Tax Freedom Day: New Brunswick finishes second

NB taxpayers spent 154 days working for the government this year

According to the Fraser Institute’s annual Tax Freedom Day calculations, New Brunswick finished a solid second this year (June 3rd) behind only "tax friendly" Alberta (and exactly 11 days earlier then the previous two years). Though it is a much earlier date this year, I wouldn't advise any of you to break open the Dom Perignon just yet as NBers are still working just under half the year for the government. Not exactly economic freedom for working class folks, now is it?

Anyway, I think this drastic improvement from last year is due, in most part, to the aggressive personal income tax reforms implemented by the Conservative government in Ottawa, not mention, an additional 1 per cent cut to the GST. Both of which had a modest, if not, significant effect on the annual take home pay and savings of many middle class families in New Brunswick. However, if you're an Atlantic Canadian, an earlier date can also be attributed to increased transfer payments, not provincial or local tax policy:

The Atlantic Provinces historically have had some of the country’s earliest Tax Freedom Days in part because a large share of their total revenue is transferred from other provinces through the federal government’s equalization payments. Tax Freedom Day in those provinces, as well as in Manitoba and Quebec, comes earlier than it would without these transfers.

The only losers? Those who made over $52,700 as provincial reforms by the Graham government resulted in higher income taxes for those falling in the third bracket. Too bad, because we could have edged our way into May if it were not for the March 2007 Boudreau tax hikes.

So, how do we improve our tax environment? We can start by putting a two year freeze on all public sector spending (with the exception of health care) while reversing the tax increases from the March 2007 Budget. Then, and only then, will we be ready to implement what I call "the economic decider", the growth-friendly 10 percent flat tax (a tax Alberta has had in their repertoire for quite sometime now).

Other than that, if Boudreau decides to keep the line on high personal taxes, nothing will change, and in the end, we will continue to work half the year, and maybe even more, for the "man". How sad.

In the meantime, I'm with National Post columnist Jonathan Chevreau when he said, "I find the idea of getting up in the morning and toiling away all day just to remit the fruits of that labor to three levels of Government too depressing. Instead, I choose to believe that each morning I work for governments, and each afternoon I work for myself. The effect is the same, but it feels much better."

Related: Canadian tax freedom day is Saturday, four days ahead of 2007: Fraser Institute, Finally free of taxes, for now, Now we're working just under half the time for Governments, Tax Freedom Day Comes Four Days Earlier for Canadians in 2008, Tax Freedom Day comes early this year, Canada approaches 'Tax Freedom Day', 'Happy Tax Freedom Day' from Voice of the Association.

If you're bored (and have time):The Flat Tax, Want a Flat Tax That Might Work? Try (Gulp) Russia, Critical Issues Bulletins, Flat Tax Folly.