Jeune magique et intellig
2009-04-15, 02:24 AM
The New Brunswick government has introduced legislation to implement a list of tax reforms announced by the finance minister last month.
The reforms will see personal income taxes reduced by $124 million in 2009-10, while businesses will get a break of about $20 million.
For individuals, the current four-rate, four-bracket tax structure will change to a two-rate, two-bracket structure by 2012.
By then, people making less than $38,000 a year will pay a tax rate of nine per cent, while those making more will pay a rate of 12 per cent.
The general corporate income-tax rate will be reduced from the current 13 per cent to eight per cent in 2012.
Effective Jan. 1, 2009, a company can make up to $500,000 a year and be considered a small business - a move that's expected to save businesses about $1 million in taxes.
As well, the plan improves the province's tuition rebate program for university graduates who work in the province.
The changes double the maximum lifetime rebate from $10,000 to $20,000, and the maximum annual rebate from $2,000 to $4,000.
The reforms will see personal income taxes reduced by $124 million in 2009-10, while businesses will get a break of about $20 million.
For individuals, the current four-rate, four-bracket tax structure will change to a two-rate, two-bracket structure by 2012.
By then, people making less than $38,000 a year will pay a tax rate of nine per cent, while those making more will pay a rate of 12 per cent.
The general corporate income-tax rate will be reduced from the current 13 per cent to eight per cent in 2012.
Effective Jan. 1, 2009, a company can make up to $500,000 a year and be considered a small business - a move that's expected to save businesses about $1 million in taxes.
As well, the plan improves the province's tuition rebate program for university graduates who work in the province.
The changes double the maximum lifetime rebate from $10,000 to $20,000, and the maximum annual rebate from $2,000 to $4,000.