There is Another Way Forward
When the current Newfoundland & Labrador government took office in 2015 they were faced with a very serious fiscal situation. Though the current government didn’t create the problem, it is their job to fix it.
The 2016 budget increased taxes and fees to citizens by nearly $900 million. At the same time spending increased by $223 million. Government plans to keep spending at current levels and rely on revenue from tax increases and—they hope—increasing oil prices to balance the budget by 2021-22.
There are two major problems with government’s plan:
- Our taxes are too high.
- Government still spends more than we can afford.
We are taxed at high rates because our government spends too much.
Spending grew by 63.3% over the ten years from 2005-6 to 2015-16 and has not significantly decreased since. We spend 27.1% more than the average of the other Atlantic Provinces—a difference of $2,942 per person.
Government could reduce spending by $1.1 billion and still have the highest per person spending in Atlantic Canada.
In spite of all this spending, our outcomes in health, education, the labour market, and infrastructure investment underperform in comparison to the rest of the country. Another Way Forward is a plan that focuses less on taxing the citizens of Newfoundland & Labrador, and more on reducing government spending. It is a plan to make our province the most affordable place to live, work, and do business in Atlantic Canada by reducing our personal and business tax burdens. It includes suggestions on how government could do things differently to save money, improve outcomes to citizens, and lower our tax burden. It is a better way forward for our people, for our businesses, and for our futures.
We need to hold our government accountable: Let them know you believe their plan needs a correction. Demand that they be bold, decisive, and courageous in finding ways to save money so they can lower your taxes.
Get the facts out
- NL has the 2nd highest personal tax burden in the country.
- We have the highest gas tax in the country.
- We have the highest tax on insurance in the country.
- Most NLers pay a higher portion of their salary in income tax than they would in other provinces.
- We have the highest per person government program spending in Canada.
- We spend 27% more per person on hospitals than an avg province, but our health outcomes lag behind.
- Wages in NL’s core gov’t are 29% higher than the Atlantic Canadian average – $311 a week higher.