Newfoundland and Labrador scales back ‘deficit levy’ thanks to help from feds – CP

Source: The Canadian Press
May 25, 2016

ST. JOHN’S, N.L. _ The premier of Newfoundland and Labrador says the so-called “deficit reduction levy” will be scaled back, thanks to new funding relief from the federal government.

Dwight Ball says the federal government has deferred the province’s monthly equalization loan repayments until April 2022.

As a result, he says nearly 74 per cent of tax filers in the province will not have to pay the levy – nearly double the original 38 per cent.

The levy will be paid by anyone with a taxable income of more than $50,000, but the amount paid will also change.

Someone with a taxable income of $55,000 will now pay $100 a year, while someone with a taxable income of $100,000 will pay $700.

Newfoundland and Labrador owes $267 million to the federal government under the 2005 equalization repayable floor loan.

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