A one percentage point cut in the Goods and Services Tax that kicked in at midnight on January 1 will be one of the few new tax cuts Canadians should expect to see in 2008.
The GST dropped from 6% to 5%.
Further federal tax cuts are unlikely this year, as the economic outlook remains cloudy.
Many economists see the Canadian economy slowing to a growth rate of between 2% and 2.5% in 2008, as growth in the United States is expected to cool down.
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