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Coalition Government Must Not Backtrack on Tax Cuts

Author: Richard Truscott 1999/10/04
What does this new coalition government between the NDP and the Liberals mean for hard-pressed taxpayers It could be bad news for three reasons:

First of all, having a majority in the legislature will reduce pressure on the government to cut taxes. Second, Roy Romanow was very vague during the campaign about his promise of $1,000 in tax cuts. His refusal to sign the Canadian Taxpayers Federation's tax cut pledge may have foreshadowed the watering-down of his tax cut commitments. And third, we now have a coalition government with NDP and Liberal partners who campaigned on different promises. Where does this mixed government stand on tax relief

There has been a lot of talk recently about spending on platform oddities like the "free tuition" program. But the promises of tax relief, so loud during the campaign, has been reduced to a whisper. Taxpayers must hold this new government's feet to the fire for lower taxes.

Just as importantly, the aftermath of this election demonstrates the need for a recall mechanism for provincial politicians. More and more our politicians are brokering back room deals that ignore, or even betray, the people who elected them. We need to put the power back in the hands of the people, and make our politicians more accountable between elections.

Accountability begins with the Premier, who should clarify without delay exactly how the government intends to deliver the tax cuts promised during the campaign. Here are excerpts from an open letter the CTF has sent to the Premier on behalf of the taxpayers of Saskatchewan:

The taxpayers of Saskatchewan want to know how you are going to deliver your election promises on tax relief.

Your election platform promised to cut the tax bill of an average family of four by $1,000 after four years. However, it was exceedingly vague about what taxes would be cut, how they would be cut, when, and by how much.

You missed an opportunity to clarify your platform when you refused to sign our tax cut guarantee pledge. (As you know, the pledge did not seek to commit you to CTF policy, but only asked that you clarify and stand behind your own platform.)

Meaningful tax relief is necessary to fulfil another election promise, to create 30,000 jobs over the next four years. As you know, Saskatchewan has one of the highest tax burdens in Canada, and this discourages private sector job creation. Considering that only 1,700 jobs were created in Saskatchewan in the last year, according to Statistics Canada, job creation on the magnitude you promised requires significant and quick action on tax relief.

If one thing was established by the election, it is that Saskatchewan people voted strongly for change and for reduced taxes, which was the number one issue of the campaign.

The specifics of tax relief may have been missing from the NDP platform, but your basic promise to significantly reduce taxes was very clear. With the election over, Saskatchewan taxpayers deserve to know the specifics, and eagerly await the fulfilment of your promise.

Tax relief should be the top priority of your government.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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