Despite a projected deficit of $194 million for the coming year, the province announced a number of tax cuts in the budget today, totalling $48.5 million.
On July 1, people in the middle tax bracket with see their tax rate drop from 12.8 per cent to 12.5 per cent, and people in the highest tax bracket will see a cut from 15.5 per cent to 13.8 per cent.
People over 65 will also now get a non-refundable tax credit of $5,000, up from $3681 last year.
The maximum amount for the low-income seniors' benefit - which is a refundable tax credit - will also rise to $900 from $803 a year.
The province says about 42,500 seniors will benefit from the change.
There is also a one per cent cut - from five to four per cent - on the small business tax rate, effect April 1, and the dividend tax credit will go up from 9.75 per cent to 11 per cent at the beginning of July.
The only tax hike is for smokers who will see an increase of one cent per cigarette and fine cut tobacco will be taxed at 32 cents a gram, up from 30 cents.
Budget includes $48.5 million in tax cuts
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Published on
March 29, 2010
- Published on July 1, 2010
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Staff ~ The Telegram
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Comments
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- Taxed
- - July 2, 2010 at 14:57:52
Politically Incorrect:
Disproportionally favour those in the upper income brackets ? You must be joking. The current tax regime does the complete opposite.
Why should those in higher income
brackets pay a greater percentage of tax? We should have a flat tax rate where everybody pays the same percentage. -
- Politically Incorrect
- - July 2, 2010 at 14:56:56
So we have a tax cut that will disproportionately favour those in the upper income brackets. Good. Now how are we going to pay for these tax breaks for those who need them least?
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- aPolitically aNincompoop
- - July 2, 2010 at 14:56:46
That's right! Tax the wealthier people, Give their money to us hard done by's. The working stiffs who don't save money, who don't create capital and reinvest it in the economy. The people who look for jobs not create jobs.
Raise the basic personal allowance amount - that still benefits the wealthy more... It's unjust. They have more disposable income. They supposedly earned it and now they get to reinvest it and earn more.
We should tax local businesses more so we need more capital from outside sources. Let's not let the local businesses compete with the greater outside. Let me drag down my neighbour to my level.
You know what - that guy went off and bought new stuff - he's lording it over me by having it. I should just take it - serve him right thinking he's better than me. How do I know he thinks that? Well, he never said anything... He just... has stuff.
I want! -
- Andrew
- - July 2, 2010 at 14:52:02
So the rich get richer? Super fantastic. Sounds like the rest of the world. Danny must be loving his tax cuts.
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- david
- - July 2, 2010 at 14:39:28
Sorry Politically Incorrect, but I can't sympathize for you because its not the Government's problem nor issue that you don't have a job that pays in those tax brackets.
Reality is that they pay more in taxes in proportion than the lower income tax bracket. Its simple as that. So, they do deserve a tax break more so. -
- Jack
- - July 2, 2010 at 14:39:26
The Williams Government definitely failed lower and lower middle class Newfoundlanders today as they didn't receive any tax cuts.
Furthermore, there was no gasoline tax cut to help eliminate the province's black eye as having Canada's highest gasoline prices.
An F to Danny Williams for rewarding the rich and punishing other Newfoundlanders.
Vote NDP or Liberal in the next election. -
- Taxed
- - July 1, 2010 at 21:45:39
Politically Incorrect:
Disproportionally favour those in the upper income brackets ? You must be joking. The current tax regime does the complete opposite.
Why should those in higher income
brackets pay a greater percentage of tax? We should have a flat tax rate where everybody pays the same percentage. -
- Politically Incorrect
- - July 1, 2010 at 21:44:12
So we have a tax cut that will disproportionately favour those in the upper income brackets. Good. Now how are we going to pay for these tax breaks for those who need them least?
-
- aPolitically aNincompoop
- - July 1, 2010 at 21:43:55
That's right! Tax the wealthier people, Give their money to us hard done by's. The working stiffs who don't save money, who don't create capital and reinvest it in the economy. The people who look for jobs not create jobs.
Raise the basic personal allowance amount - that still benefits the wealthy more... It's unjust. They have more disposable income. They supposedly earned it and now they get to reinvest it and earn more.
We should tax local businesses more so we need more capital from outside sources. Let's not let the local businesses compete with the greater outside. Let me drag down my neighbour to my level.
You know what - that guy went off and bought new stuff - he's lording it over me by having it. I should just take it - serve him right thinking he's better than me. How do I know he thinks that? Well, he never said anything... He just... has stuff.
I want! -
- Andrew
- - July 1, 2010 at 21:36:03
So the rich get richer? Super fantastic. Sounds like the rest of the world. Danny must be loving his tax cuts.
-
- david
- - July 1, 2010 at 21:14:44
Sorry Politically Incorrect, but I can't sympathize for you because its not the Government's problem nor issue that you don't have a job that pays in those tax brackets.
Reality is that they pay more in taxes in proportion than the lower income tax bracket. Its simple as that. So, they do deserve a tax break more so. -
- Jack
- - July 1, 2010 at 21:14:41
The Williams Government definitely failed lower and lower middle class Newfoundlanders today as they didn't receive any tax cuts.
Furthermore, there was no gasoline tax cut to help eliminate the province's black eye as having Canada's highest gasoline prices.
An F to Danny Williams for rewarding the rich and punishing other Newfoundlanders.
Vote NDP or Liberal in the next election.
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