Lower Taxes Will Strengthen Economy

Lower taxes are a critical component in the province's ongoing economic development strategy, says a government report released today, March 21.

Nova Scotia is the only province that has not reduced personal income taxes in recent years, says the report Lower Taxes for a Stronger Economy. This hurts the competitive edge crucial to continued economic growth.

"It's clear that establishing a more competitive tax system will make Nova Scotia more attractive to working families, highly skilled workers, business operators and investors," said Economic Development Minister Cecil Clarke. "Lower taxes for working families is an important next step of our government's growth strategy."

Since the release of Opportunities for Prosperity in the fall of 2000, more than 18,000 jobs have been created in Nova Scotia. Four times in the last 12 months, Nova Scotia has also set new records for the number of people employed in the province. Earlier this month, the Conference Board of Canada said this year's forecasted growth in Nova Scotia depends on the government's plan to lower taxes.

The report notes preliminary work on updating Nova Scotia's Business Climate Index shows that our personal income tax competitiveness is slipping. Nova Scotia is the only province whose personal income tax revenue as a percentage of GDP has increased since 1996. And, compared to Ontario and New Brunswick, Nova Scotia's tax burden is higher for both low-income single- income earners and middle-income families.

"The best investment our government can make in our people and our economy is to let hard-working Nova Scotians keep more of their own money," said Mr. Clarke. "Now that our government has balanced the budget and put forward our long-term plans to improve health and education, we are now in a position to continue our growth strategy and create more jobs."

Copies of the paper are available at all Access Nova Scotia Centres and on the Web at www.gov.ns.ca/econ/lowertaxes/ .