Better Health Care the Big Winner From Tax Changes

PREMIER'S OFFICE--Better Health Care the Big Winner From Tax Changes

To provide more money than ever before for health care, Premier John Hamm announced today, April 20, that personal incomes taxes will be adjusted upward to the former rates for some Nova Scotians.

Despite the changes, more than 90 per cent of Nova Scotia taxpayers will still pay less provincial taxes in 2004 than they did in 2003. The premier also noted that 53 per cent of Nova Scotia taxpayers, including all of those at the lower end of the income scale, will still benefit from the province's full 10 per cent income tax reduction.

The details will come in the provincial budget on Thursday, April 22.

"Lower taxes for working families continue to be a priority," said the premier.

The premier said the change is Nova Scotia's best choice to manage the reality of the federal government's refusal to improve health-care funding and equalization.

"Other provinces have been forced by Ottawa to raise their sales tax, delay improvements to classroom education or put hundreds or even thousands of government employees out of work," said Premier Hamm.

"We're making a different, but nonetheless very tough, choice in Nova Scotia to put more dollars than ever before towards our plan to reduce wait times in health care, expand support for seniors and invest in our children, with our third consecutive balanced budget."

The premier noted that in the last year Nova Scotia was able to balance its budget, lower taxes and invest record amounts in health care and education, despite dealing with the challenges of a hurricane, a major flood, a winter storm, the SARS crisis and the impact from Mad Cow.

"The dollars we generate here at home in Nova Scotia are at record highs. Thanks to our growing economy, our record employment, Nova Scotia has more dollars than at any time in our history," added the premier. "But the dollars Nova Scotians receive from Ottawa remain flat."

"While Ottawa's choices have interrupted part of our plan for lower taxes, as premier, I want Nova Scotians to know this -- we will not take one more penny than we need to manage the financial problems the federal government is causing every single province and territory in Canada. And the minute Nova Scotians get the support they need from Ottawa, we will reinstate our plan for long-term economic growth through lower taxes."