2008 British Columbia Budget Impact Paper

This paper was prepared by the Compensation Sector, Accounting, Banking and Compensation Branch, Public Works and Government Services Canada (PWGSC). It should be noted that this document is not all encompassing. Employees may find this document informative from a personal perspective.

The following item, which is relative to the compensation product, was introduced in the British Columbia budget speech that was presented by the Honourable Carole Taylor, Minister of Finance for the Government of British Columbia on February 19, 2008.


ITEM AFFECTING PWGSC COMPENSATION SYSTEMS

Personal Income Tax Rate

The Government of British Columbia has advised that it will lower the personal income tax rates for the two lowest tax brackets beginning in 2008. The following table shows British Columbia's personal income tax brackets and corresponding rates before and after the changes for 2008 and 2009.

British Columbia Tax Brackets and Rates
Tax Brackets ($)	Current Tax Rates	2008 Tax Rate Changes	2009 Tax Rate Changes
More than - Not more than
$0 to $35,016	5.35%	5.24%	5.06%
$35,016 to $70,033	8.15%	7.98%	7.70%
$70,033 to $80,406	10.50%	10.50%	10.50%
$80,406 to $97,636	12.29%	12.29%	12.29%
Over $97,636	14.70%	14.70%	14.70%

Impact: PWGSC compensation systems will be programmed to reflect the changes for 2008 in July 2008. It is expected that the Canada Revenue Agency will provide employers with the adjusted tax rate, which will take into consideration the first six months of 2008, by June 2008.


To review the 2008 British Columbia budget documents, please visit this site:

http://www.bcbudget.gov.bc.ca/2008/default.htm