KELOWNA: The Canadian Taxpayers Federation (CTF) presented recommendations to the 2008 Budget Consultation panel today calling for a legislated debt reduction plan, the establishment of a public tax review committee, elimination of all corporate welfare schemes, reform in health care and education, a more streamlined public sector, and competition in three sectors currently dominated by government monopolies.

"The CTF's number one priority is for the government to get serious about debt reduction by legislating a debt reduction plan," said Maureen Bader, BC Director of the CTF. "Multi-billion dollar surpluses have allowed the government to engage in debt reduction by accident, but that's no longer good enough; we need debt reduction by design."

The CTF report, Back to Basics, recommends a comprehensive public review of corporate and personal income taxes with the aim of streamlining and simplifying the tax code to reduce administrative costs and enhance compliance and competitiveness.

The CTF also recommends the Liberal government end corporate welfare by eliminating all subsidies and targeted tax cuts to businesses and industries. Although subsidy programs channeling funds to individual businesses were commendably eliminated in 2002, today we see funds channeled to industries such as tourism and the arts. More significantly, targeted tax cuts have replaced direct subsidies as a way to channel taxpayers' dollars to profit-making enterprises.

"Governments have yet to come up with a spending program more wasteful than corporate welfare," continued Bader. "Let's face it, governments aren't good at picking winners, but losers are good at picking governments."

Recommended reforms in a wide variety of sectors are designed to increase consumer choice and reduce government spending. Poor outcomes in health and education, the two areas of greatest spending, indicate the greatest need of reform. Other recommendations include a public sector reorganization, no new Olympic funding and provincial crown agency reform.

"Today, the government is increasingly sidetracked by politically motivated spending increases, a reliance on debt reduction by accident, and back-door corporate welfare schemes," said Bader. "The focus on balanced budgets and lower taxes took B.C.'s economy off the equalization dole put it back on track. A back-to-basics budget will help B.C. continue on its current path of economic growth and development."

For a complete copy of the report click here

For a summary of key recommendations click here.