April 9, 2008
Budget 2008 Continues To Cut Property, Personal Income And Business Taxes
– – –Manitobans to Save $1 Billion in Taxes by 2009: Selinger
Manitobans will benefit from a range of tax savings that include an increase to $600 in the Education Property Tax Credit, a new tax credit for caregivers, a plan to drop the small business rate to
one per cent and a new measure to help manufacturers dealing with the impact of the high Canadian dollar, Finance Minister Greg Selinger announced today.
one per cent and a new measure to help manufacturers dealing with the impact of the high Canadian dollar, Finance Minister Greg Selinger announced today.
The new tax reductions announced in Budget 2008 will save Manitoba families, individuals and businesses $182 million annually. When combined with tax cuts announced since 1999, Manitobans are on track to save more than $1 billion in taxes annually by 2009.
“Like our previous eight budgets, Budget 2008 reduces taxes in a strategic, affordable way,” Selinger said. “We have kept and exceeded our promises to cut property, personal and business taxes, and have done this by following through on multi-year plans that have reduced taxes across the board.”
The minister said Budget 2008 contains new personal income and property tax savings including:
· introducing a new Primary Caregiver Tax Credit of up to $1,020 a year in 2009;
· increasing the Education Property Tax Credit to $600 in 2008, saving Manitobans an additional $24.5 million annually;
· increasing the Farmland School Tax Rebate to 70 per cent in 2008, up from 65 per cent in 2007, returning over $30 million to farmers this year;
· reducing personal income tax for every taxpayer by increasing the basic personal exemption by $100;
· lowering personal income tax for families by adding $100 to the spousal and dependent amounts in 2009; and
· providing benefits to Manitobans by increasing the Personal Tax Credit in 2009.
Budget 2008 also confirms that Manitoba will move forward with a multi-year plan to cut personal income taxes. In 2009, the lowest bracket tax rate will fall to 10.8 per cent. The middle income threshold will rise to $31,000 and the top bracket threshold will rise to $67,000.
Today’s budget also continues to cut business taxes by:
· dropping the small business rate to one per cent in 2009, down from two per cent in 2007 and eight per cent in 1999; and
· reducing the general Corporation Income Tax rate to 12 per cent in July 2009, with a goal of moving to 11 per cent in future years.
Budget 2008 confirms the phase out of the general Corporation Capital Tax by 2011, Selinger said. In addition to this, the budget supports manufacturers by:
· eliminating the Corporation Capital Tax for manufacturers and processors on July 1, 2008, thereby freeing up $25 million annually; and
· extending the Manufacturing Investment Tax Credit to the end of 2011, building on the previously announced increase of the refundable portion of the credit to 70 per cent.
Selinger said Budget 2008 also introduces new measures to help grow emerging industries including:
· introducing a new Interactive Digital Media Tax Credit that will provide a refundable tax credit equal to 40 per cent of eligible Manitoba labour costs;
· introducing a new Book Publishing Tax Credit that will provide a refundable income tax credit equal to 40 per cent of eligible Manitoba labour costs, plus an additional 10 per cent for books printed on forest-friendly paper; and
· enhancing the successful Film and Video Tax Credit by introducing a five per cent bonus for films with a Manitoba producer, doubling the frequent filming bonus to 10 per cent and enhancing provisions for skills transfer.
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