Finance Minister Ralph Goodale welcomed the passage of Budget 2005 legislation after the budget bill (C-43) received royal assent.

Goodale reiterated his commitment to reintroduce legislation at the earliest opportunity that would eliminate the corporate surtax in 2008 and reduce the general corporate income tax rate to 19% from 21% by 2010. Those changes are contained in the 2005 budget.

“These measures will maintain Canada’s corporate tax rate advantage over the United States, attract investment, generate economic growth and create well-paying jobs for Canadians,” Goodale said in a statement.

“Despite the difficulties posed by the current minority situation in the House of Commons, we are moving forward on the highest priorities of Canadians in areas like child care, community infrastructure, post-secondary education and the environment, while also providing tax reductions and laying the groundwork for a more productive economy,” he added. “This legislation provides for the offshore agreements with Newfoundland and Labrador and Nova Scotia, and it does all this without compromising the benefits that Canadians enjoy from living in the only G7 country in a surplus position.”

The buget also removed the limitations on the amount of foreign content investors and pensions plans can hold in registered plans.