Newfoundland and Labrador face a $65 billion fiscal burden – the future tax bill for increased healthcare costs over the next half-century – and should prepare now for the coming demographic squeeze, says a report released today from the C.D. Howe Institute. In “Managing Healthcare for an Aging Population: Are Demographics a Fiscal Iceberg for Newfoundland and Labrador?,” authors William B.P. Robson, Colin Busby and Aaron Jacobs find that the province faces a liability related to demographically sensitive programs that is larger than the provincial GDP, raising the prospect of the province doubling the share of provincial income it collects as taxes.
January 8, 2015