Description: New Brunswick is in the midst of an election campaign, leading up to the September 22, 2014 general election. Some have also said the province is also in the midst of a fiscal crisis, with one popular book on the province’s future using the words “Fiscal Cliff” in its title. In an effort to grapple with financial troubles, the Liberal Party leader, Brian Gallant, promised a tax increase on the wealthiest New Brunswickers that would make the personal income tax rates on these individuals the highest in Canada.
Date: September 12, 2014
Questions for Discussion:
1) In the article, the Progressive Conservative leader, Premier Alward, suggests these high tax rates will make it hard for the Province to attract high-income earners like medical specialists. To what extent do you think high income earners may make relocation decisions based on provincial income tax rates?
2) For accountants, do you think an increase in tax rates can be ‘good news’? That is, it may prompt more clients to seek professional advice to lower their tax burden.
3) As an accountant for government, how would you account for the increase in revenue brought by this increase in tax on higher income earners?