Majority of New Brunswickers can expect to be worse off after proposed tax reforms

    WOODSTOCK, NB, July 10 /CNW Telbec/ - Proposed tax reforms will increase
the burden on middle and low income taxpayers in New Brunswick - so says a
report presented today by Paul Moist, national president of the Canadian Union
of Public Employees (CUPE), at the public consultations on the proposals.
    Moist detailed for the panel how the tax reforms will harm - not help -
the province. The report uses charts and figures to illustrate the punitive
nature of the reforms on middle and low income New Brunswickers.
    "Behind the rhetoric of Shawn Graham's Liberals is a flawed direction:
for a majority of New Brunswickers - 60% of the lowest and middle income
households - these reforms represent a combined burden of higher taxes and
reduced services. What's more, they deprive the government of well over
150 million dollars of annual revenue. The shortfall will have significant
impact on competition and the condition of public services - notably health
and education - as well as provincial infrastructure," says Moist.
    "The CUPE study shows that the 20% of lowest income households would see
their financial burden increase by an average of $565/year while a majority
would be worse off by an average of $500/year. Yet the 20% of highest income
households will benefit from tax reductions to the tune of $5,377/year. A
person earning $300,000 a year could see reductions of $18,400. It's hard to
imagine tax reforms that are more regressive or less equitable."
    CUPE says the Graham government is also taking the wrong road by
prioritizing tax relief for businesses - the Minister of Finance stated a year
ago that "New Brunswick is the province where tax rates for business are the
lowest in Canada."
    "New Brunswick is pushing neighbouring provinces to level down, too,"
adds Moist, "which will create a vicious circle of unhealthy competition in
which only big business and the most privileged stand to profit."
    "Haven't we seen wage and wealth inequality in Canada deepen enough over
20 years? Now is surely not the time to reduce taxation levels and abolish
what's left of equality and of tax progressiveness."
    "The Graham plan needs to be completely rethought."

For further information:

For further information: Sébastien Goulet, CUPE Communications, (613)
808-0675; Pam Kapoor, CUPE Communications, (613) 853-808; CUPE's discussion
paper on the New Brunswick tax reforms:

Organization Profile

Canadian Union of Public Employees

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890