This surplus must be allocated to new social spending. The statement accelerates tax changes announced in the 2000 Budget, moving most measures forward to January 2001. Interestingly, the Finance minister has effectively introduced a new top tax rate within a 4-bracket system. This makes the system somewhat more progressive. As Above, Plus Surtax Saving Taxpayers in higher brackets get all savings from changes in lower brackets.
Income is gross pre tax.
Savings reflect tax structure changes only, not reindexing impacts. Impact of larger child benefits not included. Capital gains changes not included. This does little for the working poor compared to the alternative of raising the amount of income which can be earned free of tax. The 2000 Budget restored full indexation of all credits and tax thresholds to inflation, which preserves the full value of the GST credit, the CCTB and the basic tax exemption.