March 22, 2000
(Finance)
$42 million in provincial
income tax savings in 2000
Finance Minister Lloyd Matthews said that
Newfoundland and Labrador taxpayers will benefit from $42 million in
provincial personal income tax reductions in 2000. This is a part of a $175
million, three-year tax reduction announced last fall.
"We committed to instituting personal
income tax reductions when fiscally responsible to do so," noted
Minister Matthews. "In November 1999, government announced $30 million
in personal income tax reductions for 2000. We wanted to share the fiscal
dividend with the taxpayers of this province, and this tax reduction did
just that. When the federal budget came down last month, an additional $12
million provincial tax cut occurred, and this was passed along to taxpayers,
for a total provincial savings of $42 million in 2000."
Combining both the provincial tax cut of $42
million with the federal income tax reduction of $18 million means that
taxpayers in this province will save a total of $60 million in personal
income tax this year. For a family of four, with one earner making $50,000,
that means tax savings of more than $700.
Media contact: Paula Dyke, Communications,
(709) 729-0329.
BACKGROUNDER
Personal Income Tax Reductions
-
In November, 1999,
the Government of Newfoundland and Labrador announced a three year tax
reduction strategy, which began with provincial personal income tax
reductions of $30 million in the 2000 taxation year, $60 million in 2001
and $85 million in 2002 and annually thereafter.
-
The reductions for the
year 2000 came into effect on January 1, 2000.
-
Resulting from tax
changes in the federal budget, the Government of Newfoundland and
Labrador will be reducing personal income tax by a further $12 million
in the 2000 taxation year, bringing the combined amount of provincial
personal income tax reductions to $42 million.
-
In addition, the federal
personal income tax reductions will result in a further savings for
Newfoundlanders and Labradorians of $18 million.
-
The total tax
savings in the year 2000 will be $60 million. The personal income tax
reductions announced in November, 1999 are reflected in pay cheques
since January 1, 2000. The tax reductions announced in the federal
budget will be reflected in pay cheques from July 1, 2000.
-
The following chart
shows the combined federal-provincial personal income tax savings for
taxpayers at various income levels for the 2000 taxation year.
* Assumes each earns the
income in the first column
2000 03 22
|