contact:

Darrell Bricker
President - Public Affairs
Angus Reid Group
(416) 324-2900