Premier Wall Anounces Historic Financial News For Saskatchewan

In October, Premier Brad Wall announced:

·         the largest single-year income tax reduction in Saskatchewan history;

·         the largest amount of debt reduction in Saskatchewan history; and

·         the largest investment in infrastructure in Saskatchewan history, while still maintaining a $1.9 billion cash balance in the Growth and Financial Security Fund.

Lower taxes will come in the form of increased personal exemptions - the amount of money a person can earn before starting to pay income tax.

The Basic Personal Exemption and the Spousal Exemption will each increase by $4,000 while the Child Tax Credit amount will increase by $2,000 per child. This will mean a tax saving of $440 per year for an individual, or $1,320 per year for a working family with two children.

“A working family with two children can now earn up to $41,300 before they start to pay any provincial income tax,” Wall said. “That’s the highest level of any province and it’s one more reason Saskatchewan is the best place in Canada to earn a living and build a life.

“A total of 80,000 low-income taxpayers will drop off the tax rolls altogether. And those who pay no taxes now will benefit from a new Low-Income Tax Credit, which replaces and significantly increases the Saskatchewan Sales Tax Credit.”

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Huge Boost For Low-Income Seniors

The Saskatchewan government more than doubled the Seniors Income Plan (SIP) benefit (formerly known as the Saskatchewan Income Plan), from $90 to $190 per month for single seniors, and from $72.50 to $155 each per month for couples. This is the first increase in the SIP benefit since 1992.

Prior to this change, $14,993.64 was the maximum income for a single senior to be eligible to receive benefits; the new maximum is $16,313.64. For a couple, the previous maximum income was $24,356.64; the new maximum is $26,468.64. As a result of this new $19.5 million investment, the number of Saskatchewan seniors eligible for SIP will double from approximately 10,000 to about 20,000.

Health Minister Don McMorris said that in addition to the financial benefits, seniors eligible for SIP will continue to receive the following health care services:

• one free eye examination per year;
• free chiropractic services;
• reduced deductible on prescription drugs;
• home care subsidy;
• loan of some low-cost devices through Saskatchewan Abilities Council;
• supplementary health benefits for SIP recipients living in special care homes.

These changes take effect January 1, 2009

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