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Common Front for Social Justice |
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Front commun |
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Common Front For Social Justice 96, ave Norwood, #208 Moncton, NB E1C 6L9 Tel.: 851-7084 fcjsnb@nbnet.nb.ca |
Negative impacts of the N. B. fiscal reform
I am writing to expose the effects that the fiscal reform proposed by the N. B. Department of Finance will have on those with fixed income, social assistance and minimum wage.
First, the raise of the GST by 2% is definitely going to hit the poor. Between 1996 and 2008, inflation has gone up 30%. During that time frame, social assistance rates have gone up only 9%. Minimum wage between 1996 and 2008 is up only to 17%. Low income senior cheques are indexed, but this is not keeping up with inflation.
The price of furnace oil right now, for 100 gallons, is $544. Adding 2% more to the current 13% GST brings this amount to $626 for 100 gallons. Right now poor people can’t even meet basic needs. A single person with permanent disability and receiving social assistance only gets $521 a month. In drafting its tax reform proposal, did the Department of Finance do research at all concerning low income people? I don't think so! But I remember the government saying there are other priorities. I hope you think it is worth looking at the effects of the tax reform on poor pople, for the rising prices cost one life this past winter. And there was a report of 610 people being cut off from electricity during 2008 winter. One wonders how many more have been cut off since then. The finance reform proposes a carbon tax also. What about its effect on all low-income people living in rural areas travelling for health services?
Government talks about helping the most vulnerable, pretending pity, when they only make things worse for them. Regressive taxes on goods of first necessities are very unfair. How many more will have to freeze to death this coming winter because of the rising fuel cost and the extra 2% HST added? The raise for social assistance in October is only 3% and that is gone before they get it.
What sacrifices is government going to make for big business? I will admit the tax reform proposal is well put together to shift more wealth from the poor and middle class to the well-to-do. This whole plan worries me. It is unsettling to think how far it will go. There will be less money for the government with the suggested cuts to income tax for the rich. If so, what services are going to be cut? How many might loose their jobs? Also, what cuts are going to be made in social assistance programs? The Social Development Department has already become a loan company for people who cannot pay their energy! This helps sometimes with bills but later, the advanced money is all deducted from the welfare clients’ monthly checks. How long do you think this will go on before they have nothing left on their check?
I have never seen a government so callous and cold. Can non-profit groups provide the money people need to survive? If these changes go through, N. B. will become a “Poverty Province”.
Do not forget that we, the population, outnumber the well-to-do when election time comes. I do not think that one death of a man cut-off by NB Power last winter is going to sit well at the next election. Many people will not forget this for they are convinced that, for the current government, money and big business is very important but that peoples’ lives are not!
Linda McCaustlin, Co-Chair Common Front for
Social Justice
93 Laura Lane, Moncton, NB E1E 3S9; Telephone: 855-7046