FRANCAIS

April 10, 2001

Manitobans will receive a 10.5 per cent cut in personal income taxes by 2003 as a result of new and ongoing personal income tax reductions, Finance Minister Greg Selinger announced today.

The 10.5 per cent cut in personal income taxes will save Manitoba families $165 million annually by 2003. The 10.5 per cent cut is a result of new personal income tax cuts in Budget 2001 that build on reductions first introduced last year, Selinger said.

"We are taking steps to keep Manitoba's taxes affordable and fair," Selinger said. "Reductions announced today, combined with tax relief in our 2000 budget, mean Manitobans will receive a 10.5 per cent reduction in personal income taxes by 2003. This is meaningful tax relief. This is progress for Manitobans and their families."

New tax reductions announced in Budget 2001:

• increase the non-refundable tax credit amounts by 2.5 per cent over 2000--a benefit for all personal income taxpayers;
• reduce the middle income bracket tax rate to 15.4 per cent in 2002 and 14.9 per cent for 2003--a reduction from 16.2 per cent in 2001;
• reduce the top income tax bracket rate to 17.4 per cent for 2001; and,
• remove 4,000 lower income Manitobans from the tax rolls.

Selinger noted that today's announcements reduce taxes by a further $29 million this year, increasing to $54 million annually by 2003. These cuts build on the $111 million annually in new personal income tax reductions introduced last year--$68 million in 2001, a further $34 million in 2002 and $9 million in matching federal reductions.

By 2003, Manitobans will receive $165 million in annual personal income tax savings from the provincial government, amounting to a 10.5 per cent decrease in personal income taxes.

Selinger noted that this 10.5 per cent reduction in personal income taxes is on top of the $40 million in cuts first announced by the former government in 1999 and implemented by the current government in 2000.

Selinger said the $165 million in annual personal income tax savings climbs to $218 million in personal tax savings by 2003 when increases to the Education Property Tax Credit are factored into the total.

Budget 2001 delivers the province's second consecutive $75 increase in the Education Property Tax Credit--raising the minimum tax credit to $400 from $250 in just two years. The back-to-back adjustments return $53 million annually to Manitoba homeowners and renters.

"Delivering on one of our key election promises provides meaningful tax relief to Manitobans," Selinger said. "This past year, Manitobans experienced the strongest per capita disposable income increase since 1990 and we believe Manitobans will further benefit from new initiatives announced today."

Selinger noted that his first two budgets deliver the $150 in education property tax relief in the time frame promised during the 1999 election. He said the province is now turning to part three of its election promise--to work with local governments and school boards to make other improvements in education property taxation.

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• House Valued At $80,000

• House valued at $80,000