The road to lower taxes leads to New Brunswick
CHARLES CIRTWILL
From Friday's Globe and Mail
March 20, 2009 at 12:00 AM EDT
With the significant economic shocks in Southern Ontario, we are starting to
see signs of a trickle of out-migration to non-traditional destinations such
as Atlantic Canada. Going down the road might actually mean heading east for
a change.
If the New Brunswick government has anything to say about it,
that trickle will soon be a flood. The province has inaugurated this year's
budget season in Atlantic Canada and has done so with a bang.
While not perfect, New Brunswick's budget includes a "plan for lower
taxes" that will leave almost every other province green with envy.
Stated simply, by 2012, New Brunswick will have the lowest corporate tax
rate in the country (unless the rest of us elect to keep pace). This year,
it will be tied with the largest small-business tax limit (at $500,000) and,
again by 2012, only British Columbia and Alberta will have a substantially
more attractive personal tax system. Absent significant rethinking by most
other provinces, New Brunswick will be the place to live, work, raise a
family, start and invest in a business. Now that is economic stimulus.
New Brunswick appears to have recognized what few others have: that economic
stimulus need not pass through government hands first. All economic stimulus is
funded by the taxpayer. Stimulus in the form of infrastructure and corporate
subsidies always see a little taken off the top as government makes payroll for
the people collecting the money and issuing the cheques. Stimulus left in the
hands of the taxpayer is both more immediate and more local: It will be spent at
your corner store, your neighbour's hardware store, the hair salon your brother
owns and the garage his wife manages.
As I said, however, this plan is not perfect. The basic personal exemption is
not set to rise nearly high enough or fast enough. People making less than
$20,000 and families making less than $30,000 will still be paying provincial
taxes in 2012. A higher basic personal exemption is a better, more effective,
more affordable anti-poverty tool than a higher minimum wage. A higher minimum
wage is paid by businesses and their consumers, it kills jobs and it increases
the income taxes government collects. A higher basic personal exemption is
supported by all of us, it encourages business to create jobs and allows people
to take those jobs, because the money they earn, they keep.
Even with fewer and lower tax rates, the New Brunswick tax system will still
be disproportionately dependent on job-killing personal income taxes.
Consumption taxes will be underutilized. Most economists agree that
consumption taxes are "better" taxes.
But ignoring the economists for a minute, had the provincial government gone
ahead with a two-point increase in the harmonized sales tax (the blended version
of its sales tax and the federal GST), it could have increased the basic
personal exemption further and faster, it could have funded a provincial HST
rebate, it could even have considered matching the federal Universal Child Care
Benefit. All of these things would have helped the least advantaged among us in
far more meaningful and far more immediate ways. But the savings on offer are
real and significant, nonetheless, and will do far more for the average New
Brunswicker than investments in infrastructure or the distribution of government
largesse to select industries.
As to the question of stimulus, while I do not agree with those who argue
that savings are "lost" to the economy, knowing the HST was going up by two
points in six months might encourage you to make that purchase today, especially
if you know you're going to get even more tax savings tomorrow. This would have
been an effective response to the argument that large portions of tax reductions
are likely to be saved as opposed to spent.
All this is just to show what further improvements New Brunswick could make,
and what may well be on offer this time next year, or the year after. Overall,
this plan for lower taxes will do more for New Brunswick than any of the
economic plans currently being discussed by other provincial governments. If you
are in Southern Ontario (or anywhere else in Canada) and making travel plans,
you now have much more to think about.
Charles Cirtwill is executive vice-president of the Atlantic Institute for
Market Studies.
Source
Canada faces a hell of a
child birth problem, the birth rate is declining, men simply don't wish to be
fathers, there is too much liability and those unlucky divorced fathers simply
cannot afford to remarry and have "more kids". Often the only solution is for a
man who can't see his own kids is to meet a woman who allready has kids. That
does nothing for the child birth rate, and the only solution to solve that
gigantic economic problem is legislation for equal parenting upon separation.
Don't believe the propaganda of that gay judge, he claims he orders equal
parenting every week, if it was true, he would be the only judge in Ontario
making those orders and we all know that that claim is pure excrement.
Canada shares a problem with some third world countries that have a corrupt
judiciary, Canada's corrupt judiciary is on a never ending path of destruction
and disturbingly, child abuse, yes, the worst child abusers in Canada are Family
Court Judges of the Ontario Superior court who practice, "male gender
apartheid", they call it "the process of justification", the smiley face of a
politically correct legal decision that generally has one forumulae, she gets
the kids, he becomes a slave for her till the kids are finished their second
degree.
You would think that the object of divorce was for the parties to move on with
their lives, you can forget that if you have the misfortune to get one of pieces
of Judicial Vermin , the worst judge in Eastern Ontario, "the very wost judge"
as the lawyers call him, the dishonourable Justice Allan Sheffield who thinks
nothing of terminating a child right to have a relationship with a father.
If you are a male self rep heading for family court, think of Canada's number
one problem, corrupt judges, and if you are unlucky enough to be heading to
court in Ottawa Ontario, watch out for the corrupt judge, Alan Sheffield. check
out the research and blog by Peter Roscoe at www.OttawamensCenter.com
- Posted 21/03/09 at 12:41 AM EDT
Source