CTV's Chris Olsen crunched the numbers in British Columbia Premier Gordon Campbell's economic plan to see how it will affect individuals and small busineses. What follows is an analysis that appeared on CTV News at Six, October 23.

Olsen said the premier's announcement of a five per cent tax cut that will be in place for this year - retroactive to January 1, 2008 -- means more money in the pocket of anyone who pays taxes.

For a single person earning $20,000, it's another $17

For a single earning $60,000, it's another $111

For a family of four earning $40,000 it'll be another $34

For the same family earning $90,000,its an additional $139

But remember -- it's only offsetting the carbon tax.

So while your pay cheque goes up, you may not actually be richer.

SMALL BUSINESS

Small businesses represent 98 per cent of the business base of B.C.and provide one million jobs.

If you want the economy to keep going, they need to do well.

So the government is cutting the small business tax rate on December 1st, two years ahead of schedule.

"Tax relief is top priority for small business so that's great news," said Laura Jones, vice-president, Canadian Federation of Independent Business.

And the government will pay higher commissions to businesses collecting the provincial sales tax and hotel room tax

"That will add up to $1,200 to a businesses annual bottom line" said Campbell

And what may be the most significant announcement doesn't give any relief now, but looks towards the future.

GROUP PENSION PLAN

It's a voluntary group pension plan for the 75 per cent of the private sector work force that doesn't have one, including the self employed.

"By pooling contributions and managing them under a single plan, we will maximize investment earnings, lower administration costs, reduce risk and give people new worry-free access to guaranteed pension entitlements," said Campbell.

There are still lots of questions about how the plan is going to be set up.

Will it be flexible like an RRSP or locked in like the Canada Pension plan?

And most important -- who's managing the fund?

"You have to make sure you have really good people managing the funds," said Diane McCurdy, a financial advisor.

"You know, governments in the past have not been good at doing that," she said.

Another significant change to deal with the fear many are feeling as a result of the meltdown in financial markets and the impact on people's retirement savings.

As a result, the government will now fully insure all deposits at B.C. credit unions -- ending the $100,000 limit. It means the money in your local credit union is safe.

Question: When will B.C. residents see the money from the tax cut?

Answer: It's actually up to your employer.

Once the rates are approved, employers can make the change right away giving you a nice Christmas bonus -- so you don't have to wait until spring for a refund. Retailers would probably like that too, in time for the holiday shopping season.

With a report by CTV British Columbia's Chris Olsen.