Unemployment in the province won’t get any better if the provincial government cuts spending in an effort to reduce the burgeoning deficit which has doubled from the previous estimate. In fact, it will continue to rise.
That warning from U-N-B Economics Professor Rod Hill who tells CHSJ News the Conservatives have backed themselves into a corner by their refusal to raise taxes and there must be a discussion about increasing government revenues.
Hill argues there is no evidence to suggest the tax cuts implemented in 2008 by the previous Liberal Government stimulated economic activity and the provincial government lost more than 730 million dollars in much needed revenue but the Canadian Taxpayers Federation warns it would be a mistake to raise taxes at this point.
