Newfoundlanders carry a $75 billion fiscal burden, or about $150,000 per person, to pay the higher 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. “Publicly funded healthcare’s claim on Newfoundland’s economic resources has not shown the same upward trend evident elsewhere in Canada, but that will change,” said co-author Colin Busby. “Our projections show the share of demographically sensitive programs, including healthcare, education and other age-based programs, doubling from 12.4 percent of provincial GDP today to 24.5 percent over the next five decades. Meeting these demands from its own resources would require the St. John’s government to raise the tax bite it takes from Newfoundlanders’ incomes by 60 percent,” added Busby.
February 27, 2013