Common Front for Social Justice

Must we say good-bye to the Equal Opportunities program?

A certain uneasiness has set in the minds of many since the launching of A Discussion Paper on New Brunswick’s Tax System in June. They are afraid that the fiscal reforms introduced by the former Premier Louis Robichaud are in the process of disappearing. Robichaud’s tax reform was such that it provided enough money to adequately finance education, health services, infrastructures, social services, etc. Should the orientations in the Discussion paper be adopted, this will be the end of the “Equal Opportunity” program for which Ti-Louis fought so hard.

Self-Sufficiency – at what cost?

Instead of managing New Brunswick’s wealth for the common good of its citizens, the fiscal reform proposes that fiscal management be focuses on self-sufficiency. Our current government wants to reduce its dependency on income taxes and obtain a larger portion its revenues from consumption taxes. The fiscal reform would concentrate wealth in the hands of the rich. Knowing that their level of taxation would be very low in N. B., companies would come here to prosper. The most negative impact that the fiscal reform would have is to significantly diminish the government revenues arising from personal income taxes. The Province would be left with a serious money shortage to cover the needs of thousands of citizens requiring support and services. It was to offset this that Louis Robichaud had legislated a progressive taxation system to redistribute and equalize income.

Gap between the rich and the poor

Another undesirable effect of the fiscal reform is that it would increase the gap between the rich and the poor. In 2005 in N. B., 10% of the richest families with children had an average income of $121,642 compared to $7,851 for the 10% of families at the lowest end of the economic scale. These numbers, obtained from the Centre for Policy Alternatives, are based on a limited sample size and may not be as accurate as desired. However, they illustrate the enormous gap between the rich and the poor. If the reforms proposed in the Discussion Paper were accepted, this would widen the gap. Possible ensuing outcomes could increases in crimes: looting, theft, violence, etc. Such increases in social disorder would position N. B. as an unattractive province for doing a business.

Who will be affected?

An additional tax on gasoline would hurt poor people. In 2005, over 75,700 New Brunswickers worked for less than $10 per hour. Many of these needed their car to go to work. An increased tax on gasoline would be especially hard on our rural population who have no choice but to use their vehicle. As for people on social assistance, they also need to travel by car to access goods and services.

Currently, furnace oil costs $544 per 100 gallons. A modest home can easily burn 600 gallons per year. Should the proposed tax on furnace oil be adopted, heating this home in 2012 would cost the owner an additional $300 per year.

Increasing GST from 13% to 15% would cause hardships for the middle class and even more so for those living below the poverty line. Higher taxes on electricity, telephone, equipment, etc., all this would nibble at a good portion of their budget.

What will become of Louis Robichaud program?

If it were adopted, the fiscal reform described in the Discussion Paper would mean we say Good Bye to the “Equal Opportunity” program. The proposals put forth would significantly widen the gap between the rich and the poor. There would be less money in the government’s coffers and this would force cuts into certain programs. Our politicians must tell the population what are the services that risk to be cut so that the outcome of the reform is “fiscally neutral”. Long ago, the philosopher Aristotle said “Is just, that which is in conformity with the law and that which respects equality” We say NO to the overall propositions put forth for the fiscal reform.

Auréa Cormier, ndsc,
Provincial Counsellor
Common Front for Social Justice