VICTORIA: The BC division of the Canadian Taxpayers Federation today submitted recommendations for the 2001 provincial budget to the Standing Committee on Finance and Government Services.
"Over the last decade, the provincial government has continually rewarded the public sector with wage increases while private sector wage growth stalled, " said CTF BC director Mark Milke. "It is time for taxpayers in both the private and public sectors to receive a wage increase - through a cut to their provincial taxes."
Highlights from the submission:
Cut personal income taxes by $605 million in the 2001 budget year. The provincial basic personal exemption should be raised to $11,000. This will save taxpayers $450 million per year. The top marginal rate should be dropped from 48.7 percent to 46.3 percent. This will save taxpayers $155 million per year.
Establish committees to recommend comprehensive income and business tax reductions for subsequent years.
Freeze overall government spending for two years with the exception of health care spending, increases in which should come from redirecting existing spending. The goal is to have an overall balanced budget, health care funding increases, and tax relief. This assumes a redirection of existing spending priorities.
If the second quarter update indicates an overall surplus (one not limited just to the Summary Accounts), surplus dollars should be applied to the provincial debt.
End business subsidies in practice and in legislation.
End special interest subsidies in practice and in legislation.
Income-test all government and Crown corporation benefit and subsidy programs.
Cut and combine several provincial ministries.
Introduce a Ministry of Privatization & Competition with a five-year mandate.
Increase funding for the Office of the Auditor General. Increase performance and value-for-money audits. Require point-by-point responses from ministries.
Include capital expenditures in the balanced budget legislation and introduce debt repayment requirements into the legislation. Require all future tax increase be subject to voter approval - a Taxpayer Protection Act.