First

Session, 48th General Assembly

Elizabeth II, 2016

BILL 13

AN ACT TO AMEND THE

INCOME TAX ACT, 2000

Received and Read the First Time .................................................................................................

Second Reading .................................................................................................................................

Committee ..........................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

CATHY BENNETT

Minister of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Income Tax Act, 2000 to increase the

rate of personal income tax payable for all income ranges.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.7 Amdt.

Amount of tax payable

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1

as amended

1. (1) Subsection 7(1) of the Income Tax Act, 2000 is amended by

deleting the words and comma "and subsequent taxation years, is" and

substituting the word and comma "taxation year, is".

(2) Subsection 7(2) of the Act is repealed and the

following substituted:

(2) The tax payable under this Part for a taxation

year by an individual on the individual's taxable income or taxable income

earned in Canada, in sections 6 to 33 referred to as the "taxable

income" for the 2016 taxation year

(a) 8.2% of the taxable income if the taxable

income does not exceed $35,148;

(b) $2,882 plus 13.5% of the amount by which the

taxable income exceeds $35,148 and does not exceed $70,295;

(c) $7,627 plus 14.55% of the amount by which the

taxable income exceeds $70,295 and does not exceed $125,500;

(d) $15,659 plus 15.8% of the amount by which the

taxable income exceeds $125,500 and does not exceed $175,700; and

(e) $23,591 plus 16.8% of the amount by which the

taxable income exceeds $175,700.

(3) The tax payable under this Part for a taxation

year by an individual on the individual's taxable income or taxable income

earned in Canada ,

in sections 6 to 33 referred to as the "taxable income" for the 2017

taxation year and subsequent taxation years is

(

a) if the taxable income does not exceed $35,148,

8.7% of the taxable income;

(

b) if the taxable income exceeds $35,148 and does

not exceed $70,295,

(

i) the highest amount that might be determined

for an individual under paragraph (

a) of this subsection,

plus

(ii) 14.5% of the taxable income that exceeds

$35,148 and does not exceed $70,295;

(

c) if the taxable income exceeds $70,295 and does

not exceed $125,500,

(

i) the highest amount that might be determined

for an individual under paragraph (

b) of this subsection,

plus

(ii) 15.8% of the taxable income that exceeds

$70,295 and does not exceed $125,500;

(

d) if the taxable income exceeds $125,500 and

does not exceed $175,700,

(

i) the highest amount that might be determined

for an individual under paragraph (

c) of this subsection,

plus

(ii) 17.3% of the taxable income that exceeds

$125,500 and does not exceed $175,700; and

(

e) if the taxable income exceeds $175,700,

(

i) the highest amount that might be determined

for an individual under paragraph (

d) of this subsection,

plus

(ii) 18.3% of the taxable income that exceeds

$175,700.

Queen's Printer