Match PC promise to cut HST, lobby group urges N.B. political parties

A self-styled taxpayer advocacy group is urging all political parties in New Brunswick to fall in line with the Progressive Conservative promise to cut the harmonized sales tax if it is re-elected in this fall's election.

Jay Goldberg, the interim Atlantic director for the Canadian Taxpayers Federation, told reporters that the Liberals, Greens and others should be prepared to match what he called"a landmark affordability proposal" to cut the HST by two percentage points.

"I think it's important for all parties to look at it, or present other very compelling tax cut alternatives to really leave money in peoples' pockets," he said.

Goldberg singled out the Liberals in particular, who raised the provincial portion of the HST from eight per cent to 10 per cent in 2016.

Liberal Leader Susan Holt has promised a range of affordability measures if she becomes premier, including eliminating the provincial part of the sales tax on N.B. Power bills.

She has also promised to cap rents and eliminate a PC-imposed "carbon adjustor" mechanism that allows oil companies to pass on the cost of federal clean-fuel regulations to customers.

That adjustor fluctuates weekly and is 3.7 cents per litre this week.

But Goldberg saidthe Liberals and other parties should be looking at bigger tax cuts that reduce government revenues by amounts similar to the HST reduction.

The estimated cost of the cut to the government would be $450 million.

A spokesperson for Holt said she is sticking with her position that "targeted" affordability measures are better than an HST cut.

The PCs made the promise at a party news conference last month, with Premier Blaine Higgs in his role as party leader pledging a one-point reduction next April and another one in 2026.

The HST is a combined federal-provincial sales tax with a 10-per-cent provincial rate and a five-per-cent federal rate.

The Liberal government of Premier Brian Gallant raised the provincial rate from eight to 10 points in 2016 as a way to reduce the budget deficit. The province has run surpluses every year since Gallant's final year in office.

Another fiscally conservative organization, the Fraser Institute, said in July that cutting income taxes is a more efficient way to help people and the economy than an HST cut.

Goldberg said that Higgs has already made some income tax reductions, but a larger cut would also be welcome.

The federation calls itself "a citizen's group dedicated to lower taxes, less waste and accountable government."

It doesn't reveal its donors but says 76 per cent of its funding comes from donations of less than $1,000, and it doesn't accept money from outside Canada.

It also says it is non-partisan and bans its staff and board members from joining political parties.

The election is scheduled for Oct. 21.