Thursday, June 5, 2008

New Brunswick government releases options for taxation reform

FREDERICTON — The New Brunswick government has released a list of options it says could see personal and corporate income taxes cut by as much as $500 million per year.

The discussion paper on taxation reform presents options ranging from a flat tax for individuals to lowering the general corporate tax rate to as low as five per cent from the existing 13 per cent.

Finance Minister Victor Boudreau says the goal is to make the province more competitive, and a committee will gather input between now and the fall.

Boudreau says the paper also suggests a new carbon tax and a two per cent increase in the HST that together would generate about $350 million per year.

Environmentalist David Coon of the New Brunswick Conservation Council says the carbon tax is just a tax grab to offset other cuts.

David Plante of Canadian Manufacturers and Exporters says he's pleased with the proposed cut in the corporate tax rate, but worries the carbon tax and increased HST would increase already high energy costs.

No comments: