Tax savings start now
Published Friday July 3rd, 2009
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 starts 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 will be phased in over four years, starting this year. In 2009-2010 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 grow to over $380 million.
The amount you save on one paycheque may not seem like a lot, but over time that will add up, and it will mean you will keep a lot more of your hard-earned money to spend as you see fit. Here are some examples:
*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.
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 the doubling the tuition tax rebate should be a great incentive to retaining and repatriating our youth. We're also redoubling the low-income seniors' benefit 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 2012-2013, 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.
Shawn Graham is the premier of New Brunswick. Full details of The Plan for a Stronger Economy and The Plan for Lower Taxes in New Brunswick are available online at www.gnb.ca/theplan.
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The largest corporate tax cut in the history of NB may encourage business to set up shop here, but over time this strategy has proven temporary at best and pushes us to the lowest denominator ... think call centres and tax breaks of the McKenna era ... what was done then has not helped us now.
As for individual tax breaks (why is it called a break anyway, such a mis-nomer) if you are a senior your tax "break" is consumed with one trip in an ambulance, or the increase in your drug coverage (not to mention increases in other fees like licenses and certificates) ... so there is not net gain at the individual level.
Why are we not asking if this is a good place to live, are we healthy and literate. Are we happy.