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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 


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