Depends on who you ask:
The wise LPG – head of the Conseil economique: Leaders OK with deficit
The SJ Board of Trade: Business leaders worry about provincial deficit
I still think there is a 2 percentage point rise somewhere down the line in the HST. I don’t know that you can deeply cut corporate and personal income taxes and try to make that back by economic growth or by fiscal restraint. They didn’t put it in this budget because it would be another big red bullseye but I think it’s in somewhere down the line. The province raises about $126M per 1 percentage point on the HST. Adding two percentage points would raise almost $260M (ceteris paribus) – only one third of the way to eliminating a $750M deficit. The total corporate income tax collected in NB in fiscal 2010-2011 is projected to be $187 million (see page 226). In other words you could triple the corporate tax rate and still not eliminate the deficit (ceteris paribus).
The entire personal income tax collected in 2010-2011 is expected to be $1.19B. In other words if you could raise personal income taxes by 60% and you wouldn’t quite have enough money to pay down the deficit.
Just to put some perspective on it.