The decision by Nova Scotia politicians to turn down potential resource revenues from Fracking, means Nova Scotians will experience more of the same: Among other ills, high taxes that could be alleviated by new energy royalties.

How bad are Nova Scotia’s taxes? Consider some examples.
In Nova Scotia, the general corporate tax rate is 16 per cent; that compares with 12 per cent in Saskatchewan and 10 per cent in Alberta. Small businesses pay a three per cent tax in Nova Scotia below a $350,000 threshold. In Alberta and Saskatchewan, the rate is three and two per cent respectively on a $500,000 threshold. Nova Scotia and Saskatchewan impose a four per cent and 3.25 per cent capital tax, respectively, on financial institutions (which pass it on to consumers). Alberta imposes no such tax.

Nova Scotians pay a 10 per cent provincial sales tax (embedded in the HST), compared to five per cent in Saskatchewan and zero in Alberta.

More numbers: The total provincial tax bill for a one-income family with two children and a $35,000 income in Alberta: a $1,128 refund; in Saskatchewan, a $923 bill; and in Nova Scotia, a whopping $4,089 provincial tax hit.

A one-income, two-child family with $75,000 in earnings pays $3,212 in total provincial taxes in Alberta, $5,095 in Saskatchewan, and $10,159 in Nova Scotia.
A two-income, two-child family at $100,000, pays provincial taxes of $5,258 in Alberta, $7,445 in Saskatchewan, and $12,116 in Nova Scotia.

Twenty years ago, governments taxed everything that moved. Some, such as Nova Scotia’s ruling politicians, still do. They’re reinforced in such behaviour by anti-development purists who reject any sensible and safe way of obtaining new revenue. Those foregone royalties and tax receipts could be used to finance government operations or lower taxes. The latter option is a crying need in a high-tax province.

Defensible development is desirable. Centuries ago, Canadians trapped animals to sell fur to the English and Europeans. Now we hawk beef, oil, gas, automobiles, environmental services, financial know-how and high-tech BlackBerrys to countries around the world.
The result? Jobs, incomes and an enviable standard of living.

But when politicians in Nova Scotia opt out of reasonable development options such as fracking for oil or gas, they leave nothing but high personal taxes and few at-home, in-province opportunities. That’s not exactly helpful for Nova Scotians.

Meanwhile we all sit back and moan?