News Release Archive

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


Contact: Donna MacDonald  902-424-8787

trp                     May 17, 1996 - 12:05 a.m.