From Moody’s report released yesterday, the following is their table on the changing nature of government revenue in New Brunswick. I don’t have the link to the original document – I can’t find it online.
I think this speaks for itself. Irrespective of the need to eliminate the deficit, we have got to figure out a way to boost own source revenue.
CONSOLIDATED OPERATIONS (C$MILLIONS, YEAR ENDING 3/31)
| 2007 | 2008 | 2009 | 2010 | 2011B | % Change 07-11 | |
| Personal Income Tax | 1,175 | 1,256 | 1,323 | 1,296 | 1,187 | 1.0% |
| Corporate Income Tax | 218 | 267 | 111 | 200 | 187 | -14.2% |
| Property Tax | 352 | 352 | 385 | 412 | 420 | 19.3% |
| Sales Tax | 872 | 841 | 1,061 | 933 | 1,010 | 15.8% |
| Gasoline Tax | 215 | 198 | 195 | 198 | 201 | -6.5% |
| Federal Transfers | 2,487 | 2,578 | 2,727 | 2,901 | 2,969 | 19.4% |
| Sinking Fund Earnings | 232 | 231 | 233 | 216 | 229 | -1.3% |
| Other | 1,093 | 1,242 | 974 | 732 | 1,044 | -4.5% |
| Total Revenues | 6,644 | 6,965 | 7,113 | 6,990 | 7,247 | 9.1% |
Looks pretty straightforward, doesn’t it. Follow the negatives and look at what has dropped. Corporate tax and gas tax.
Introduce a new tax on gasoline- 10 cents a litre, and buy insurance against future industrial accidents causing environmental nightmares.
Build small businesses to value add NB resources and increase the base for corporate tax. Start in the arts and culture sector.