FREDERICTON ? New Brunswick?s premier is musing about the possibility of holding a referendum on increasing its sales tax before the next election, an idea that analysts say would come with huge political risks.
When David Alward?s Progressive Conservative party won the 2010 provincial election, they promised a plan to stabilize the province?s finances without raising taxes or cutting services. Despite spending cuts, the government faces a worsening financial picture, including a deficit for 2012-13 that has more than doubled to at least $411 million.
That?s led to the possibility of raising the harmonized sales tax, something Alward would need voters to approve under New Brunswick?s Taxpayer Protection Act, which requires an election mandate or a referendum victory for the [...]
Source: http://www.ipolitics.ca/2013/02/24/tax-referendum-would-be-risky-pundits-2/
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