(20) NDP Government let Poverty happen why?

http://www.peoplestandup.ca/

N.S. budget makes HST highest in Canada
Nova Scotia's NDP government has kicked off a four-year deficit-busting plan by increasing the harmonized sales tax — making it the highest combined provincial and federal tax rate in the country.

Finance Minister Graham Steele unveiled his $9-billion deficit budget on Tuesday, calling it a "smart, strategic and steady" plan necessary to tackle a painful financial outlook.

The NDP expects to end 2009-10 with a deficit of $488 million. This coming year, it expects to finish $222 million in the red.

"We wish the legacy of unsustainable spending we have inherited didn't exist, but it does," said Steele. "It is our responsibility to deal with it — to clean up the mess — so that Nova Scotia's future is not compromised. Doing nothing is not an option."

The plan pivots around a hike in the HST, to 15 per cent from 13 per cent.

Despite warnings from businesses, the NDP is raising the provincial portion by two percentage points as of July 1. The government expects this will mean $214.8 million in much-needed revenue this year.

This tax hike will apply to everything except children's clothing and footwear, diapers and feminine hygiene products.

That means a tax increase of around $412 for about 128,000 households in the province with incomes between $30,000 and $60,000, provided they don't make big purchases like houses or cars.

The rebate on home energy remains.
Tax breaks for seniors

Personal income tax is going up for anyone who earns more than $150,000 a year, to 21 per cent from 17.5 per cent, but seniors and low-income Nova Scotians are getting a break.

There's a new rebate for people making less than $30,000 — about one-quarter of Nova Scotians. Under the Nova Scotia affordable living tax credit, they'll get $240 a year in quarterly instalments, plus $57 for each child younger than 19 living at home.

In addition, about 15,000 will get a poverty-reduction tax credit of $200, and an estimated 18,000 seniors who receive the guaranteed income supplement will no longer have to pay provincial income tax.
Budget 2010-11 highlights: * Projected deficit of $222 million. * HST rises to 15%, as of July 1. * Rebates for people making less than $30,000. * New tax bracket for earners of $150,000 or more. * 1,000 civil servant jobs gone over four years. * Debt climbs to $14 billion. * No balanced budget until 2013.

The NDP also promises to keep costs under control. Program expenses are down $94 million — or about 1.2 per cent — from the last fiscal year, and the government plans to cut spending by $772 million by 2013.

One of the biggest changes this year will be the elimination of full indexing for pensions, which will affect 31,000 members of Nova Scotia's public sector pension plan.

Steele said this move will save the province about $100 million this year.

"I think this is a major accomplishment," he said.