Quebec’s Liberal minority government yesterday tabled a budget with nearly $1 billion in income tax cuts despite opposition threats to vote against such measures.

The $950 million in tax cuts, mostly benefiting middle-class workers, were outlined in yesterday’s budget tabled by Finance Minister Monique Jérôme-Forget in Quebec City.

The Liberals plan to fund the tax cuts by drawing on federal transfer payments.

Jérôme-Forget said the $53.8-billion budget includes some measures that echo accountability and spending controls demanded by the opposition.

The proposed changes to provincial income tax brackets include:

  • a16% tax that will apply to incomes under $37,500 (currently for incomes under $29,290);
  • a 20% tax for incomes of $37,500 to $75,000 (currently for $29,290 to $58,595);
  • a 24% tax for incomes above $75,000 (currently for those above $58,595); and
  • the basic tax credit will be raised to $10,215, from $9,745.

Other budget highlights include:

  • $23.8 billion for health care (a six% increase);
  • fast-track measures to eliminate the capital tax for businesses by 2011;
  • $30 billion to repair and do maintenance on hospitals, schools and roads;
  • $13.4 billion for education, including money to hire special needs educators (five% increase); and
  • $200 million payment into a debt reduction fund.

The Liberals need either the Action Démocratique du Québec or the Parti Québécois to back the budget in order to preserve their government. That’s because the March election left them with only 48 seats in the 125-seat national assembly, compared to 41 for the ADQ and 36 for the PQ.