Nova Scotians, who pay the highest taxes in Canada already, are going to pay a lot more taxes to the provincial government this year compared to just a few years ago. Out of control spending (over 4% increase each year) by the provincial government needs to be fed - so all agencies are on the hunt for more revenue – taxpayers pay $850 more from five years ago, (not counting higher fees, higher NSLC pricing, higher levies etc), plus the new cap and trade carbon tax, estimated at over $600 in additional costs per taxpayer has been agreed to. Add to this the ‘creepy tax’.
Per the Canadian Taxpayers’ Federation (CTF) Nova Scotia is only one of two provinces in Canada (along with PEI) that does not index its tax brackets to inflation. So as salaries increase year after year because of inflation (either directly indexed to inflation or indirectly through cost-of-living raises) the tax brackets remain the same. Inflation pushes earners into higher tax brackets which means higher tax rates meaning higher taxes for the earner making the same salary after inflation. The CTF estimates it will cost about $250 each year for the average $60,000 earner.
Even though Premier McNeil called for an end to bracket creep when in opposition we at the Atlantica Party predict government will take no action to fix this. Why should it? Government’s focus is to extract money from Nova Scotians at whatever cost and by any means necessary (that is why the NSLC exists). How else is government going to maintain the ever-increasing spending levels deemed politically expedient by the status-quo Liberals, PCs and NDP?