Mini-budget means less income tax
Doug Ashbury
Northern News Services
Yellowknife (Oct 20/00) - This week, Canadians found out they will get more of their money back, if they vote Liberal, that is.
In his mini-budget statement, Martin announced a plan which would accelerate and deepen tax reductions announced in the 2000 budget.
Martin's mini-budget
* Lower the 17 per-cent tax rate to 16 per cent on taxable incomes up to $30,754.
* Lower the 24 per-cent tax rate -- reduced from 26 per cent in the 2000 budget -- to be reduced further to 22 per cent on taxable incomes between $30,754 and $61,509.
* Reduce the 29 per-cent tax rate to 26 per cent on taxable incomes between $61,509 and $100,000. The 29 per-cent rate for over $100,000 is unchanged. |
Under the tax changes, a family of four with two incomes totalling $60,000 will pay about $1,000 less income tax compared to last year. In another example, single parents earning $33,000 last year paid about $900 in income tax. Next year, under the new tax schedule, their net taxes will be reduced by about $1,000 not only dropping them from the tax roles but also making them net beneficiaries.
"I think its a great mini-budget. Especially for individuals who make up to $100,000 a year -- that's who the tax breaks are targeted at," Andy Wong, an accountant with Yellowknife's MacKay and Partners said.
"They are essentially reducing the tax rate for that income group," he said.
Wong adds Ottawa has introduced over $30 billion in tax relief -- in addition to the $58 billion announced in the 2000 budget -- over the next five years.
"It's a pretty significant mini-budget."
Wong said an individual making $30,000 will see about $350 in tax savings. Those making $61,000 will see a tax saving of about $1,200, he adds.
As well, Wong also said full-time students and the disabled will benefit from the mini-budget.
Martin announced the federal government will increased the education tax credit to $400 per month from $200 per month. The disability tax credit is to go to $6,000 from $4,293.
On a final note, Wong said more pocket money from tax reductions means Yellowknifers will have more in hand to plan for the future.
Or, more to spend.
