
Job creation and taxpayers: Two good reasons to lower taxes


Last week, a special committee of the Legislative Assembly concluded a series of consultations on the Liberal green paper on tax reform.
Beginning last month, the bi-partisan committee held 10 meetings throughout the province asking New Brunswickers for their feedback with respect to the proposed changes.
Many concerns were addressed, but I will not prejudge the conclusion of the report. However, I will take this opportunity to share with you what was heard during the meetings.
No breaks for small businesses
Small businesses represent a large component of our economy. The measures included in the Liberals' green paper provide no break for small business and entrepreneurs. In fact, last year the Liberal government slapped them with a 500 per cent income tax increase. That's why providing a lower tax rate for small businesses is a fair approach to help foster entrepreneurship.
However, the paper does propose major income tax cuts for large corporations and banks.
Unpopular new carbon tax
The new carbon tax proposed by the Graham Liberals received the strongest opposition. This idea would lead to higher prices for gas, oil, food and transportation, while netting $100 million in government revenue.
One industry in the province that was strongly opposed to this new tax was the transportation industry.
Because of the cost of fuel compounded with the carbon tax, it will undoubtedly translate into job losses and hardship for communities.
Other industries will also be affected by this tax such as the food service industry and the energy intensive forestry, fishery and agriculture industries.
There is one conclusion I can draw on the carbon tax. It is a new, catchy, Liberal way of levying a new tax to pay for government and has nothing to do with the environment.
No relief for low and middle income families
The government's proposed tax reforms entail a large tax shift. The present multi-bracket income tax structure would be replaced by a one or two-bracket structure. It means that high earners with income over $113,000 would see their marginal provincial tax rate drop from 17.95 per cent to a possible 10 per cent. Meanwhile, low and middle income families wouldn't enjoy any improvement to their disposable income. Any gain made by this group would quickly be cancelled by the proposed 25 per cent increase to the provincial component of the HST.
Before dipping into people's pockets, the government should be looking to find savings and efficiencies from within first. Tax reforms cannot be done on the back of low income people who are trying to enter the workforce and make a decent living.
Unfair property taxes
Currently, property taxes are the only way for municipalities to collect taxes directly. This presents issues in terms of fairness.
Residential apartment owners who pay local property taxes are not exempt from provincial property taxes. This extra tax burden translates into higher rental costs for tenants. Presenters, including apartment owners and tenants, said that the province needs to find a solution quickly. The solution should benefit tenants.
No support for job creation
Last week, Statistics Canada released its labour force survey for June showing a 9.7 per cent unemployment rate - a 40 per cent increase in only one year.
This indicates that for every 10 New Brunswickers available for work or working, approximately one person was still looking for a job.
As you can see, there are many concerns and issues with respect to taxes here.
New Brunswickers cannot afford another tax increase. There is one more reason to lower taxes and provide a competitive business environment: jobs.
When the Graham government chose in 2007 to be the only province in Canada to increase taxes, the Progressive Conservative Party was strongly opposed. We were concerned that the increased taxes for families and businesses would kill jobs, eliminate our competitive business climate and slow our economy.
Today, the unemployment rate is up and New Brunswickers haven't seen a single tax break, but they understand the need for lower, competitive taxes. I hope Shawn Graham will.
Jeannot Volpé is the Leader of Official Opposition and Progressive Conservative MLA for Madawaska-les-Lacs. He held several cabinet portfolios in the Lord Government, including Minister of Finance and Minister of Natural Resources and Energy.








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A business relys on a good stable society so they can plan and grow their company based on market conditions. If the level of service ie: healthcare, education, public safety etc etc is kept to a high standard then companies benefit by this through hiring educated people, good roads, clean water, free healthcare, good police protection and on and on.
Try running a business in a place were they didn't offer these services. And don't look to the US because as soon as the election is over their taxes are going through the roof (their bankrupt).
Mr Volpe I am a business owner and I don't mind paying 5% because I don't see this Government wasting it like yours did!