The 1999 measures will ensure that an additional 200,000 lower-income Canadians will no longer pay federal income taxes, bringing to 600,000 the total number of taxpayers removed from the tax rolls due to both budgets. Introduction Tax reduction plays a key role in building a better tomorrow. The government is committed to providing substantial tax relief to Canadians on an ongoing basis. This will increase disposable incomes and enhance job creation and productivity through increased rewards for work, saving and investment . Tax revenues finance important government programs that Canadians need and value such as health care and education.
Taxes also pay for interest on the government's public debt.
A balance, therefore, must always be struck between keeping taxes low and providing a source of revenue for vital social and economic programs. The government is committed to substantially reducing taxes, as and when it can. For tax relief to be permanent, it must be affordable and not jeopardize the soundness of Canada's finances. For the first time since 1965, the 1999 budget provides tax relief for every taxpayer without the government having to borrow money to pay for it. Tax Policy Principles Tax policy, an important pillar of economic and social policy, is based on three fundamental principles.