The British Columbia government wants to cut income tax rates for the first $72,000 of personal income.
The proposed 15-per-cent reduction is the second-largest personal income tax relief measure in B.C. history and means B.C. residents will pay the lowest provincial income tax on incomes up to $130,000 in Canada, said Premier Gordon Campbell.
“This new tax relief will inject $568 million into our economy and create new opportunities for families and individuals across British Columbia," said Campbell.
Subject to legislative approval, the rate reduction will apply to earnings up to $72, 293 and would be effective Jan. 1, 2011.
The tax cut will save individual B.C. taxpayers up to $616 annually. As a comparison, someone earning $45,000 in Alberta would pay 64 per cent more than in B.C., a difference of $990. Someone in Quebec would pay 180 per cent more, a difference of $2,787.