Under the legislation introduced Tuesday, personal income tax rates would be reduced in four tax brackets, with the largest reduction for incomes between $142,534 and $162,383 a year. This category is abolished, with incomes in this category being part of the third category, reducing their provincial rate from 17.84 per cent to 16 per cent — a reduction of 1.84 percentage points. Other brackets will have smaller reductions. Incomes between $43,835 and $87,671 would see a smaller reduction, for example, from 14.82 percent to 14 percent.
Aiming for “balance”, says the Prime Minister
Premier Blaine Higgs defended the bigger cut to higher earners, saying it was part of a “balance” he was getting and the cut could help attract more doctors to the province. “You can’t expect people to come and invest and work if their tax levels are such that you’re not considered a desirable place,” he said. “It has to be a holistic view of what works, so New Brunswick is being looked at.” Jill Green, the minister responsible for housing, said she was not yet ready to say whether the cap on rent increases for 2022 would be extended next year. (CBC News/Jacques Poitras) The province also announced tax changes aimed at incentivizing developers and landlords to produce more housing. The legislation would move until next year the date for its phase-out by 50 percent of the provincial property tax rate on non-owner-occupied residential properties, such as apartment buildings. This was supposed to be completed in 2024, but will happen in 2023.
No decision on rent cap
And assessments on newly constructed apartment buildings will be phased in over three years, with assessed values dropping to one-third of the total the first year and two-thirds of the total the second year. “We know there is a supply issue,” Housing Minister Jill Green said. René Legacy, the liberal economic critic, said tax cuts alone will not make life more affordable. (Jacques Poitras/CBC) She said she was not yet ready to say whether the cap on rent increases for 2022 would extend into next year. The two opposition parties in Parliament contested the income tax cuts, but to different degrees. “Who am I to stand here and say it’s not good to cut taxes?” said liberal economic critic René Legacy. But he said tax cuts alone won’t make life more affordable. “But the question is do you cut taxes and the relief will only be a year later. You can’t take it in isolation. It can’t be the excuse to solve everything, that we cut taxes and everything. It’s good now” . Green MLA Kevin Arseneau said the skewing of most of the savings to higher income brackets was a sign of the government’s skewed priorities. Green Party MP Kevin Arseneau said the skewing of most of the savings to higher income brackets was a sign of the government’s skewed priorities (Jacques Poitras/CBC) “This government has helped people who have trouble making the last payment on their Porsche, not people who have trouble eating, paying for their housing, paying for their basic needs,” he said. In 2021 and 2022, the government lowered the tax rate for the lowest income and raised the threshold below which people pay no provincial income tax at all. Tuesday’s bill had no rate cut for the lowest bracket and no cap increase.
