The Canadian Taxpayers Federation is calling on Nova Scotia Premier Tim Houston to support legislation introduced by an opposition Liberal MLA that would index provincial income tax brackets to inflation.

“With inflation sky-high and the cost-of-living soaring, there’s never been a more important time to end bracket creep and stop the government from profiting off of inflation at taxpayers’ expense,” said CTF interim Atlantic Director Jay Goldberg. “The Nova Scotia Liberal Party has introduced a motion in the Legislature to index income tax brackets to inflation and the Houston government should support it.” 

Bracket creep occurs when governments don’t move tax brackets with inflation and inflation sends taxpayers into higher tax brackets even if they can’t actually afford to buy more.

Houston has rejected recent calls to end bracket creep.

“Houston is completely out of touch in opposing tax reform,” said Goldberg. “Families can’t afford massive tax hikes so that Houston can refuse to keep government spending in check.”

Nova Scotia and Prince Edward Island are the only two provinces in Canada that fail to index income tax brackets to inflation. Failing to do so costs taxpayers in both provinces hundreds of dollars a year.

“Because the Houston government has decided to keep profiting off of bracket creep, Nova Scotia taxpayers will pay anywhere from $175 to $653 more in income tax this year alone,” said Goldberg. “This is a tax hike by stealth and it’s time for Houston to put an end to it.”