FREDERICTON, NB: The Canadian Taxpayers Federation (CTF) says the 2011-12 New Brunswick budget today falls short of making the necessary budget cuts and puts more of the burden on to regular taxpayers to lower the deficit.
While the CTF was pleased the HST did not get hiked, gasoline and income taxes are on the rise. The 2.9-cent per litre (3.3-cent if you include the HST) increase means the average driver will spend about $85 more in tax on gasoline.
“In reality, it’s a 3.3-cent per litre increase, thanks to the HST being charged on top of other taxes,” said Kevin Lacey, Atlantic Director of the Canadian Taxpayers Federation. “While it may only sound like a few pennies, drivers who fill up their car once a week will pay an extra $85 a year just to drive their kids to school and themselves to work.”
“Despite pressure from business organization and special interests ,David Alward did the right thing and supported the CTF’s call not to increase the provincial HST,” continued Lacey.
The CTF supported the previous government’s move to simplify the tax code and reduce the personal income tax burden. This budget will roll those back and once again make the tax code more complicated.
Despite claims of cuts, the budget will see spending growth over last year’s budget. And the government continues to reap increases in revenues from taxpayers. Government revenues went up from 2009-10 to 2010-11 by 7.1 per cent and with the various tax hikes, revenues are expected to rise another 2.1 per cent in 2011-2012.
"The budget fails to deliver on the promise of a balanced approach. The cuts in spending are simply cuts to the extra spending that occurred over-and-above last year’s budget,” continued Lacey.
The CTF was however pleased to see civil service cuts. In particular, eliminating the number of vacant positions and reducing the number of Deputy Ministers.
“This shows the government’s commitment to cap the growth of the number of public servants. This will help the government save money and reduce the size of government,” concluded Lacey.
For more information, contact Kevin Lacey at (902) 209-1115 (cell). Kevin can also be reached via e-mail at [email protected].
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