This is a guest post from Progressive Conservative Association of Nova Scotia
(Member since 2015)
Responsible spending. Accountable government. An environment that fosters entrepreneurship.
These are things that we all hope for in government. In fact, they are the very reasons why I left a 20-year business career that has taken me from doing financial statement audits in Bedford, to venture capital in Bermuda and ultimately, to small business ownership in Pictou County and pursuing politics.
Well, that history and a sense of anger at the level of taxes we pay for less and less in the way of government services (health care being exhibit A). I got into politics because I couldn’t stand back and watch our quality of life steadily decline.
Nova Scotia can be a place where businesses thrive but we have to be honest about where we are, and then force the conversation towards ideas that build on our natural competitive advantages to foster growth that not only keeps people at home, but brings others back — like me.
Where can we start? Taxes.
Our taxes are too high. Sadly, too many people are too afraid to talk about it. Imagine if Nova Scotia became the first jurisdiction to reward growing companies. That would be the opposite of what government usually does. Too often governments prop up struggling companies in struggling industries.
Here’s an idea: allow individual companies to grow their way into their own effective tax rate (until they get to a reasonable provincial, corporate rate).
How would it work? What about capping the nominal amount of provincial corporate taxes paid at the dollar amount paid in the prior year. Growing companies that earn more money this year would still pay what they paid last year. This would lower their own, unique effective tax rate and reward them for their growth.
Ideas like this don’t make for the quick political soundbites that political
communication teams love, and in fact actually open politicians up to easy attacks. But the discussion surrounding lower taxes is an important one that must extend beyond one election cycle.
Would it work? You tell me. Would existing corporations move additional operations here — warehousing, manufacturing — if they knew that could earn incremental income here tax free?
I think they would, but I also accept that I don’t know what I don’t know —
so I need your feedback.
The reality is that with one of the lowest per capita GDP’s in the country, it’s time for serious ideas and discussions. Our corporate taxes are too high. Our high personal income tax rates are offensive. And the small business tax changes taking effect will hurt many this year.
We all feel the sting of higher taxes, maybe in higher prices or maybe in another family doctor or specialist leaving our province. The impacts are real.
Government must promote entrepreneurship and spend tax dollars as if they are their own. There is so much that can be done, but it all comes back to being responsible, accountable, transparent and respectful in every decision
Lowering our corporate taxes would see companies move more operations here. That would mean more warehouses and put simply, more economic activity and jobs.
My name is Tim Houston. Challenge me. Encourage me.
I’m ready.
Are you?
Tim Houston is MLA for Pictou East, Leader of the N.S. Progressive Conservative Party and a member of the Halifax Chamber of Commerce.
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