July 3, 2009
EDITOR'S NOTE: The following op-ed piece was released today by Premier Shawn Graham. (The tax savings examples below assume that tax filers claim the personal amount, spousal amount, employment insurance premiums and Canada Pension Plan contributions, and that indexation is at two per cent from 2010 to 2012, the minimum guaranteed by law).
New Brunswickers who check their paycheques over the next few weeks may notice a pleasant surprise. That's because the results of our Plan for Lower Taxes in New Brunswick start showing up on paycheques after July 1.
Our government took the extraordinary step of providing the largest one-time tax reduction package ever introduced for New Brunswickers. The Plan for Lower Taxes in New Brunswick will be phased-in over four years, starting this year. In 2009-10 alone, these reductions will result in about $144 million in tax savings for New Brunswick residents and businesses. By the fourth year, these savings will increase to more than $380 million.
The amount that you save on one paycheque may not seem like a lot, but over time that will add up, and it will mean that you will keep a lot more of your hard-earned money to spend as you see fit. Here are some examples:
You might be wondering what our plan means for you as an individual. If so, I encourage you to calculate your own tax savings by visiting www.gnb.ca/theplan.
We truly believe that this is an excellent strategy for government in difficult economic times. This will give hard-working New Brunswickers more control over their personal finances, help small business owners who file as individuals to reinvest and create more jobs, and put more money into our economy. In addition to stimulating the economy, these changes - including doubling the tuition tax rebate - should be a great incentive to retaining and repatriating our youth. And once again, we're doubling the low-income seniors' benefit. In 2007 we doubled it to $200 from $100, and now we're doubling it to $400 by 2010, to help our parents and grandparents make ends meet.
In addition to this boost to individual New Brunswickers, we are directing support to businesses by lowering their taxes to help maintain and create jobs, and providing enhanced credits to expand the availability of capital to our small businesses. In this fiscal year, these measures amount to $20 million. By 2012-13, those savings will have more than doubled, to $44 million.
These tax savings and the other initiatives of our Plan for a Stronger Economy are exactly what our province needs right now. They are already positioning our economy for both
recovery and new growth - growth in our economy, our population, our workforce, our communities and our overall prosperity. It clearly will set New Brunswick ahead of the pack
nationally, and help us emerge from the economic downturn stronger than other jurisdictions, and well on track to achieving self-sufficiency.