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9 in 10 workers to see income tax cuts

More than nine in 10 Ontario workers will see an income tax cut and anew property tax credit will give money back to low- and middle-incomehomeowners

More than nine in 10 Ontario workers will see an income tax cut and a new property tax credit will give money back to low- and middle-income homeowners under a range of measures the opposition decried as nothing more than a tax shift.

As part of tax measures Finance Minister Dwight Duncan introduced in his budget Thursday, the personal income tax rate would drop from 6.05 per cent to 5.05 on the first $36,848 earned.

A single person making $20,000 and paying $602 in income tax would instead pay $503. A single person making $50,000 would pay $251 less, while a single person making $100,000 would pay $236 less.

A double-income couple with no children making a combined $75,000 would pay $513 less in income tax and a double-income couple with two children making $75,000 would pay $769 less. All taxpayers earning less than $80,000 would see an average 10 per cent cut factoring in all the new tax measures, said Duncan.

The budget includes a tax harmonization, which proposes a 13 per cent sales tax in Ontario. It's expected the cost of goods will rise.

Future payouts
To soften the blow, the province plans $4 billion in cash payments in June 2010, December 2010 and June 2011 that would total $1,000 for most families and $300 for people who earn less than $80,000 a year.

 
 
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