Following this year’s prolonged budget season, the latest APEC Report Cardfeatures its annual post-budget assessment.
The report notes, having returned to balance, the Maritime provinces must now ensure they remain fiscally sustainable as economic growth slows and the population ages over the next few decades. While Newfoundland and Labrador reported a surplus this year, it still has an underlying deficit and is not projected to be back to balance until 2022/2023 and requires sustained expenditure restraint to achieve this goal.
As provinces work to achieve long term fiscal sustainability, they must also ensure their fiscal competitiveness. While many factors determine decisions about where to work and invest, tax rates have an important role. Several firms report the region’s high personal income taxes as being a challenge when seeking to attract Canadian and international workers to the region, requiring companies to offer higher gross salaries to help compensate.
To highlight this issue and assist members, APEC has developed a salary comparison calculator to enable members to calculate the differences in gross income required to compensate for higher income tax rates – available on APEC’s member-only portal.