The Canadian Taxpayers Federation is asking the government of Prince Edward Island to adopt resolutions to start the new year on the right foot.

“Many Islanders see this time of year as a turning point to do better and commit to New Year’s resolutions,” said CTF Interim Atlantic Director Renaud Brossard. “That’s exactly what we’re asking from governments – to do better – by adopting these resolutions.”

1 – Put forward a plan to bring the budget back to balance

The government of Prince Edward Island is projecting a $178.1-million deficit for 2020-21. This will bring the province’s debt to nearly $2.5 billion. This is costing taxpayers $128 million per year in interest payments alone.

“The deeper the government goes into debt, the more taxpayers’ cash has to go into covering interest payments instead of services,” said Brossard. “The government needs to put forward a solid plan to get the budget back to balance and start paying down its debt.”

 2 – End bracket creep once and for all

Bracket creep is a tax hike that happens when governments don’t index tax brackets to inflation.

Prince Edward Island hasn’t changed its tax brackets since 2008. Between 2008 and 2019, the purchasing power of a dollar in Prince Edward Island has gone down by 17 per cent.

Prince Edward Island, Nova Scotia and Alberta are the only provinces where taxpayers are subject to bracket creep. Saskatchewan ended bracket creep in its 2020-21 budget.

“A dollar today doesn’t go as far as it did in 2008, and yet the government taxes Islanders as if it did,” said Brossard. “Tax brackets need to keep up with cost of living so taxpayers are not subject to stealthy tax hikes as they currently are.”

3 – Sell off provincially-owned golf courses

Prince Edward Island’s golf course operations have been losing money year after year, costing taxpayers $3.8 million net between 2016 and 2020. This is an average of $760,000 per year.

The average Islander’s personal income tax bill being $2,386, this loss represents the income taxes paid by 1,590 Islanders every single year.

“If you’re running a commercial enterprise like a golf course and keep losing money every single year, it’s time to cut your losses and sell the it to someone who’s better at it,” said Brossard. “The government of Prince Edward Island needs to get out of the golf business and leave it up to local entrepreneurs to turn them around.”