Tax Policy in New Brunswick: Time to Check the Results

Fredericton: Three years after New Brunswick adopted tax reforms; it’s obvious that they’ve failed workers of this province.

According to CUPE NB President Daniel Légère, the government needs to go back to a progressive tax system where individuals and companies pay their fair share of taxes.

“Decreasing taxes for big businesses and for high income earners has taken hundreds of millions of dollars away from the province.”

“At the time, the Liberal government said that this tax reform would attract new families and businesses to the province. The government completely ignored warnings from economists and civil society. Tax reform didn’t spur the economic growth that the government predicted and our main resources, our workers, continue to leave the province to earn a living,” said Légère.

“Since tax reform was adopted, the government has surrendered hundreds of millions of dollars in revenues every year. It’s not enough for the Alward government to cancel the last tax reduction called for in the tax reform. They’ve got to change directions and go back to a progressive tax system!”

“Last week, Horizon Health Network cut 65 positions. Cutting jobs means cutting services. In this case, the rural regions will be the ones that pay. The community health centres in McAdam, Blacks Harbour, Minto, Harvey and the Tobique Valley will offer fewer services. New Brunswickers are paying the price of this tax reform and are suddenly finding themselves with fewer essential public services like health care! These reductions in services are the result of the two percent budget cuts imposed by the government.”

“Health care professionals are demanding improvements in community health care, not cuts. This is a very backward step.”

“Premier David Alward has adopted the same approach as his predecessor: an approach that favors big businesses over people. He’s attacking public services instead of fixing the source of the problem: tax reform!” Légère concluded.