Cranes are highlighted on the Halifax skyline as seen from Dartmouth. Photo by Tim Krochak /The Chronicle HeraldArticle contentWhen Bill Clinton became Arkansas governor in 1979, the state ranked near the bottom of American income measures. His administration pursued education reform, industrial development, and investment attraction, showing that a place accustomed to low expectations need not accept them as its destiny.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentNova Scotia faces its own moment.Article contentArticle contentAfter years of population growth and net in-migration, Nova Scotia has broken with demographic fatalism. Cranes crowd the skyline, and the Tim Houston government has reduced barriers in the skilled trades by ending certification renewals and cutting exam challenge fees.Article contentArticle contentBut population growth alone does not guarantee prosperity.Article contentMore people without higher productivity can strain health care, roads and housing. Recent growth has coincided with a residential construction cycle and strong property activity, even as the province projects a roughly $1.2-billion deficit for 2026-27.Article contentGovernment spending cannot substitute indefinitely for a broader, more productive private economy. Nova Scotia needs a larger private tax base to fund essential services — not deeper debt or a larger state — while investing in productivity and wealth creation.Article contentPast governments too often hand picked corporate winners through grants, loans and subsidies. Such policies reward political access, make firms dependent on public support and leave others with the same tax and regulatory burdens.Article contentGovernment should build the conditions for success — skills, infrastructure, predictable regulation and neutral tax rules — not make firm-by-firm bets. Replace discretionary subsidies with rules that let every firm invest, grow and hire.Article contentArticle contentCut Nova Scotia’s 14 per cent general corporate income tax rate, among Canada’s highest, to nine per cent over three years. Pair each yearly cut with a review of subsidies, administrative overhead and low-value spending, and report publicly on investment, employment and fiscal results. No reduction should be financed by deeper deficits. The province should also ensure its small-business and general corporate rates do not discourage firms from scaling.Article contentThe province must stop making it harder for skilled people to stay, work and invest here. The combined top marginal income tax rate reaches 54 per cent above $258,482 in earnings, while marginal rates exceed 50 per cent above $181,440.Article contentMobile professionals and entrepreneurs can build careers anywhere. A more competitive tax structure would help retain people who create local jobs, investment, and better-paid opportunities.Article contentPair tax competitiveness with strong human capital pipelines. Reducing credential barriers helps workers enter the province faster, but lasting prosperity requires closer links among high schools, community colleges and employers. Expand employer-backed apprenticeships, strengthen vocational education and give students credible paths to skilled, well-paid work.
Opinion: Nova Scotia needs larger private tax base to fund services
