A mystery tax

Published Wednesday November 19th, 2008
A4

Provincial Liberals are learning some lessons from their federal counterparts that additional fuel taxes are not very popular with the public. A month after the federal Liberals had the lowest voter support in history, NB Finance Minister Victor Boudreau called the likelihood of NB implementing a carbon tax "pretty slim."

Of course this leads to the question of what will be in place of a carbon fuel tax. The Liberals released their proposed major tax reforms in the spring, calling for deep cuts in personal and corporate income taxes that would be replaced by increasing the Harmonized Sales Tax by two points, back to the original 15 per cent, and bringing in a carbon tax.

In their position paper, the Liberals estimated personal and corporate income tax cuts would cost the provincial government $500 million, to be replaced by $250 million from HST hike and $150 million in internal cuts. The carbon tax was expected to raise $100 million.

With the carbon tax off the agenda, how will NB raise $100 million? So far there is nothing definite. The minister is suggesting the income tax cuts might not be so deep, but the Liberals should stop floating trial balloons and come clean with any suggestions to this tax reform policy to let New Brunswickers weigh in on government's change of heart.

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