The Canadian Taxpayers Federation posted its policy wish list for Newfoundland and Labrador’s election campaign.

“We did our homework to find ways to save money and grow the economy,” said CTF Atlantic Interim Director Renaud Brossard. “We’re happy to let any and all political parties copy that homework and implement the right policies to get Newfoundland and Labrador back on track.”

The Canadian Taxpayers Federation’s proposals are:

• Cut all income tax bills to boost household disposable incomes;
• Replace business subsidies with business tax cuts to stimulate all industries;
• Reduce government employee compensation to bring back financial sustainability;
• Cutting elected officials’ pay to lead by example; and,
• Eliminating $25 per day child care subsidies.

Despite Newfoundland and Labrador being a have-province, household disposable incomes in the province are five per cent below the national average. There is a clear link between household incomes and economic growth.

“Helping Newfoundland and Labrador recover can’t be achieved by taking more out of their pockets and more out of the local economy,” said Brossard. “Rather, it is achieved by giving Newfoundlanders and Labradorians the means to support their local economy by reducing their tax bills.”

The Canadian Taxpayers Federation is recommending $317 million in income tax cuts, which would deliver $893 in annual tax savings for an individual earning $50,000.

Replacing $42 million in subsidies with business tax cuts would allow the province to reduce its general corporate tax rate from 15 per cent down to 13.25 per cent, making it the lowest in Atlantic Canada.

“Replacing business subsidies with business tax cuts would help the province attract more investment and create good, well paying jobs in all sectors,” said Brossard.

In 2020-21, the government will spend 66 cents out of every dollar it collects on employee compensation, or $3.63 billion. Reducing employee compensation by 15 per cent would save $615 million.

“You can’t commit to making the budget sustainable without addressing its biggest bill: employee compensation,” said Brossard. “Whether it is by reducing compensation packages or the number of employees, it is clear the province can’t avoid reducing the cost of employing bureaucrats.”

The Canadian Taxpayers Federation’s prebudget submission to the government of Newfoundland and Labrador is available at this http://www.taxpayer.com/media/NL Prebudget 2021-22 - Getting 'the Rock' out of a hard place.pdf