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Their tax rate caused business to leave. Why would you set up a business in the Maritime where you have to pay higher sales tax, corporate tax, payroll tax, capital tax instead of Alberta? Once your party starts giving out handout, they can't stop it or risk losing votes. So they go into deficit spending which they can never get out of. Sooner or later, the Maritime will become if they are not already another Greece.
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Yeah...no.
In the late 80s and early-mid 90s, New Brunswick premier Frank McKenna enacted
very favourable tax rates and other incentives for businesses willing to relocate to the province. He even setup a toll-free number directly to the premier's office specifically for businesses to find out about all the perks his government was offering if they brought jobs to the province. At the same time, he slashed government spending, eliminated the deficit, and balanced the budget. NB became one of the first provinces in the country to be in the black.
Yet this did not stop the steady flow of citizens leaving the province, and while unemployment rates improved, they never approached Alberta levels. Why do you suppose that is? It has nothing to do with running deficits or having business-unfriendly tax regimes.