New Brunswick’s income tax rate has recently been reduced in an effort to entice newcomers, particularly physicians, to the province.
Those making above $145,955 will gain the most from the recently announced reductions, while those making under $44,887 would not get any tax relief.
The administration claims that is on purpose, with Premier Blaine Higgs telling the legislature that the reductions are made to make the province more competitive with other regions in terms of taxation.
It’s happening in unprecedented numbers, Mr. Speaker, so when people look here, they don’t want to look at the region with the highest taxes in the nation, Higgs said. “What we’re doing in all places is trying to find innovative ways to have people want to come, work, and live in New Brunswick, and that’s happening in unprecedented numbers.”
In scrums with reporters on consecutive days, Higgs and Finance Minister Ernie Steeves both mentioned doctor recruiting, indicating that the government also views the cuts as a sort of doctor recruitment strategy.
“We’re not drawing in as many folks as we should. According to Steeves, some of the medical specialists we need are in the higher tax bracket.
Liberal Leader Susan Holt says it is illogical to assert that a reduced tax rate will be the key to drawing more residents to the province.
People that are interested in relocating to New Brunswick are not telling us that, she said.
“What we’re hearing from folks who are interested in relocating here is that they want to be close to nature, they want to be able to buy a property, and they want access to a doctor.
I haven’t heard that they’re analysing our tax structure to see if they can save $250.
New Brunswick has had an unparalleled rise in population over the previous two years. The population of the province was 775,610 as of the 2021 census. Statistics Canada now estimates the population to be over 820,000.
Kevin Arseneau, a finance critic for the Green Party, claimed that the tax cut money was essentially being used as an immigration tactic and that it would have been much more effective to strengthen the infrastructure, which has been more strained due to the province’s rapid growth.
If the education and healthcare systems are failing, “I don’t imagine someone who makes $140,000 will migrate to New Brunswick,” he said.
They won’t travel here for $3,000, I assure you.
This is a really poor investment.
Two years in a row, the government has lowered income taxes. March’s budget announced increases to the basic personal amount and the low-income threshold. Steeves said the intention is to continue lowering taxes, but wouldn’t provide details on when additional tax cuts are likely to come..
Opposition parties contest the assertion that tax cuts will increase immigration, note
About Author
