As I indicated, the Tax Collection Agreement between the Northwest Territories

and

Canada

requires

that

both

jurisdictions use the same definition of taxable income. So, a northern residents deduction increase would reduce federal and territorial personal income tax revenues. For example, in 2008 with the increase of the NRD to the maximum deduction at $6,022.50, the cost to the GNWT is about $800,000.

We are prepared, if this Assembly supports this, to make it part of the transitional process and also to write to the federal government, recognizing that they are in the middle of an election. Thank you, Mr. Speaker.