Canada Day spells tax break
Published Tuesday June 30th, 2009
More loonies | Tories contend the tax rate goes back to 2006 levels
Starting on Canada Day, New Brunswickers will save between $7.77 and $25.46 off their bi-weekly paycheques thanks to the Liberal government's income tax cuts.
The total savings for New Brunswickers this year will be $124 million.
But critics say the government is just moving the tax rate back to what it was before it came to power in 2006.
"We are very pleased that New Brunswick taxpayers will be getting more money to save, invest and spend as they choose," said Premier Shawn Graham in a speech in Moncton on Monday.
"Not only will this provide economic stimulus benefits in the short term, but it will position New Brunswick as the place to be for job creation, and a place where your income goes further than in many other jurisdictions," he said.
The tax reduction plan was announced earlier this year in the 2009-10 budget.
The government estimates the smallest tax savings are for a single individual making $25,000 per year.
He or she will pocket $202 in tax savings in 2009, which works out to $7.77 on every bi-weekly paycheque on an annual basis.
The biggest savings are for a couple each making $50,000 per year who will save $662 by Christmas. That works out to $25.46 off their combined bi-weekly paycheque.
But Opposition Finance critic Bruce Fitch isn't impressed.
"I wish they (the government) would stop misleading the people," he said Monday. "If they had said we are putting the taxes back where they were two years ago - and we shouldn't have raised them - I would have no problem with it."
Fitch said people are no further ahead and the public is already cynical enough about the way government packages information and communicates with residents of New Brunswick.
In addition, there are increased fees and property taxes through higher assessments, said Fitch.
The Liberals are collecting an extra $45 million this year in property taxes alone, said Fitch.
He also wondered if this was a public relations stunt related to a possible fall election.
Acting Finance Minister Jack Keir said such criticism is nonsense.
This year's tax reduction of $124 million alone is more than the tax increase in 2006, he said.
"It is much, much more than that," said Keir. "There will be $380 million a year by 2012 in the pocket of New Brunswickers."
When asked how he would like to see New Brunswickers spend their tax savings, Keir said that was up to them.
He said he would like to see people stimulate the economy, but tax cuts are about more than spending the savings or putting it in the bank.
It's about New Brunswick's reputation for being a good place to live and do business, he said.
"By the end of 2012, we are going to have the second most cost-effective tax system in the country behind Alberta," said Keir.
That will be a huge sales pitch for the province, he said.
Any tax cut is good news, said Kevin Gaudet, federal director of the Canadian Taxpayers Federation.
"New Brunswick is one of the few Canadian provinces moving in
the right direction," he said Monday.
"They deserve credit where it's due."
The government's contention that tax breaks can help attract, retain and repatriate professionals and skilled workers makes sense, said Gaudet.
"Absolutely," he said.
"When businesses have lower taxes, they are able to create and maintain jobs, and if personal taxes are lower, then those people are more likely to come and they can afford to stay (in New Brunswick)."
The government is also promising to reduce the corporate tax rate to eight per cent from 13 per cent by July 1, 2012.
With files by Daily Gleaner reporter Shawn Berry
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We put this tax cut on the credit card, and it will be young New Brunswickers who will see their services cut in the coming years to pay for it.
Didn't the credit crunch teach us anything? If you can't afford it, don't buy it. This goes for houses as well as taxes.
"...This year's tax reduction of $124 million alone is more than the tax increase in 2006, he said.
"It is much, much more than that," said Keir...."
Since when is $124 Million "much much more" than $250 Million? Which is what the Liberals raised the incomes taxes for when they got into power, to make up for the supposedly $250 Million deficit that Lord left, that actually never materialized (2006 was a fiscal surplus year, not deficit).
In fact, it appears to be roughly HALF of what they raised it by in 2006. Nice job, Keir, you're off to a good start at sealing that coffin for Graham next year.
This government has to go!
Too bad poor people don't pay much tax so only the rich will see savings.
DC
1.increased fees for just about everything at Service New Brunswick.
2.if you drink alcohol, you are paying more and will pay more again in the future.
3. the cost of re-paying defaulted loans to risky companies.
4. property tax
If there is anything left of the tax savings it will not be much!