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NEWS RELEASE

For Immediate Release
2010PREM0193-001340

Oct. 27, 2010

Office of the Premier

 

 

PREMIER ANNOUNCES TAX RELIEF FOR BRITISH COLUMBIANS

 

VICTORIA – Premier Gordon Campbell tonight announced a 15 per cent reduction in personal income tax rates, for the first $72,000 of personal income for all British Columbians. This is the second-largest personal income tax relief measure in B.C. history, ensuring B.C. individuals pay the lowest provincial income tax in Canada, on incomes up to $130,000.

 

“Our government has always felt that the best thing we can do to support British Columbia’s families and our economy is to leave more money in people’s paycheques so they can make the decisions about what is best for themselves and their families,” said Premier Campbell. “This new tax relief will inject $568 million into our economy and create new opportunities for families and individuals across British Columbia.”

 

Subject to legislative approval, the new 15 per cent rate reduction applies to earnings up to $72, 293, and is effective Jan. 1, 2011. That tax relief will save individual B.C. taxpayers up to $616 annually. As a result, British Columbian individuals will continue to pay the lowest provincial income taxes in Canada up to $130,000 in earnings. For comparison, someone making $45,000 in Alberta would pay 64 per cent more than in B.C., a difference of $990. Someone in Quebec would pay 180 per cent more, a difference of $2,787.

 

This new tax relief builds on previous income tax relief measures, including a 25 per cent across-the-board personal income tax reduction in 2001. With this tax reduction, most taxpayers’ provincial income taxes have been reduced by at least 47 per cent since 2001. An additional 365,000 British Columbians pay no provincial income tax.

 

Premier Campbell also laid out three new steps the Province will take to enhance early childhood learning and ensure B.C. students are entering school ready to learn and meeting targets for reading, writing and math.

 

“Right now in British Columbia one in five students who complete Grade 4 do not read, write or have math skills at a Grade 4 level. It’s important for us to find ways to help that 20 per cent of students do better. We know the answer is to invest in early childhood learning,” said Premier Campbell. “It’s important that we make sure that every one of our children is lifted up to take full advantage of the opportunities that lie before them.”


 

 

New education measures announced by the Premier are:

 

·         Build an additional 100 StrongStart BC early learning centres, which provide school-based early learning services for adults and their young children, aged birth to five years, at no cost to families.

·         Beginning next school year, the Province will conduct early childhood learning assessments for every five-year-old child entering Kindergarten to tailor educational programs to meet their learning needs.

·         A commitment to ensure that, within the next five years, every child that graduates from Grade 4 in B.C. will be reading, writing and doing math at a Grade 4 level.

 

“These new measures are important steps to build confidence in B.C.’s middle income families,” said Premier Campbell. “I know many families are living paycheque-to-paycheque. This tax relief means that all taxpayers will have more take-home pay. It will help families with their home economies and, as it does, it will help stimulate the provincial economy. We will continue to engage British Columbians in the months ahead on how we can work together on the issues that are most important to them.”

 

A downloadable version of a graph illustrating income tax reductions is available at: www.gov.bc.ca/premiers2010address

 

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Two backgrounders follow.

 

Media Contact:

 

Dale Steeves

Director of Communications

Office of the Premier

250 361-7783

 

 

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.

 


 

BACKGROUNDER 1

For Immediate Release
2010PREM0193-001340

Oct. 27, 2010

Office of the Premier

 

 

 

NEW TAX RELIEF FOR BRITISH COLUMBIANS

 

Subject to approval of the legislature, the tax rates for the first two personal income tax brackets will be reduced by 15 per cent effective Jan. 1, 2011, which reduces the income tax payable for all taxpayers.

 

For example, someone earning $40,000 will save $236 annually. Someone earning $72,293 or more will save $616 annually, and a two-income family earning $120,000 will save up to $944 annually.

 

As a result, individuals earning up to $130,000 will pay the lowest personal income taxes in Canada.  For comparison, someone making $45,000 in Alberta would pay 64 per cent more than in BC, a difference of $990. Someone in Quebec would pay 180 per cent more, a difference of $2,787.

 

Planned 2011 Tax Cut

Income

Before reduction

After reduction

Tax cut

Per cent reduction

$20,000

$138

$70

-$68

-49 per cent

$30,000

$957

$813

-$144

-15 per cent

$40,000

$1,565

$1,329

-$236

-15 per cent

$50,000

$2,335

$1,981

-$354

-15 per cent

$60,000

$3,105

$2,633

-$472

-15 per cent

$70,000

$3,875

$3,285

-$590

-15 per cent

$72,000

$4,029

$3,415

-$614

-15 per cent

$80,000

$4,860

$4,244

-$616

-13 per cent

$90,000

$6,035

$5,419

-$616

-10 per cent

$100,000

$7,264

$6,648

-$616

-8 per cent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Income Tax Rates -2011 Tax Year

Tax bracket

Current rate

New rate

$0 to $36,146

5.06 per cent

4.30 per cent

$36,146 to $72,293

7.70 per cent

6.525 per cent

$72,293 to $83,001

10.50 per cent

10.50 per cent

$83,001 to $100,787

12.29 per cent

12.29 per cent

Over $100,788

14.70 per cent

14.70 per cent

 

 

 

 


 

 

The benefit of this tax reduction to taxpayers totals $568 million in 2011-12 rising to $638 million in 2013-14. Government continues to be on track to balance the budget in 2013-14 as committed in previous budgets.

 

Combined with previous tax cuts since 2001, the tax savings are 100 per cent for taxpayers at $15,000 in income, 49 per cent savings at $50,000 and up to 42 per cent savings for incomes at $100,000. For most taxpayers, provincial income taxes have been reduced by at least 47 per cent and an additional 365,000 people no longer pay any B.C. income tax.

 

British Columbia Tax Cuts Since 2001

Income

2001 tax paid

2011  tax paid

Cumulative tax reduction

Per cent reduction

$15,000

$459

$0

-$459

-100 per cent

$20,000

$879

$70

-$818

-93 per cent

$30,000

$1,719

$813

-$908

-53 per cent

$40,000

$2,694

$1,329

-$1,365

-51 per cent

$50,000

$3,884

$1,981

-$1,903

-49 per cent

$60,000

$5,074

$2,633

-$2,441

-48 per cent

$70,000

$6,264

$3,285

-$2,979

-48 per cent

$80,000

$7,824

$4,244

-$3,580

-46 per cent

$90,000

$9,634

$5,419

-$4,215

-44 per cent

$100,000

$11,504

$6,648

-$4,856

-42 per cent

 

Since 2001, government has reduced taxes for individuals five times, including a 25 per cent tax cut in 2001, implementation of the B.C. Tax Reduction Credit in 2005, a 10 per cent tax cut up to $100,000 in 2007, a five per cent tax reduction for the first two tax brackets in 2008 and increasing the basic personal income tax credit by 17 per cent in 2010.

 

Support for Business and the Economy

 

In addition to tax relief for families and individuals, planned tax reductions for small and large businesses will stabilize and stimulate B.C.’s economy:

 

·         The small business income tax rate will be reduced to zero by April 1, 2012.

·         The corporate income tax rate will be reduced to 10 per cent by 2011, making it the lowest in Canada.

·         The corporate income tax rate in B.C. will be the lowest in the G7 nations by 2012.

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 Media Contact:

 

 

Dale Steeves

Director of Communications

Office of the Premier

250 361-7783 

 


 

BACKGROUNDER 2

For Immediate Release
2010PREM0193-001340

Oct. 27, 2010

Office of the Premier

 

 

 

PREMIER ANNOUNCES FOCUS ON EARLY LEARNING

 

Tonight Premier Campbell outlined a three-point plan to enhance early learning programs and improve B.C.’s education system.

 

1.      Expand the StrongStart BC network: There are currently over 300 StrongStart BC programs across the province. Over the next five years the Province will create an additional 100 StrongStart BC Centres at an operating cost of $3 million per year.

 

2.      Early Childhood Learning Assessment: Beginning in the 2011-12 school year, every student entering kindergarten will receive a voluntary early childhood learning assessment, which will allow educators to identify children’s unique needs when they enter the school system so their education can be tailored for grades 1-4. The program will cost $1.6 million in the first year.

 

3.      Reading, Writing and Math at Grade 4 Level: Approximately 20 per cent of children completing Grade 4 are not reading, writing or doing math at a Grade 4 level. The Province commits that within five years, every child completing Grade 4 will be reading, writing and doing math at a Grade 4 level. This will require new support and training for teachers to identify children’s unique needs and provide intensive assistance to ensure all students meet Grade 4 learning outcomes. The cost will be $700,000 in the first year and $8.9 million in subsequent years.

 

-30-

 

Media Contact:

 

Dale Steeves

Director of Communications

Office of the Premier

250 361-7783 

 

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.