FREDERICTON - Premier Shawn Graham is promising to cut taxes in New Brunswick by more than $100 million over the next year -- effectively erasing tax increases imposed in his government's first budget two years ago.
"We will lower taxes and position New Brunswick as having one of the most competitive tax regimes in Canada, and indeed in North America," Shawn Graham said Thursday evening as he delivered his annual State of the Province address in Fredericton.
Exact details of the tax changes will have to wait until Finance Minister Victor Boudreau brings down his budget March 17.
"What I can tell you tonight is that in the first year alone our plan will contain a total tax reduction valued at well over $100 million," he told a business audience at the University of New Brunswick in a speech broadcast live on television across the province.
Graham's government was widely criticized after introducing tax increases in 2007, which were expected to raise at least $102 million for the province.
The Liberal's 2007-08 budget included an increase in the tax rate for small business, and the first personal income tax hike in 13 years.
The premier says he now wants to reverse that.
"We want to lower personal income taxes for New Brunswickers and reduce the corporate tax burden on companies that do business in our province," he said.
"In addition, we want to attract ex-pat New Brunswickers back home to be with their families and friends, by creating a more competitive business environment and lowering the tax burden on people living here."
The finance minister has already stated the province will face a deficit in 2009-10.
Boudreau also announced $1.2 billion in capital spending over the next two years in an effort to stimulate the economy during the current economic crisis.
The tax-reduction promise came midway through Graham's speech, which focused on reviewing his government's accomplishments since coming to power late in 2006.
Graham said he is still committed to reducing his province's reliance on financial transfers from Ottawa by 2026.
He also said providing leadership through the economic crisis will be his government's top priority.
Graham announced that New Brunswick based Barrett Xplore Inc. has been chosen to deliver high-speed Internet access to the roughly 10 per cent of residents who don't have the service.
The promise to extend high-speed Internet service became a key issue during a recent byelection in a rural riding near Fredericton.
And Graham announced the locations for the head offices of the anglophone and francophone community college systems, which are to become autonomous from the government in April 2010.
The anglophone system will have its head office in Fredericton, while the francophone system will be headquartered in Bathurst.
