I am a bit surprised the Tories are claiming to reverse the tax cuts but by only doing on on the very rich they don’t lose a lot of votes. The most recent data I have shows 1,170 people in then entire province earning declaring more than $250,000 in income. The CBC article says:
Alward said he could save $120 million over the next four years by withholding the tax cuts for people who make an average of $450,000 a year.
First, there is no tax bracket specifically for those earning $450,000 and up so unless Alward is going to establish one, the reversal of the tax cut would have to apply to the highest tax bracket which would be $118,000/year which would mean over 12,000 persons.
But let’s say he does just raise the tax rate on those earning $450,000 or more. I still don’t see how he gets $30 million in more taxes per year. This study for the Canadian Labour Congress estimated the tax cut was worth $27 million per year to those earning $250,000 or more.
But, I could be wrong – it would be nice for them to release how they are calculating their expected taxes but that would be too much to expect from any political party.
As for the corporate tax cuts – Alward is going to “cut small business tax rates to stimulate job growth and economic development”.
Sigh. After former Premier Lord cut the small business tax rate to the bone, New Brunswick had third worst rate of small business growth (decline) in North America among the 60 provinces/states -according to a Fraser Institute study. Further, total employment growth among small businesses with less than 20 employees actually dropped after the small business tax cut. Note that over 17,000 of the net 19,000 job growth came from employers with 500 or more employees (that includes government).
There are an estimated 45,000 businesses in New Brunswick and an estimated 87% of them have less than 20 employees. The only reason to cut small business taxes is political. These small business owners vote and many of them contribute to political parties.
Employment Growth/Decline by Size of Employer (2000-2006)
|Employment Change:||% Change:|
|0 to 4 employees||-678||-3.0%|
|5 to 19 employees||-480||-1.1%|
|20 to 49 employees||3077||11.2%|
|50 to 99 employees||1814||9.1%|
|100 to 299 employees||784||2.7%|
|300 to 499 employees||-2547||-23.6%|
|500 and more employees||17239||13.3%|
|0 to 49 employees||1918||2.0%|
|50 to 299 employees||2598||5.4%|
|300 and more employees||14693||10.5%|
Statistics Canada. Table 281-0042 – Employment by enterprise size of employment (SEPH) for all employees, unadjusted for seasonal variation, for selected industries classified using the North American Industry Classification System (NAICS), annual (persons) (table), CANSIM.