The Canadian Taxpayers Federation is calling on the Houston government to rein in spending, stop borrowing and cut the sales tax further. These are the key recommendations in the CTF’s pre-budget submission for Nova Scotia.

“Government spending in Nova Scotia is at record levels and there’s no plan to stop adding to the debt,” said Devin Drover, CTF Atlantic Director. “The Houston government needs to start living within its means.”

The Houston government is planning to borrow $1.2 billion this year and continue to borrow every year through 2030, increasing the net debt to $36 billion.

Interest charges on the debt will top $1 billion this year for the first time. That works out to about $944 for every Nova Scotian.

To tackle the growing debt, the CTF recommends:

·      A comprehensive spending review of government operations

·      Ending corporate welfare

·      Reducing bureaucrat compensation to private-sector levels

·      Cutting non-health spending to 2022 levels.

Together, these measures would save nearly $2.4 billion, which is enough to stop borrowing and begin reducing the debt next year.

The CTF also recommends tax relief to boost economic growth.

“Premier Tim Houston did the right thing by cutting taxes two years ago, but Nova Scotians are still finding it harder than ever to make ends meet,” said Drover. “That’s why Houston should go further by cutting sales and business taxes so taxpayers can keep more of their own money.”

The CTF is calling for a 1.5 percentage point cut to the provincial portion of the HST, saving Nova Scotians $464 million a year or about $425 per person. This would give Nova Scotia the lowest provincial sales tax east of Manitoba.

For businesses, the CTF recommends a 20 per cent reduction in business tax rates, which would make Nova Scotia’s rate the second lowest in Canada.

The CTF’s full pre-budget proposal is available HERE.