Tag Archives: Tax Reductions

Moving Manitoba families forward with tax cuts

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Finance Minister Rosann Wowchuk introduced the Budget Implementation and Tax Statutes Amendment Act which would implement Budget 2011 and provide $65 million in tax cuts for families and businesses this year.

We have stayed on track with our five-year economic plan to ensure families have access to vital front-line services and also deliver significant tax savings for families. This year, tax cuts will save a family of four $212 and by 2014 that same family of four will save $374 a year.

The bill will deliver on nearly $110 million in new tax reductions once they are fully implemented and would freeze or reduce major taxes for the 12th consecutive year. Tax reductions proposed for families and property owners include:

• Increasing the basic Education Property Tax Credit by $50 to $700, which would save renters and homeowners an extra $16 million this year.

• Increasing basic personal income tax exemptions by $1,000 over four years, starting with $250 this year. By 2014, an additional 22,000 Manitobans would no long pay Manitoba income tax.

• Implementing a new Children’s Arts and Cultural Activity Tax Credit, to help parents introduce their children to activities such as art, music, drama, language instruction, environmental activities and personal tutoring.

• Increasing the maximum seniors’ Education Property Tax Credit by $150 to $950 in 2011. This credit would rise by $75 to $1,025 in 2012 and by another $75 to $1,100 in 2013.

• Increasing the Primary Caregiver Tax Credit by 25 per cent to a maximum of $1,275 to assist families caring for elderly Manitobans and other loved ones.

• Increasing the Farmland School Tax Rebate to 80 per cent from 75 per cent, which would save farmers an additional $2 million this year for a total of over $35 million annually.

This legislation would guarantee that provincial revenue sharing with municipalities will be no less than one-seventh of provincial sales tax revenue.

The minister noted the provincial small business income tax and the general corporation capital tax were completely eliminated this year. Other tax reductions for business would include:

• Increasing the Green Energy Equipment Tax Credit to 15 per cent from 10 for installations of geothermal heating systems.

• Creating a new Cultural Industries Printing Tax Credit to provide a 15 per cent refundable credit to support Manitoba-based printers.

• Providing a Capital Tax Exemption for small banks to attract and encourage the expansion of small, innovative financial institutions in Manitoba.

• Introducing a new employee share purchase plan tax credit to help business succession planning.

http://www.mysteinbach.ca/blogs/2253.html

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Tax system needs change

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The Ontario Government is introducing the biggest and most comprehensive tax reform package in decades.
Tax reductions and harmonizing the sales tax are part of a total tax reform package, which, over the next three years, would include $10.6 billion in tax relief for Ontario citizens and $4.5 billion in tax relief for business.
All Ontario taxpayers would see a 16.5% cut in the tax rate on their first $36,848 of taxable income. That is the lowest rate of any province in Canada, and would affect 93% of Ontario taxpayers.
Every low-and middle-income person (including children) will be provided with a permanent annual $260 sales tax credit and the Ontario Property Tax Credit would provide an additional $270 million in property tax relief to tenants and owners.
The proposed HST would not affect items you currently pay both GST and PST on, nor will it affect the following exempt items:
– Basic groceries — Prescription drugs — Municipal public transit — Health and education services — Legal aid
– Most financial services — Auto insurance — Residential rents — Condo fees — Resale homes
– New homes under $400,000 — Child care
– Children’s diapers, clothing and footwear — Children’s car seats and car booster seats — Feminine hygiene products — Books
The proposed harmonization will require federal legislation to levy the provincial portion of the HST which must be voted upon by federal MPs. The federal government has encouraged the provinces to harmonize taxes for some time. As an incentive, Ontario has negotiated $4.3 billion from the federal government to help ease the transition. This money will be passed on to individual Ontarians. Single people earning under $80,000 per year will receive $300, while couples and families earning under $160,000 will receive $1,000.
In order to spend an additional $1,000 on the provincial portion of the HST, one would have to spend $12,500 on items or services on which you currently pay just GST.
Ontario is the business and manufacturing centre of the country, so, naturally, we stand to gain the most by encouraging new investment and increasing competition. When Ontario emerges from this global recession, the world’s economy will be fundamentally different; Ontario must be ready to compete. We cannot attract investment and jobs in the 21st century with a tax system from the 1960s, which is currently in place in Ontario.
We will provide business with input tax credits to effectively eliminate the provincial sales tax that is currently paid through each step of production; from the purchasing of raw materials to shipping, wholesalers and distributors. Ontario is the only jurisdiction in the world that exports 80% of what we make, yet taxes the inputs needed to make these goods. Removing the many layers of embedded taxes will decrease the price of goods.
As a responsible government, during this time of serious economic recession, we have engaged in fundamental tax reform. A vital feature is moving to a single sales tax which is integral to ensure Ontario has a strong future by attracting investment and maintaining competitiveness.
http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=2125923

The Ontario Government is introducing the biggest and most comprehensive tax reform package in decades.

Tax reductions and harmonizing the sales tax are part of a total tax reform package, which, over the next three years, would include $10.6 billion in tax relief for Ontario citizens and $4.5 billion in tax relief for business.

All Ontario taxpayers would see a 16.5% cut in the tax rate on their first $36,848 of taxable income. That is the lowest rate of any province in Canada, and would affect 93% of Ontario taxpayers.

Every low-and middle-income person (including children) will be provided with a permanent annual $260 sales tax credit and the Ontario Property Tax Credit would provide an additional $270 million in property tax relief to tenants and owners.

The proposed HST would not affect items you currently pay both GST and PST on, nor will it affect the following exempt items:

– Basic groceries — Prescription drugs — Municipal public transit — Health and education services — Legal aid

– Most financial services — Auto insurance — Residential rents — Condo fees — Resale homes

– New homes under $400,000 — Child care

– Children’s diapers, clothing and footwear — Children’s car seats and car booster seats — Feminine hygiene products — Books

The proposed harmonization will require federal legislation to levy the provincial portion of the HST which must be voted upon by federal MPs. The federal government has encouraged the provinces to harmonize taxes for some time. As an incentive, Ontario has negotiated $4.3 billion from the federal government to help ease the transition. This money will be passed on to individual Ontarians. Single people earning under $80,000 per year will receive $300, while couples and families earning under $160,000 will receive $1,000.

In order to spend an additional $1,000 on the provincial portion of the HST, one would have to spend $12,500 on items or services on which you currently pay just GST.

Ontario is the business and manufacturing centre of the country, so, naturally, we stand to gain the most by encouraging new investment and increasing competition. When Ontario emerges from this global recession, the world’s economy will be fundamentally different; Ontario must be ready to compete. We cannot attract investment and jobs in the 21st century with a tax system from the 1960s, which is currently in place in Ontario.

We will provide business with input tax credits to effectively eliminate the provincial sales tax that is currently paid through each step of production; from the purchasing of raw materials to shipping, wholesalers and distributors. Ontario is the only jurisdiction in the world that exports 80% of what we make, yet taxes the inputs needed to make these goods. Removing the many layers of embedded taxes will decrease the price of goods.

As a responsible government, during this time of serious economic recession, we have engaged in fundamental tax reform. A vital feature is moving to a single sales tax which is integral to ensure Ontario has a strong future by attracting investment and maintaining competitiveness.

http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=2125923

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