Lower income taxes, what’s not to like? New Brunswick generated national attention with its proposed tax reform discussion paper during the summer of 2008. Lower income taxes for business and individuals was on the table.
Even with the added proposal to increase consumption taxes, residents and business in other provinces were looking to New Brunswick to set the course for tax reform. In its submission to New Brunswick’s bi-party committee reviewing the discussion paper, AIMS said the province should go further.
In this Commentary, based on that submission, President Brian Lee Crowley and Executive Vice President Charles Cirtwill explain that New Brunswick could scrap corporate income taxes altogether. Cutting corporate income tax will encourage businesses to locate in New Brunswick, and will encourage those already there to invest in growth.
A Fork in the Road explains that shifting the tax burden from income taxes to consumption taxes will provide a boost for investment and job creation. Options include a two-percentage-point hike in the provincial share of the Harmonized Sales Tax and a British Colombia-style tax on carbon emissions. The Commentary also also proposes replacing the four existing personal income tax brackets with a flat tax of 10 per cent.
To read the complete Commentary, click here.