These days, special interest groups are working overtime; opposing any attempt by the Alward government to cut spending. Indeed, most prefer to increase taxes to ensure the pork keeps flowing their way.
Consider the finance minister’s recent pre-budget consultations: Canadian Union of Public Employees (CUPE) opposed moves to trim the budget instead insisting the government move towards a “progressive” tax system (read: shell out more in taxes to support public employees); artists groups waved bogus economic reports to make the case for more money; the pay equity coalition wanted to change the way taxes worked so as to make them more “fair” (read: shell out more in taxes); the Acadian Association of Senior Francophones urged the government not to cut spending (bad for the economy they say); Enterprise Greater Moncton wanted a tax increase on cars and houses while Future NB conference co-chair David Ganong urged the province to increase the HST.
For these special interest groups it doesn’t matter how much money the government spends or taxes, it’s never ever going to be enough.
Since 2006-07, the previous government increased government spending by an unprecedented $1.7B. That’s an increase of over 20 per cent; spending increases at this level are both reckless and unsustainable.
Despite spending all that money, it has not quelled the desire of some to spend even more. If boosting spending by $1.7B in the last four years couldn’t stop the cries for more money, how much is it going to take?
Not only did spending increase, but so too did the size of government. The public service commission confirmed that 3600 new bureaucrats were hired over the last four years.
Bloated government and massive increases in spending are the real reason New Brunswick is in this fiscal mess it finds itself. The province is currently overspending $2.3 million – wait for it – a day! Hands up everyone who thinks we should increase that amount.
The truth is, the province has a spending problem; not a revenue problem.
Instead of spending, why not shed enterprises the government has no business in, reduce the number of bureaucrats and reduce taxes to grow the economy. This is how we will solve this fiscal mess.
New Brunswickers have heard more than enough from special interests groups – how about a word now from the men and woman who pay taxes in the province? They were consulted on Sept. 27th when David Alward was elected premier. During that campaign Mr. Alward said tax increases would be a last resort to balance the books, not the first. Fortunately, an HST increase is off the table. But New Brunswick taxpayers will see a new tax bracket paid on income and businesses will pay more tax.
The government should run the province the same way taxpayers run their households -- don’t give into every demand to spend money and only spend what you are making. These are values Premier Alward surely lives by. He should similarly be governed by them.
Kevin Lacey is the Atlantic Director for the Canadian Taxpayers Federation, you can find more information at taxpayer.com
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey