For every step forward, Nova Scotians are taking a step back with “bracket creep”
HALIFAX, NS – For most Canadians, getting a raise is good news. But in Nova Scotia, gains made in a cost-of-living pay raise can be eaten up by so called “bracket creep.” The bottom line: even after the cost-of-living raises, workers’ buying power has eroded.
Today, PC leader Jamie Baillie announced that the Progressive Conservatives will make Nova Scotia the 8th province to end bracket creep. Baillie made the announcement at the Halifax home of Cora Cole and Geoff Herod, who have a five-year-old son.
“For too long Nova Scotians have not been able to get ahead,” said Baillie. “Their incomes went nowhere because they were losing ground because of higher taxes.”
Baillie says the PCs will index Nova Scotia’s income taxes to inflation, ensuring tax brackets move up along with cost-of-living pay increases.
This change will leave $6.5 million extra on the paychecks of Nova Scotia workers in the first year. By its fourth year of implementation, the value of this tax cut will grow to $26 million.
According the Canadian Federation of Independent Business, bracket creep costs the average Nova Scotia family almost $600 a year in over-taxation.
“As a working family, this will allow us to put some money in an education savings plan for our son or invest in RRSPs,” Cole said. “The NDP promised relief for families but didn’t deliver.”
In opposition, the NDP called bracket creep a “stealth tax” and said it was the same as the Minister of Finance stealing from your purse or wallet. In government, the Dexter NDP kept collecting it.
In the past, the Liberals called bracket creep “robbery,” but their platform doesn’t say anything about stopping the crime.
The fully accounted PC Party platform offers significant tax relief to Nova Scotians, the highest taxed people in Canada. The PC plan to rollback the HST, cut the tax-on-tax on gas and set the small business tax to zero will help Nova Scotians make ends meet, grow our economy and create jobs.