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Opposition, labour group call for tax reform in N.S. amid rising cost of living

The Nova Scotia Liberals and a major labour group are calling for tax reform so that workers can keep more money in their pockets as they struggle with the rising cost of living.

The party and an Independent member of legislature have each introduced bills to automatically adjust provincial income tax brackets to annual inflation.

Tax-bracket indexing ensures that pay raises equal to the annual rise in the cost of living don’t bump taxpayers into higher income tax brackets.

Indexing is in place at the federal level and in every province except Nova Scotia and Prince Edward Island.

Premier Tim Houston, however, is rejecting those calls, saying there will be no major tax reform until health care is “fixed.”

Danny Cavanagh, president of the Nova Scotia Federation of Labour, says he is in favour of tax indexing because low- and middle-income workers are struggling with the rising cost of food, fuel and housing.

Cavanagh says, however, that indexing should be an interim measure and that Nova Scotia is due for significant tax reform that would place a higher tax burden on the wealthiest.