Wealth Taxes Continue in New Brunswick

Seniors, post-secondary grads, and Gramma – all demographics will feel the effects of Liberal Premier Brian Gallant’s Liberal budget, presented  in New Brunswick on Tuesday, March 31.

According to an article by the CBC, “Finance Minister’s Roger Melanson’s budget projects a deficit of $476.8 million that pushes the total net debt to $12.6 billion by March 31, 2016.” Here’s how that shakes out for taxpayers:

For seniors, the financial cap on the cost of nursing home care has been removed for those who are deemed can afford more. The current cap of $113 per day for seniors in nursing home care will be charged to those who can afford it; those who can afford more, will pay $223 per day. Seniors with savings and/or investments will now be considered when determining how much a person can pay. There will also be an increase in the premium in Blue Cross for seniors.

The wealthiest in New Brunswick will pay more tax – that’s often executives, but also widowed Grammas or Grampas too, as income splitting is not possible for last survivors, and the tax that’s attracted on final returns can be prohibitive if proper planning is not done to melt down large RRSP or RRIF balances. 

The news:  those with taxable incomes between $150,000 and $250,000 will be taxed at 21 per cent; those who make more than $250,000 will see their tax rate jump to 25.75 per cent, up from 17.84 per cent.  This positions New Brunswick as the province with the highest marginal tax rate for taxable incomes over $250,000 at a whopping 54.75%!

Other notables:

• Courthouses in three municipalities will be closed as well as seven Service Canada locations.

• The tax on unleaded gasoline will increase by 1.9 cents per litre; 2.3 cents for diesel.

• The post-secondary rebate program, at a maximum of $20,000 for grads who remain in the province to work after graduation, has been cancelled for 2015 and later years.