NLIS 6 October 20, 2000 (Finance) Provincial, federal tax
cuts put millions Taxpayers in Newfoundland and Labrador will benefit significantly from the federal tax reduction initiatives announced October 18, Finance Minister Lloyd Matthews said today. "When combined with the three-year provincial tax reduction initiative announced in November 1999, the total cumulative return for taxpayers in this province will be approximately $400 million over the next three years," said the minister, noting $187 million will come from provincial tax cuts. "In 2001 alone, taxpayers in this province can look forward to savings of $148 million, $88 million from federal cuts and $60 million from the province�s tax initiatives," said Minister Matthews. "These tax reductions are broadly based, but are good news particularly for middle-income earners who contribute substantially to tax revenues," said the minister. On an individual level, Minister Matthews pointed out that a single taxpayer earning $30,000 a year will save $440 in combined federal and provincial personal income taxes in 2001, while a family of four with one earner making $30,000 will see combined total savings of $730 in 2001. Cumulative tax cuts in 2000 and 2001 will add up to $799 for a single taxpayer earning $30,000 a year and $1,523 for a family of four with one earner making $30,000. "This tremendous reinvestment by both levels of government back to the taxpayer is sure to boost consumer confidence and drive consumer spending," said Minister Matthews. "That will have a very positive impact on our economy." "While many lower-income earners pay little personal income tax, they also benefit from substantial federal and provincial programs such as the federal Canada Child Tax Benefit and Supplement and the provincial Newfoundland and Labrador Child Benefit, the HST credit and the seniors benefit," said Minister Matthews. "A one earner family of four making $20,000 a year will receive combined benefits of $4,945 in 2001, an increase of $1,327 from 1999." NOTE TO EDITORS: Chart to follow
Media contact: Lynn Barter, Communications, (709) 729-0084. 2000 10 20 2:55 p.m.
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