Nova Scotia vs the Economy

November 19th, 2009

I wouldn’t want the Premier of Nova Scotia’s job these days. ¬†Well, I actually wouldn’t want it any day, but especially not when the red ink starts flowing.

The New Democratic Party was elected after promising to balance the budget and not raise taxes. ¬†Or at least that’s what the media claims…… I didn’t personally hear them say it. ¬†On November 16 the NDP announced that well, it looks like the budget won’t be balanced after all, and you know what, it looks like we’ll have to raise some taxes.

Strictly as a point of interest, did anyone really believe the NDP when they promised no taxes and a balanced budget? ¬†Haven’t we all heard these things before?

Anyway, it’s going to be interesting to see which taxes get raised and by how much. ¬†I’m guessing they’ll raise the tax rate on top earners, as they usually get picked on first. ¬†I’m also guessing they’ll bump up the HST rate by a point or two. ¬†I’m also guessing that they’ll coin these measures as “temporary” but is there anything so permanent as a temporary tax increase?

From a tax view, it will be interesting to watch what gives.

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