The latest MLA spending scandal in Nova Scotia is "infuriating" because it shows provincial politicians are overspending at a time when provincial taxes are high and could go higher, says the Canadian Federation of Independent Business.

Nova Scotia already has one of the highest tax rates in the country, and is now considering an increase in the harmonized sales tax, Judith Andrew, acting executive director for the federation in Nova Scotia, said Monday.

The recent MLA expense account scandal is the just the icing on the cake, she said.

"It's just infuriating — the misspending, the high taxation and the threat of just more of the same," Andrew said.

Nova Scotia Auditor General Jacques Lapointe launched a forensic investigation Friday to look into possible irregularities in expense account spending by more than one MLA.

That comes in the wake of his annual report which slammed the province's expense system, saying several politicians had filed "excessive and unreasonable" claims, in part because of inadequate spending controls.

In his 142-page report, Lapointe concluded inappropriate claims were made by some politicians for personal items, including former Yarmouth Tory MLA Richard Hurlburt who claimed nearly $8,000 for a generator installed in his garage.

A brochure released by the federation Monday — called Nova Scotia's List of Shame — says Nova Scotia has among the highest rates in Canada for personal, corporate, property and gas taxes.

The federation also looked at the increases to MLA salary and expense allowances between 1998 and 2009. They found that salaries and constituency expenses more than doubled in the 10-year period.

"It signifies an attitude of entitlement," Andrew said.

What really rankles, she said, is the recent round of meetings being held around the province by Finance Minister Graham Steele who is talking about addressing the province's $590-million deficit for 2009-10 through a possible increase in the HST.

"There's no more room for tax increases - relief is really what's needed," Andrew said. "And yet we have the finance minister going around the province trying to sleepwalk us into having another tax increase so they can continue to finance this largesse."

The federation has set up a website urging Nova Scotians to go to the finance meetings to deliver a message of tax relief and spending restraint.