I really hope this is the way this pans out:

The Conservatives may keep some of the personal income tax breaks promised by the previous Liberal government, even though they said during the election campaign they wouldn't do so. With a budget expected in about a month, sources close to the government say the Tories have much more money to work with than was expected and may keep the cuts, which are already in effect, in order to limit a possible political backlash over taxes. Finance Minister Jim Flaherty is silent on the issue.

Where they may have found the money is actually just looking at the plan and basic economics. First, as noted, if the new rural overlords consider that the GST plan to replace the income tax cut do not overlap well leaving a huge clawback, there is no need to not introduce the income tax cut so that it aligns with what the amount people have been paying. Then, as a go forward from their date to introduce their GST, the successes of the Liberal income tax reductions of 13 years in strengthening the economy may simply have to be admitted as being blatantly obvious evidenced by having more money in Federal coffers than expected. A one-percent GST cut is a nice little perk but wouldn't it be nice if someone like Flaherty with practical experience but maybe out of the tax planning loop before the election got senior CPC party guys into a room and gave them a lesson in basic fiscal theory.