Liberals identify $63 million in new revenue
FREDERICTON – A Liberal government would rescind a tax break given by the Alward government to big businesses and increase taxes on the richest one per cent of New Brunswickers, Liberal Leader Brian Gallant announced today. These two measures would increase provincial revenues by $63 million. Gallant said he would announce other measures the Liberals would take to balance the budget in the coming days and weeks.
”Job creation will be the number one priority of a Liberal government,” Gallant said. “That said, we must get our fiscal house in order if we are to strategically invest to create jobs and make life more affordable for New Brunswickers.”
Gallant said that a Liberal government would return business property tax rates to the levels in place in 2012. This would result in a restoration of $34.3 million in lost revenue.
”It makes no sense to give a big tax break to multinational corporations like Costco and Wal-Mart when our province faces a $500 million deficit,” said Gallant. “As for our homegrown big businesses, even the New Brunswick Business Council said they were surprised by this tax cut, that they hadn’t asked for it, and that they didn’t need it. Rescinding this tax break makes good fiscal sense.”
A Liberal government would also increase taxes on New Brunswickers with net incomes greater than $150,000 per year. A new tax bracket for income between $150,000 and $250,000 would have a rate of 21 per cent, the same as in Nova Scotia. Another tax bracket for incomes greater than $250,000 would have a rate of 25.75 per cent, the same as in Quebec.
The Liberals estimate this will bring in additional annual revenues of $28.7 million. New Brunswickers at all income levels would continue to pay less overall tax than Quebecers, and New Brunswickers with net incomes less than $300,000 would continue to pay less tax overall than Nova Scotians.
“We do not want to ask low-income earners and middle class New Brunswickers to give anymore,” said Gallant. “Under the Alward government, life has become less affordable for many. These tax measures strike the right balance between raising needed revenues from those who can afford to pay more, and ensuring our tax system is comparable to our neighbours.”