Premier Shawn Graham is hoping New Brunswickers will begin pumping their newfound tax savings into provincial businesses.
Graham used a luncheon speech in front of the Moncton Rotary Club and Greater Moncton Chamber of Commerce on Monday to highlight the province's tax cuts, which come into force on Wednesday.
When the tax cuts kick in, a person who earns $25,000 a year will save $4 a week and someone who makes $50,000 will save $14 a week. Those figures will more than triple by 2012 under the Liberal government's tax plan released in the March budget.
Graham said he hopes people will start spending their tax savings, especially on products made by local businesses.
"I want you to think about what you can do with those tax savings as you leave this room today, because Christmas is fast approaching," he said.
New Brunswick will have two tax brackets once the tax cut plan is fully implemented in 2012. People earning less than $37,893 will be taxed at a rate of nine per cent, while those earning more will be subject to an income tax rate of 12 per cent.
Graham champions corporate tax cuts
Graham told the business audience that tax cuts will be instrumental to the province's economic prosperity.
The general corporate tax rate will be cut to 12 per cent from 13 per cent in 2009.
He was not shy about comparing the province's tax regime with Nova Scotia's. Graham explained to the business crowd that staying in New Brunswick will save them a lot of money.
"Nova Scotia will have a corporate tax rate of 16 per cent. New Brunswick, once fully implemented by 2012, will have a corporate tax rate of eight per cent, half of the province of Nova Scotia, which will put us in the driver's seat for economic development here in Atlantic Canada and across the country," Graham said.
Bill Dixon, a vice-chairman of the Greater Moncton Chamber of Commerce, said the tax cuts will be well received by many businesses in the Moncton area.
"We regularly poll our members. The number 1 item is the taxation burden," Dixon said.
While tax cuts are great, Dixon said his group still wants more government spending on schools, roads, hospitals and bridges.