Canada

Tax cut dilemma

MARY JANIGAN May 20 1996
Canada

Tax cut dilemma

MARY JANIGAN May 20 1996

A NEW NATIONAL TREND?

Last week’s Ontario budget was the biggest sign so far of what may become a trend across Canada—cutting taxes. Other recent tax-cutting measures:

Saskatchewan's NDP government last year cut its deficit surtax, which cost taxpayers about $250 a year since its introduction in 1992, by $150. That reduced the province’s take by $55 million a year.

> Nova Scotia’s Liberal government announced in its April 25 budget that it plans to cut personal income taxes by two percentage points, from 59.5 to 57.5 per cent of the federal tax, at a cost to the province of $32 million a year. That is to take effect in July, 1997.

> British Columbia’s NDP government announced cuts of two percentage points, over two years, in the provincial income tax rate in the budget it introduced on April 30, hours before calling a general election. The cuts will reduce the provincial rate from 52.5 to 50.5 per cent of the federal tax and cost the treasury $155 million annually. The Opposition Liberals countered by promising cuts totalling eight percentage points by the year 2000, eventually reducing annual revenue by about $1 billion.