A 2 per cent hike in the HST isn’t necessary according to Kevin Lacey of the Canadian Taxpayers Federation.
He claims the Gallant government didn’t need to do it now saying it will make it tough for famillies and make job creation more difficult.
Lacey says the HST rebate will help if you have a family income of up to $40,000 a year but after that, famillies will get hit with a tax increase of about $440 dollars a year thanks to the HST increase.
The Retail Council of Canada is also concerned about the 2-percent increase in the HST for New Brunswick.
Atlantic Director Jim Cormier says the double whammy of an HST hike, on top of increased corporate tax rates is bad for business. He says over the last few years, He’s been concerned over the changes that have transformed New Brunswick from a business friendly province to one with higher taxes.
Cormier says increasing the HST erases the competitive tax advantages businesses in New Brunswick have with their neighbours.