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Highlights of the federal fiscal update

Canadian Press

Ottawa — — Rate for lowest income tax bracket to be reduced one percentage point to 15 per cent, retroactive to last Jan. 1.

— One percentage point reduction to each of the middle tax rates by 2010.

— Increase in the income level at which the top tax rate applies, starting in 2010.

— Immediate $500 increase to the basic personal amount of income all Canadians can earn without paying federal tax.

— A Working Income Tax Benefit for low-income earners starting in 2008.

— Elimination of the federal capital tax for business next year — two years ahead of schedule.

— Forecast surplus of $96.8-billion over six years to be trimmed to $15.5-billion after tax cuts, new spending, contingency reserve and other factors.

— Economy forecast to grow by 2.8 per cent this year, 2.9 per cent next year, and 3.1 per cent in 2007.

— Aim to reduce debt-to-GDP ratio to 20 per cent by 2020.

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