News Release Archive
NOTE TO EDITORS--NOVA SCOTIA TAX REFORM ANALYSIS TABLED ----------------------------------------------------------------- The detailed economic and fiscal analysis of Nova Scotia tax reform was tabled in the House of Assembly today by Finance Minister Bernie Boudreau. The 80-page report contains the facts and assumptions which support the benefits of tax reform for taxpayers, business and the Nova Scotia economy. Key findings include: - The overall economic output of Nova Scotia is projected to experience a real increase of $174 million or 0.8 per cent of the 1997 Gross Domestic Product. This will mean at least 3,000 full-time, permanent jobs. (See p. 12) - As part of a balanced package, sales tax harmonization is supported by $52 million in individual tax breaks and other benefits: a) $32 million in personal income tax reductions; b) an additional $12 million enrichment of the Low Income Tax Reduction Program; and c) an additional $8 million targeted at an estimated 62,000 low income Nova Scotians who do not pay tax. (Note: The $8 million represents more than twice what families and individuals with less than $10,000 will pay in additional sales tax (an estimated $3.8 million). This is also before price declines and other tax breaks are taken into account to ensure that Nova Scotians at all income levels will come out ahead.) (See Appendix 6, p. 46) - The tax reform package will allow all income ranges of Nova Scotians to experience a net decline in overall prices and taxes. Even without consideration of the $8 million in targeted relief, the average Nova Scotian earning between $10,000 and $20,000 per year will save approximately $66 a year. (See Table 6, p. 23) - Total personal disposable income for Nova Scotians (including direct and spin-off impacts) will increase by $127 million. (See p. 12) - The Construction, Services (e.g., Food and Accommodation), Transportation, Communications and Utilities, and Retail and Wholesale Trade sectors are projected to realize the greatest benefits from harmonization. (See Table 4, p. 18) Copies of the report are available to media at Communications Nova Scotia, Media Services, One Government Place, (902) 424-5200, or 1-800-670-4357. It will also soon be available on the Internet at https://novascotia.ca/fina/pub.htm -30- Contact: Donna MacDonald 902-424-8787 trp May 17, 1996 - 12:05 a.m.