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New Brunswick earns a B- on provincial budget

The Canadian Federation of Independent Business (CFIB) is giving the Gallant government a B-minus grade on its first provincial budget which was released on March 31st in Fredericton.

Heading into the budget, CFIB was looking for a plan that would reduce government spending and create measures to better support entrepreneurship in New Brunswick, but was also clear that tax increases should be avoided at this time.

 

 

In CFIB’s pre-budget survey, New Brunswick members indicated that they wanted the province to balance its budget. But that doesn’t mean that the government should take the easy way out. In fact, 77% of our New Brunswick members did not agree with an increase in the HST. With many New Brunswickers and businesses struggling, going back to them for more tax dollars would be unfair without government first doing its due diligence, prioritizing its spending, and trying to provide services as efficiently as possible.

Budget highlights:

  • The government has made small steps so start controlling its spending;
  • The government confirmed the reduction of the small business corporate income tax. It will gradually go down to 2.5% over the next 3 years;
  • The investor tax credit is going up from 30% to 50%. This enhancement will increase the maximum tax credit from $75.000 to $125.000 per year for someone who invests in eligible small businesses in the province.

Budget lowlights:

  • Spending reduction doesn’t go far enough;
  • We weren’t presented with a concrete and credible plan that will lead to a balanced budget;
  • The fuel tax increase will have a negative impact on some businesses, including those in the transportation sector.

 

 

Audio: CBC Information Morning

Seniors advocate Cecile Cassista, economist Richard Saillant and Denis Robichaud of CFIB discuss the many facets of the provincial budget.

 

Video: Global News Report

2015 New Brunswick budget: See stakeholder reactions to how the budget will affect their groups.

 

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