This column first appeared in the Telegraph-Journal.

By Renaud Brossard, Interim Atlantic Director, Canadian Taxpayers Federation

You’d think New Brunswickers had taken a big enough financial hit from the current pandemic and global recession without getting saddled with a tax hike. And yet, that’s exactly what’s awaiting more than 100,000 New-Brunswick families if Premier Blaine Higgs’s government follows through on some of its plans for municipal reform.

In the speech from the throne earlier this month, the government unveiled its plans to get rid of what’s called the permanent assessment gap exemption. This measure, introduced under David Alward’s government, aimed to protect taxpayers against rapid tax hikes associated with fast-rising home values earlier in the decade.

When it was first introduced in late 2012, two ministers were tag-teaming to defend it during question period: then-minister of finance Blaine Higgs and then-minister of local government Bruce Fitch.

Those two are still in government today, the first serving as premier and the second as minister for tourism.

When they defended it, it was never pitched as a temporary measure or something that would be removed down the road.

Instead, Minister Fitch at the time promised that New Brunswickers could enjoy the savings as long as they owned a home.

New Brunswickers believed them then and didn’t see or hear anything during the last election that could make them suspect they’d go back on their word.

This isn’t just about some promise of old by current political leaders. It’s a matter of economics.

According to the provincial government’s own figures, removing this protection would lead to property tax hikes averaging $100 for more than 100,000 New Brunswick homeowners, on top of whatever hikes they would have gotten through their property assessments or their local governments.

Tax hikes are always painful for families, but they are twice as harmful during times of economic uncertainty such as now.

According to the latest estimates from the economists working at the Royal Bank of Canada, New Brunswick’s economy is projected to contract by 4.5 per cent this year. While this is certainly a better outlook than Canada as a whole, it still represents a roughly $1.5-billion economic hit for the province.

Introducing a tax hike at a time like this will only make that hit worse by taking more money out of families’ pockets, thus reducing their ability support local businesses.

And while the government is right about the need to make local government budgets sustainable again, that shouldn’t come at the expense of the province’s economic well-being and that of its citizens.

It’s important to note New Brunswickers didn’t already benefit from a large disposable income. Once the federal, provincial and municipal tax collectors have taken their dues, the average person living in New Brunswick is left with about 10 per cent less in their pockets than the average Canadian.

At a time like this, removing money from the local economy through tax hikes and reducing disposable incomes even further will only slow down the province’s economic recovery, which will negatively impact individual New Brunswickers, local businesses, and all government revenues for years to come.

The current recovery will be a long and hard enough process without a tax hike to slow it down. Out of respect for its past promises and out of necessity for the current recovery, the Higgs government needs to keep the Permanent Assessment Gap Exemption in place.