MONCTON (CNB) - New Brunswickers will begin to benefit from the largest one-time tax reduction package ever introduced in the province when tax savings from The Plan for Lower Taxes in New Brunswick are reflected in their first paycheques after July 1, Premier Shawn Graham announced today.
The provincial government released the plan as part of the 2009-10 budget, which outlines more than $380 million in annual tax savings by 2012-13 when lower taxes are fully implemented. Personal income tax savings this year will be about $124 million.
"We are very pleased that New Brunswick taxpayers will be getting more money to save, invest and spend as they choose," said Graham. "Not only will this provide economic stimulus benefits in the short-term, but it will position New Brunswick as the place to be for job creation, and a place where your income goes further than in many other jurisdictions."
Graham made the announcement while addressing a joint session of the Rotary Club of Moncton and the Greater Moncton Chamber of Commerce, after visiting the home of Annick and Charles Gaudet, who expect to save about $250 between now and Christmas.
Other potential savings for New Brunswickers could be:
- a single individual making $25,000 per year will save $202 in 2009, increasing to $473 annually by 2012;
- a one-earner family with an annual income of $35,000 will save $325 in 2009, increasing to $744 annually by 2012;
- a single individual making $45,000 per year will save $276 by Christmas, increasing to $779 annually by 2012; and
- a couple each making $50,000 per year will save $662 by Christmas, increasing to $1,918 annually by 2012.
Key points in The Plan for Lower Taxes in New Brunswick include simplifying the tax system, lowering taxes, and providing targeted tax relief to seniors - through an increase to the low-income seniors' benefit - and to youth by doubling the tuition tax rebate.
Creating a growth-oriented business tax environment will be achieved by reducing the corporate tax rate to eight per cent from the current 13 per cent by July 1, 2012.
"Our plan is vital for our government's long-term economic growth strategy, and to move our province toward self-sufficiency," said Graham. "We are very pleased with the response to our lower tax plan. It clearly will set New Brunswick ahead of the pack nationally, and help us emerge from the economic downturn stronger than other jurisdictions."
New Brunswickers may calculate their tax savings and learn detailed information about The Plan for Lower Taxes in New Brunswick online.
EDITOR'S NOTE: The tax savings examples above assume that tax filers claim the personal amount, spousal amount, EI premium and CPP contributions, and that indexation is at two per cent from 2010 to 2012 (the minimum guaranteed by law).