Ontario Budget 2001 : PROVINCE DELIVERS 20 PER CENT PERSONAL INCOME TAX CUT

Examples: Combined Impact of Ontario's Tax Cuts

The following examples illustrate the combined impact of the tax measures proposed in the 2001 Budget, together with the tax cuts already in place, on individuals and families for a variety of incomes and circumstances.

Example 1

• A single parent with two children (ages three and six) earns $50,800 a year as a registered nurse, pays $850 a year in union and professional dues and contributes $1,350 to an employer pension. Day care for the children costs $12,600 a year.
  
  
• This family is already paying $845 less Ontario personal income tax—a saving of 34 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this family a further $900 in Ontario personal income tax, an additional 55 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $1,745, or 70 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $50 to this family on its three-bedroom home in Peterborough, assessed at $109,000.

Example 2

• One parent earns $40,000 a year as a bus driver, pays $600 a year in union dues and contributes $2,400 to an employer pension. The other parent stays home to care for their two young children (ages one and three).
  
  
• This family is already paying $890 less Ontario personal income tax—a saving of 34 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this family a further $830 in Ontario personal income tax, an additional 48 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $1,720, or 65 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $50 to this family on its three-bedroom home in Thunder Bay, assessed at $120,000.

Example 3

• Both individuals are retired and one is disabled. They each receive $5,200 in Old Age Security and $5,400 in Canada Pension. One individual has a company pension of $15,000 a year and the other $9,000 a year. They each report interest income of $1,400.
  
  
• This couple is already paying $750 less Ontario personal income tax—a saving of 34 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this couple a further $615 in Ontario personal income tax, an additional 43 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $1,365, or 63 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $40 to this couple on their two-bedroom home in Sudbury, assessed at $94,000.

Example 4

• One parent earns $50,000 a year as a computer programmer. The other parent, stays home to care for their two young children (ages eight and eleven), one of whom has a severe disability.
  
  
• This family is already paying $1,265 less Ontario personal income tax—a saving of 33 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this family a further $1,205 in Ontario personal income tax, an additional 46 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $2,470, or 63 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $60 to this family on its two-bedroom home in Oshawa, assessed at $143,000.

Example 5

• One parent earns $35,000 a year as a computer operator. The other parent is an office worker, making $25,000 a year. No child care costs are incurred for their two school-aged children (ages twelve and fifteen).
  
  
• This family is already paying $1,475 less Ontario personal income tax—a saving of 32 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this family a further $870 in Ontario personal income tax, an additional 28 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $2,345, or 51 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $100 to this family on its three-bedroom home in Mississauga, assessed at $236,000.

Example 6

• A single doctor, with no dependants, earns $145,000 a year and contributes $13,500 to an RRSP.
  
  
• This individual is already paying $4,570 less Ontario personal income tax—a saving of 21 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this individual a further $2,375 in Ontario personal income tax, an additional 14 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $6,945, or 31 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $110 on this individual's three-bedroom home in Ottawa, assessed at $266,000.

Example 7

• A professor earns $82,000 a year, contributes $4,500 annually to the university pension and has realized capital gains of $5,000 through various investments. A teacher earns $58,300, pays $750 in union dues and contributes $4,550 a year to the teachers' pension fund. They have one child (twenty years old) who attends the University of Waterloo. The child earns $12,000 a year from co-op employment and part-time work and pays tuition and other fees of $5,360.
  
  
• This family is already paying $4,600 less Ontario personal income tax—a saving of 28 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this family a further $3,060 in Ontario personal income tax, an additional 25 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $7,660, or 46 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $100 to this family on its three-bedroom home in London, assessed at $239,000.

Example 8

• A self-employed lawyer makes $100,000 a year and contributes $13,500 to an RRSP. An engineer at a large telecommunications company earns $80,000 a year and contributes $2,000 to an RRSP. They each report interest income of $500. Their two young children (ages two and four) are cared for in their home by a nanny, at a cost of $18,000 a year, of which $14,000 is deductible for tax purposes.
  
  
• This family is already paying $5,280 less Ontario personal income tax—a saving of 26 per cent—as a result of Ontario's original personal income tax cuts.
  
  
• Full implementation of the tax cuts proposed in the 2001 Budget, combined with those announced in 1999 and 2000, would save this family a further $3,370 in Ontario personal income tax, an additional 23 per cent tax cut.
  
  
• Ontario tax cuts to date, together with full implementation of the additional measures proposed in the 2001 Budget, would deliver total income tax savings of $8,650, or 43 per cent of the Ontario income tax that would have been payable without this government's tax cuts.
  
  
• Ontario's residential education tax cut provides an additional tax saving of $195 to this family on its four-bedroom home in Toronto, assessed at $475,000.

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For more information visit www.fin.gov.on.ca