Relief For Northerners First: Why Personal Income Tax Relief (Not Payroll) Is The Right Move

The cost of living is high and northerners are looking for relief.

There are a lot of proposals on the table this election. Let’s look at one of mine and contrast it with another. 

A personal income tax reduction for northern workers

I’m proposing a 2% reduction for in territorial personal income tax for all northerners in the first three tax brackets (up to $147,826 in 2022).

This will put about $1.5 million back in northerners’ pockets (more than 1000 bucks a year for the median worker making around 60k a year). 

As we face a cost-of-living crisis, higher mortgage rates, and higher childcare costs, it’s time to use the levers we have to give the northerners who need it most a hand.

Supporting Local Growth

This approach to tax relief helps northerners first.

When Northerners have more money in their pockets, they are likely to spend more within the community.

That could lead to more local spending which benefits local businesses - including the many in Yellowknife Centre which could use the extra spending.

This would help improve conditions for both businesses and people, and be a selling point for people thinking of calling the north home – all of which could help offset lost revenue.

Eliminating the payroll tax: a handout for non-resident workers

Contrast this with a proposal to eliminate the payroll tax.

The payroll tax deducts 2% from all workers’ paycheques.  

The reason it’s important is it’s the single way we collect revenues from out-of-territory workers.

These workers play a critical role in our economy. This will remain a reality for the foreseeable future.

These folks don’t pay personal income tax here – their money mostly heads south.  

These workers benefit from the good wages and jobs here. We should capture some benefit to help invest in our future, too.

Choose action, not lip service on November 14

Choose relief that benefits northerners first, not a handout for non-resident workers.