Taxpayers Federation releases 2023-24 Prince Edward Island pre-budget proposal
The Canadian Taxpayers Federation is releasing its 2023-24 Prince Edward Island pre-budget proposal, calling on the King government to lower the sales tax, end bracket creep, lower income taxes and reduce the deficit.
“With Islanders facing decades-high inflation and soaring living costs, now is the time for tax relief,” said CTF Interim Atlantic Director Jay Goldberg. “Prince Edward Island families are paying $1,000 more for groceries this year. Families need help and the King government can help by lowering taxes.”
The CTF’s proposal calls on the King government to reduce the provincial portion of the HST from 10 per cent to eight per cent and end a sneaky form of income tax hikes known as bracket creep. Bracket creep occurs when government’s don’t move tax brackets with inflation and inflation sends taxpayers into higher tax brackets even if they can’t actually afford to buy more.
“It’s time to end bracket creep once and for all,” said Goldberg. “Bracket creep hurts families all across the province and it will be even more painful this year because of rampant inflation. The King government owes it to taxpayers to end this unfair practice of tax hikes.”
A taxpayer earning $50,000 this year will pay $298 more in income taxes than would have been the case if tax brackets were indexed each year since the present system’s introduction in 2008. Prince Edward Island is one of only two provinces that still fails to index its tax rates to inflation.
The CTF’s proposal is also calling on the King government to reduce every income tax bracket by five percent, bring government employee wages in line with the private sector and engage in a comprehensive spending review with the aim of reducing and eliminating the deficit.
“Prince Edward Island is now carrying more than $2.4 billion in debt and our kids are going to have to pay for it,” said Goldberg. “It’s time for meaningful government reform that will make the province more responsible, efficient and effective and save taxpayers money over the long term.”
The CTF’s full pre-budget proposal can be viewed HERE.