Charlottetown, PE: The Canadian Taxpayers Federation is applauding the King government for running a surplus in the 2021-22 fiscal year instead of a previously projected deficit.

“Today’s fiscal update is great news for taxpayers,” said CTF Interim Atlantic Director Jay Goldberg. “A balanced budget means less debt, lower interest costs and more room for to lighten the tax burden for Islanders.”

The King government originally projected a deficit of $26.5 million for fiscal year 2021-22, but the province ended the year with a $83.8-million surplus.

The CTF is now calling on the King government to end bracket creep.  Bracket creep happens when governments fail to index income tax brackets to inflation. As a result, inflation pushes taxpayers into higher tax brackets even though they don’t have more money in real terms. The federal government and most provinces index tax brackets; only Nova Scotia and Prince Edward Island continue to raise taxes through bracket creep.

“With a surplus of over $83 million, now is the time for the King government to finally end bracket creep,” said Goldberg. “With sky-high inflation, there’s never been a more urgent time to end the hidden and regressive tax.”