CALCULATE YOUR INCOME TAX SAVINGS

Released on June 29, 2000

A new link from the Government of Saskatchewan web site will help Saskatchewan

taxpayers estimate their income tax savings for the 2000 taxation year. The

information can be accessed at www.gov.sk.ca, and click on Tax Cuts.



Finance Minister Eric Cline said the new link gives people a simple way of

seeing what the first stage of income tax reform will mean for them.



"It displays the income tax savings in the year 2000 for a range of different

families and individuals along with a range of different income levels. The

site will be updated periodically as personal income tax in Saskatchewan

continues to come down."



The flat tax is reduced from 2 per cent to 1 per cent July 1, 2000. The

saving will begin showing up on paycheques for the month of July. On January

1, 2001 the flat tax, debt reduction surtax, and high income surtax will be

abolished. The income tax savings for a typical two income ($50,000) family

will be $350 in 2000, growing to $650 in 2001.



Saskatchewan makes the transition from the current system of "tax on tax" to a

more direct system of "tax on income" in 2001. Tax rates will be cut again in

2002 and 2003 so that by 2003, the annual income tax saving for the average

Saskatchewan family will be $1,000.



Cline said the link is intended to show people what the tax cuts mean to them

in day-to-day terms. "The income tax cut in the current fiscal year is worth

$206 million, and this grows to $442 million by 2003. However, these are not

numbers that mean much to most people. The web site will allow them to

understand the impact these tax cuts will have on them and their families."



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For further information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306) 787-6578