MONTREAL- No one knows when Quebec's next election will be held, but Parti Quebecois leader Pauline Marois unveiled a new tax plan on Wednesday that she hopes will be a strong vote winner for her party.
Calling for "economic justice" if the PQ is elected to form the next government, Marois said she will eliminate the province's health tax. Introduced by the Charest government in 2010, the new tax costs each Quebec adult $200.
"We think it is important to reduce taxes for the middle class and for families and that is what we will do," said Marois. "That is $400 in the pockets of each family, they will consume more and that will help the economy,"
Facing a sales tax increase, increased Hydro rates and a higher gas tax, Marois called for relief for the middle class. The PQ leader would increase rates for Quebec's top four per cent of taxpayers: those making $130,000 or more.
Abolishing the health tax would leave a $950 million hole in Quebec's budget.
People earning $130,000 or more would see their income tax increase by four percent, those making $250,000 or more would see a seven per cent increase.
"What Madame Marois is proposing is basically increasing the income tax for a small number of people from 48 per cent marginal tax to 55 per cent," said Quebec Finance Minister Raymond Bachand.
"From the person who basically abolished family allowances, she is doing what all economists tell us not to do: don't touch the income tax, go to consumption taxes."
With the next Liberal budget due in March, Bachand said that Quebec has Canada's most progressive tax system to fund its health care.
