A Chronicle Herald story quotes AIMS VP of Research John Williamson, who argues that HST hikes “will mean more revenue for governments and less in the pockets of working families.” Read the full article on the Chronicle Herald website.

Canada Day revellers likely weren’t thinking about it, but Atlantic Canada has taken another step toward becoming the country’s high-tax ghetto.

New Brunswick and Newfoundland and Labrador raised their HST from 13 percent to 15 percent on Friday, joining Nova Scotia with the highest tax rate in the country. They inch just ahead of Quebec’s combined sales tax of 14.98 percent.

Prince Edward Island will join the highest-tax club populated entirely from the East Coast when it hikes its HST in October.

It’s no secret that all four Atlantic provinces are facing budget squeezes, in part on account of aging populations and rising health care costs.

But the Atlantic Institute for Market Studies says contrary to solving the revenue problem, higher taxes often encourage spending and make it worse.

What it’s really doing is condoning extra government spending on the taxpayer’s dime, AIMS VP of research John Williamson said in an interview Sunday.

“This will mean more revenue for governments and less in the pockets of working families.”

On the surface, extra cash for a cash-strapped government seems like a foolproof plan. But Williamson’s research shows that tax hikes often lead to overspending.

Read the full article on the Chronicle Herald website.