The 2000 Federal Budget of February 28, 2000 brings in some very good news and changes affecting most taxpayers across the board. In addition to tax rate reductions, it also increases income brackets for different tax rates. Some of the major changes relating to individuals are summarized below:

Full Protection Against Inflation in the Tax System – The budget restores full indexation of the personal income tax system to protect taxpayers against inflation. Non-Refundable Tax credit for tax year 2000 are:

• Basic Personal Amount (Line 300) $ 7,231

• Age Amount (Line 301) 3,531 Transferable to spouse

• Spousal Amount (Line 303) 6,140 Same for Equivalent-to-spouse amount (Line 305)

• Disability Amount (Line 316) 4,293 Supplement available $2,941 reduced by child care claimed

• Interest re Student Loan (Line 319) Actual $ paid

Benefits to individuals in terms of income are:

• Scholarship, bursary and study grants - $3,000 is exempt from tax

• Taxable Capital Gains Reduced from 75% to 66.6% effective Feb 28/2000 and

• Further reduced to 50% after Mini Budget of Oct 17, 2000

Other improvements in deductible items are:

• Child Care Expenses (Line 214) Claim for a disabled child increased to $10,000 for under 7 years old.

• Attendant Care Expense (Line 215) Claim expenses for care that allows you to go to school.