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

TORONTO - Finance Minister Jim Flaherty today proposed more personal income tax cuts in the 2001 Budget to complete the promised 20 per cent personal income tax cut commitment made to the people of Ontario.

"Mr. Speaker, I am pleased to announce today another promise kept to the taxpayers of Ontario," Flaherty said. "We propose to complete our 20 per cent personal income tax cut promised in 1999. Ninety-five per cent of taxpayers - virtually everyone earning less than $100,000 a year - would see a cut of at least 20 per cent."

The tax cuts proposed in this Budget would bring to 735,000 the number of low-income earners who would no longer pay taxes to the Ontario government, but would continue paying taxes to the federal government.

The Province is also proposing to take the first step toward eliminating the personal income surtax, removing this burden for more than 340,000 people.

"We are proud of the steps we have taken over the years to return money to people with lower incomes," Flaherty said. "It is time now to look more closely at how much tax middle-class families in Ontario pay."

The surtax "hits Ontario taxpayers with incomes that start at $54,000," Flaherty said. "People at this income level are by no means rich. This tax is an unnecessary burden on thousands of middleclass families."

With the personal income tax cuts proposed in today's Budget, the Ontario government would fully deliver the 20 per cent reduction it promised in the Blueprint, returning more than $4 billion in additional tax savings to Ontario taxpayers.

"Our tax cuts since 1995 mean that a family of four - two working parents and two children - with an income of $60,000 would pay $2,345 less in Ontario personal income tax," Flaherty said. "That is money to spend on a new computer, almost four months of groceries or a year's tuition at a community college -- money to spend as they choose."

For details, see Backgrounder, Province Delivers 20 Per Cent Personal Income Tax Cut

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