The Conservative government likes to trumpet its “low tax plan for jobs and growth” puts money back into the pockets of consumers, but the financial state of many provinces, according to BMO Nesbitt Burns, is putting a dent in some of the federal government’s efforts.
“Most of what Ottawa will be returning to one taxpayers’ pocket, the provinces will take out of the other,” wrote Robert Kavic, a senior economist with BMO, in a recent note.
“All told,” Kavic wrote, “while Ottawa’s package of tax cuts/benefit increases will come in at around $4.5 billion in FY15/16, it looks like the provinces will take back about three-quarters of it.”
Kavic said the net tax/fee increases for the 2015-2016 fiscal year have already hit more than $2 billion.
Last week both Alberta and Quebec tabled their provincial budgets. The LiberalRead More »from Austerity provincial budgets to claw back most of Ottawa’s tax breaks: BMO