New Brunswick Minister of Finance, Blaine Higgs, has said we need to be concerned about the deficit and lost of provincial revenue.
The NB Common Front for Social Justice is concerned and that it why it has been opposed, from the very beginning, to Premier Shawn Graham’s income tax cuts for individuals and corporations.
They knew it would have a negative impact on the provincial government’ s budget.
They have been asking the provincial government to return to the 2008 tax brackets and add another one for those making more than $150,000 a year so as to bring in more revenue, but in a fairer way, to the provincial coffers.
Rod Hill, professor at UNB Saint John, has quantified what would have been the revenue for the provincial government and says that the actual personal income tax reductions since 2008 have resulted in a total of about $783 million in loss revenues. Other tax reductions (e.g. corporate tax and property tax changes) are not included.
Professor Hill : "I conclude that the marginal tax rate reductions resulted in a total decline in provincial government revenues of about $733 million (2009 dollars) during that four year period. Expressed in today’s dollars that would be about $783 million. Half of all of those reductions went to the top 10 percent of income earners, while only 10 percent went to the bottom half of taxpayers. Why are we borrowing more than $100 million a year to give tax reductions to people making more than $80,000?"