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Release

Date: June 19, 2008

For Release: Immediate

Bold Liberal Green Shift Will Benefit All Canadians

OTTAWA - The Liberal Party of Canada's plan for the environment and the economy is a Green Shift that will cut income taxes, put a price on pollution, fight poverty and position Canada to be a leader in the 21st century global economy, Liberal Leader Stéphane Dion announced today.

'Canadians know that we need to be bold, not blind, to the challenges we are facing today, especially climate change,' said Mr. Dion at the unveiling.

Calling his plan 'as powerful as it is simple,' Mr. Dion said, 'the Liberal Green Shift will cut taxes on those things we all want more of - such as income, investment and innovation - and shift those taxes to what we all want less of: pollution, greenhouse gas emissions and waste.'

'Our plan makes important changes to the tax system that are broad-based and progressive. We need to make polluters pay and put every single penny back into the hands of Canadians,' he said.

Upon forming a government, Liberals will put a price on fossil fuels, like coal and natural gas, starting at $10 per tonne of carbon dioxide and rising to $40 per tonne over four years.

No new taxes will be levied on gasoline at the pump, since there is already an excise tax in place which equates to $42 per tonne of carbon dioxide.

Using the revenue generated through carbon pricing, a new Liberal government will implement measures like:

- Significant cuts to the first three marginal rates of income tax;

- A new, universal child tax benefit worth $350 per child, per year, on top of all existing child benefits;

- An $850 increase to the employment tax credit, which will also be made refundable and targeted at lower-income Canadians;

- A more generous Working Income Tax Benefit to help Canadians over the welfare wall;

- Additional tax credits and incentives for business to encourage innovation and green investment;

- An increase to the Northern Residents Deduction, and indexation going forward; and

- An immediate Green Rural Credit worth $150 for every rural tax-filer.

In addition to the Green Shift, Liberals will offer targeted benefits financed from the existing fiscal framework to help lift low-income Canadians out of poverty, including a $600 increase to the Guaranteed Income Supplement for seniors, and benefits for low-income Canadian families.

The Green Shift will be part of a broader environmental plan to help Canadians reduce their environmental footprint, become more energy efficient and save on energy costs. It will include complementary regulations and incentives such as home retrofits, energy efficient appliances and vehicles, and low carbon farm and forestry practices.

As a result of these measures, by the fourth year of the plan a two-earning family with two children and a combined income of only $20,000 will receive a benefit of almost $2,400. A family with two children earning $40,000 a year will save nearly $1,900, and a family with two children earning $60,000 will save over $1,300, as will a family earning $80,000.

'Our plan is designed to benefit all Canadians, not select groups, so that everyone can participate in the new economy while contributing to the fight against climate change,' said Mr. Dion.

Businesses will also have their tax rates cut so they can invest more money in their own practices, reduce their own polluting and increase their energy efficiency. In year four of the Liberal plan, the general corporate rate will be reduced by one point, as will the small business income tax rate.

It will also set aside $600 million to allow accelerated capital cost allowance rates for investment in industrial technologies that reduce green house gas pollution and significantly improve energy efficiency. And to further help private sector investments in research and development, the Science, Research and Experimental Development (SR&ED) tax credit will be more broadly available.

To assure Canadians that this plan is not a tax grab by government - that it will be revenue neutral - Mr. Dion said the Green Shift plan will be enacted into law and the Auditor General will be mandated to review it annually.

'The Liberal Green Shift plan will accomplish multiple goals: it will make real progress in the fight against the climate change crisis, while encouraging energy efficiency in the face of skyrocketing energy costs; and it will make our economy more competitive, while helping to decrease poverty,' concluded Mr. Dion.

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Contact:

Press Office Office of the Leader of the Opposition 613-995-5904

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