CTF Pre-budget Submission

VICTORIA: The Canadian Taxpayers Federation (CTF) released its 2006 Provincial Budget Report today, recommending legislating debt retirement, streamlining the income tax system and targeting tracking of discretionary spending measures.

"BC is at the crossroads today. The economy is growing, jobless rates are down but there is still much work to be done. Our gross domestic product per capita ranks fourth among the provinces and government coffers have swelled largely due to volatile sources like natural resource prices and federal transfers. The province is in the black and is expected to remain there, but for BC to sustain its growth rates the government must make some bold decisions," said Sara MacIntyre, BC director for the CTF.

"The government contends its managing the debt load, yet our net liabilities continue to increase. The government should stop talking about managing the debt and start taking action to retire the debt. Premier Campbell's legacy could be the initiation of a debt-free BC-not unlike what Ralph Klein achieved in Alberta. This is the legacy Campbell should be investing in-a debt free BC," added MacIntyre.

The CTF proposes in its report, a legislated debt retirement plan that would mandate, at minimum, an annual net debt reduction equivalent to 2.5 per cent own source revenue. According to figures from September's Budget Update, that works out to a $721 million net debt reduction down to $34.75 billion for this year.

"The CTF also recommends a three pronged approach to make BC's income taxes simpler, lower and flatter. First, eliminate the top two marginal tax rates, second increase the basic personal exemption to $15,000 and finally, eliminate the myriad of tax credits, deductions and exemptions from both personal corporate taxes. The end goal is for BC to have one single low rate of taxation, to increase the tax base and enhance transparency and accountability in the tax system" MacIntyre concluded.

Other CTF recommendations in the Report titled, "BC at the Crossroads" include:

• Audit at the end of each three year fiscal, explaining forecast deviances;
• Restrain spending increases to the rate of BC's consumer price index.;
• Increased budgets for Ombudsman, Auditor General and Information and Privacy Commissioner;
• An accountability report of the First Nations Relationship Fund;
• An "Olympic Transparency Plan" and VANOC financial reports to the legislature;
• Legislated ban on all non-essential government advertising;
• Repeal the prohibition on the purchase and sale of private medical insurance;
• Choice: real private sector alternatives for auto insurance and liquor sales.