New Brunswick is considering scaling back its new tax on the top 1 per cent in light of federal Liberal plans to adopt a similar tax hike nationwide, a pledge that is raising concern it could hurt Canada’s cash-strapped provinces.
New Brunswick’s Liberal government raised its top tax rate earlier this year after the party successfully campaigned on the issue in the fall of 2014. But federal Liberal plans to also hike taxes on the top 1 per cent have the province rethinking its approach, given that its top earners would end up paying a total of 58.75 per cent, the highest in the country.
In an interview with The Globe and Mail, New Brunswick Finance Minister Roger Melanson said prime-minister-designate Justin Trudeau’s victory means his government may have to reconsider the tax hike he announced in the province’s March budget.
“Before any final decision is made, we want to sit down with the new finance minister, federally, when we know who that is … to clearly understand what it is exactly that would be brought forward,” he said. “Based on that, we are open to do some adjustments.
“As much as we need incremental revenues, we also want to be competitive.”