First Session, 46th

General Assembly

57 Elizabeth II,

BILL 25

AN ACT TO AMEND THE INCOME TAX

ACT, 2000

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

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

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

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

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

HONOURABLE THOMAS

W. MARSHALL, Q.C .

Minister of Finance

and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Income Tax Act, 2000 to reduce the rate

of personal income tax by one percentage point in each personal tax bracket.

The amendments proposed in the Bill

would be considered to have come into force on January, 1, 2008 .

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.7 Amdt.

Amount of tax payable

Commencement

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 (1) Subsection 7(2) of the Income Tax Act, 2000 is repealed and the

following substituted:

(2) The tax payable under this Part for the 2008 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", is

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

income does not exceed $29,590;

(b) $2,426 plus 13.3% of the amount by which the

taxable income exceeds $29,590 if the taxable income exceeds $29,590 and does

not exceed $59,180; and

(c) $6,362 plus 16.0% of

the amount by which the taxable income exceeds $59,180.

(2) Section 7 of the Act is amended by adding

immediately after subsection (2) the following:

(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 2009 and subsequent taxation years, is

(a) 7.7 % of the taxable income if the taxable

income does not exceed $29,590;

(b) $2,278 plus 12.8% of the amount by which the

taxable income exceeds $29,590 if the taxable income exceeds $29,590 and does

not exceed $59,180; and

(c) $6,066 plus 15.5% of

the amount by which the taxable income exceeds $59,180.

2. This Act shall be considered to have come into

force on January 1, 2008 .

Earl G. Tucker, Queen's Printer