The matter of reducing personal and corporate income tax.
In 2001, the top marginal rate of personal and corporate income tax was 40 percent. Over the last near-25 years, government has reduced that level of taxation to 28 percent.
Over the next five years, this rate will be reduced further to 22 percent, in stages, beginning with a reduction to 26 percent from January 2026; in 2026, this will cost the Treasury $3.7 million in personal income tax reductions alone; the cost of the reduction for corporate taxes will be $3 million in 2026.
In 2001, the salary threshold below which no personal income tax was to be paid was $12,000; the government has raised that threshold to $25,000 annually.
Over the next five years, that threshold will be increased to at least $30,000, beginning with an increase to $26,000.
As of January 2026, there will be no personal income tax on an employee’s first $26,000 of salary, annually.
More money in workers’ pockets. This threshold tax alteration will cost $2.2 million in 2026.
All told, therefore, these personal and corporate tax reductions for 2026 will cost the Treasury $8.9 million.