The New Brunswick government is proposing tax reforms that would lower corporate tax rates and personal income tax rates, but increase the HST and introduce a carbon tax. In a discussion paper released this week, the New Brunswick government proposes to lower the corporate tax rate from its current 13 per cent to 10 per cent, seven per cent or as low as five per cent. Also the government is looking at lower, flatter and simpler personal income taxes for individuals.The report also suggested increasing Harmonized Sales Tax by two per cent and establishing a carbon tax. Under that plan the HST would climb back to 15% from it’s current 13%. Also a carbon tax is being considered. A carbon tax would encourage energy conservation and the use of cleaner fuels and would lead to fewer emissions in the province.
This proposal has some positive points as well as some negative points. If corporate tax rates do go down, the government hinted that may eliminate other tax credits currently offered to corporations. As well a lower income tax for individuals provides incentives for working harder. However a HST increase is a step in the wrong direction. What do you think New Brunswick?