Tax cuts needed now: young Tories
Posted Apr 3, 2012 05:58:32 AM.
This article is more than 5 years old.
Nova Scotia’s Young Progressive Conservatives are calling on the provincial government to lower the harmonized sales tax in today’s budget.
Members of the PC party’s youth arm rallied at the legislature on Monday, saying it’s time the NDP offered some significant tax relief to the average Nova Scotian.
Party president Janet Fryday Dorey said the New Democratic government broke a promise when it raised the HST by two percentage points in 2010.
“They said they wouldn’t raise taxes, and the first opportunity they had, they hiked the HST,” she said. “That’s cost every man, woman and child in Nova Scotia.”
Finance Minister Graham Steele has said the HST can’t be cut until the province starts posting a surplus, saying the two per cent is worth between $350 million and $360 million in revenue.
But the Young Tories say that’s not acceptable.
“The tax situation here in Nova Scotia is outrageous,” said Thompson. “If you compare us to provinces throughout Canada or compare us to other countries like the United States, we are the highest taxed.”
Steele did announce that today’s budget will include a cut to the small-business tax.
The province plans to drop the tax by another half percentage point, for the third year in a row, bringing it down to 3.5 per cent.
The president of the Canadian Federation of Independent Business said she hopes to see the trend continue.
“It’s good news,” said Leanne Hachey. “We applaud government for doing it, it’s the right thing and really, we’d like to see more.”
Hachey called the change “modest,” which is acceptable in the current economic climate.
“This will be very welcome news and it’s certainly better than not doing anything. We’re moving in the right direction,” she said, adding the move puts Nova Scotia more in line with the rest of the country taxation levels.
Steele says the measure will save small businesses $10 million annually.
The reduction will go into effect Jan. 1.
