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February 27, 2013

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.

Colin Busby
Colin Busby

Colin Busby was awarded the 2007 C.D. Howe Research Fellowship and joined the Institute as an analyst thereafter. While writing broadly on economic issues, his emphasis is on fiscal and social policy. Appointed Associate Director of Research in 2016, Colin focuses his attention on the Institute’s healthcare policy and human capital research.

William B.P. Robson
William Robson

Bill Robson took office as CEO of the C.D. Howe Institute in July 2006, after serving as the Institute’s Senior Vice President since 2003 and Director of Research from 2000 to 2003. He has written more than 240 monographs, articles, chapters and books on such subjects as government budgets, pensions, healthcare financing, inflation and currency issues.