FREDERICTON, NB: The Canadian Taxpayers Federation (CTF) is calling today’s New Brunswick budget a slap in the face of working families. The Federation had hoped that if the finance minister wanted to increase taxes that he would have had the courage to put the question to a referendum.
“For all those taxpayers who work hard, and play by the rules this budget is a slap in the face,” said Kevin Lacey, Atlantic Director for the CTF. “Before increasing taxes the government should have had the courage to go to the people and hold a referendum.”
The CTF points out that the marginal tax rate increased by 22 per cent (14.82% compared to 12.10% today) in the middle-income bracket of $38,190 to $77,908.
“These are huge tax increases that could potentially costs families over a thousand dollars when these changes kick in on July 1st,” added Lacey.
The government has claimed that it will find hundreds of millions in costs savings, however since 2009-10, total spending will be up over $600 million or about 7.6 per cent by 2014.
“Spending increases since 2009-10 means that government will have spent these tax increases three times over,” added Lacey. “While there is some promising talk about rationalizing health and the public service costs, the government saying ‘trust us’ isn’t going to hold water.”
The CTF is pleased that the government is finally selling the wasteful taxpayer funded government ‘gravy’ plane. This is a move the CTF has long called on the government to do.
Lastly, the CTF is warning that hikes to the tobacco tax could result an increase in smuggling, which could actually means there could be less revenue that the government expects due to the province’s proximity to the United States.
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