Thank you, Mr. Speaker. We continue to discuss options for new revenues, and in light of the recovering economy and full scaling up of production at our mines, it is timely, indeed, to be instituting new measures. Through consultations by the Department of Finance, many discussions by the public and comments by several Members, a clear consensus has emerged that more progressive tax measures are needed.
I believe a first priority is to implement a resource income tax to serve us until devolution of responsibilities is achieved. We have the capacity now to implement such a tax in a moderate way and to invest the funds raised into a long-term heritage fund, without any real effect on corporate profitability and investment. A resource income tax is a tax on windfall profits and doesn’t tax those not making profits. Our mineral and fossil fuels are being tapped at increasing rates and they won’t last forever.
Also, we need to take stronger actions to redistribute wealth and bridge the gap between low and high income earners. Lower taxes for the lowest income earners will put money into the economy immediately and improve the lives of those most in need. Very small adjustments at the lowest levels of income earners can achieve this important goal.
Mr. Speaker, we are fully aware of the leakage of tax revenue out of the Territory through workers from out of the Territory and the need to plug it. Three hundred seventy-one million dollars, almost one-fifth of total labour income in 2008, left the Territories last year. Steps such as a payroll tax for high income earners, an airport departure tax, a hotel tax will help decrease revenue leakage. Though Northerners would also end up paying these taxes, people needing assistance would be compensated by the decreased income taxes. Cost of living credits need to more realistically take into account the differences in cost of living between communities. A scaled approach based on our statistics for cost differentials between communities would provide the necessary recognition here.
Finally, this government must wrestle with how the cost to society of greenhouse gas production becomes a cost of doing business. Only this has proven to be an effective incentive to adopt operating measures that reduce greenhouse gas production and, hence, vulnerability to taxes. Accompanying this must be an array of measures...
Mr. Bromley, your time for your Member’s statement has expired.
Thank you, Mr. Speaker. I seek unanimous consent to conclude my statement.
---Unanimous consent granted.
Only recognizing the carbon content of fuels has proven to be an effective incentive to adopt operating measures that reduce greenhouse gas production and enhance vulnerability to taxes. Accompanying this must be an array of measures to assist people and businesses to shift from fossil fuels to the viable proven renewable energy uses that provide enhanced local employment opportunities, lower living costs and reduce harm to our environment.
Mr. Speaker, these measures taken together yield benefits on all fronts. They complement each other and must be advanced together. Some can start at low levels and become fully engaged as our economy revives. Let’s get it done. Mahsi.
Thank you, Mr. Bromley. The honourable Member for Nunakput, Mr. Jacobson.
