A Saskatchewan family of four earning $50,000 a year has saved more than $8,000 over the past four years as a result of the income tax reductions introduced by the provincial government.
If taxes had remained at 2007 levels, that family would have paid $9,208 in provincial income tax over the past four years. However, income tax reductions introduced by the government starting in 2008 lowered their income taxes to $1,121 over that same period, a saving of $8,087 or 88 per cent.
"That's a significant reduction," Deputy Premier and Finance Minister Ken Krawetz said. "Putting that money back in the pockets of Saskatchewan families will go a long way toward making life more affordable."
These calculations include the enhancements made to the basic, spousal and dependent child exemptions, introduction of the Active Families Benefit and the Low Income Tax Credit, and the impact of indexation of tax brackets and personal exemption amounts.
As a result of these improvements, this Saskatchewan family now faces the second lowest overall taxes in the nation, behind only Alberta, and the gap with that province has narrowed over the past four years.
A family of four will pay no provincial income tax on their first $45,550 of earned income, the highest income threshold in Canada.
A family of four earning $75,000 will have saved a total of $7,268, or 36 per cent in income taxes over the past four years as a result of the income tax reductions introduced since 2007.
These income tax reductions have also reduced the number of Saskatchewan income tax payers by more than 110,000 in 2011.
"The Saskatchewan of today is a far more competitive and family-friendly place than it was," Krawetz said. "I think we're seeing that in the level of investment we're enjoying, the strength of the economy and the growth of our population. Our young people are coming home."
Krawetz said the government has also made important progress on reducing education property taxes and business taxes.
Over the past four years, total education property tax reductions amount to $165.7 million, or 22.2 per cent. This year's reduction in the small business income tax rate from 4.5 per cent to two per cent saves Saskatchewan business operators $80 million a year.
People buying light used vehicles in Saskatchewan have also seen their tax burden reduced since the government removed the PST on these vehicles. From 2008 to 2010, this new exemption took the PST off an estimated 242,000 used vehicles, saving Saskatchewan taxpayers $148 million.
While taxes have been coming down, so has the province's debt. Since 2007, the government has paid down more than $3 billion in debt, bringing the government general debt level to $3.8 billion, the lowest it has been since 1988.
As a result of the province's strong economy and declining debt, Standard and Poors upgraded the province's credit rating to its highest level of Triple A, the first time Saskatchewan has ever achieved the highest rating.
"Less debt, lower taxes, and more money back in Saskatchewan families' pockets - that's the Saskatchewan Advantage," Krawetz said.
