Yes, you heard that right. Traditionally uncompetitive, have-not New Brunswick is leading the way in 2009 and 2010 on both lowering income taxes and, wait for it...flattening them. Not a full flat tax mind you, but a dual rate, which would make its marginal rates second only to Alberta. New Brunswickers will see by far the most tax relief of any Canadians in 2010. For example:

o A single individual making $60,000 will save $488

o A family with a single earner and two children making $80,000 will save $922

o A family with dual earners and two children making $100,000 will save $614

Liberal Premier Graham has sounded decidedly anti-tax in recent interviews, recognizing that lowering taxes will provide actual stimulus to the economy and within reason, (see Laffer Curve) increase tax revenues, as will flattening taxes to remove disincentives to work and invest more.

That being said, deficits threaten to undue these positive moves if spending is not brought under control. In any event, formerly competitive Ontario is looking rusty and past its prime by comparison, where it faces all-time record deficits, and its very modest tax relief in the lowest bracket will be offset by a hike in surtaxes.