-- CTF Blasts Subsidy and Tax Ideas as "Ludicrous" and "Absurd" --

OTTAWA: The Canadian Taxpayers Federation (CTF) today angrily denounced reports that the House of Commons Heritage subcommittee on Sports is proposing various subsidy arrangements and tax harmonization protocols for professional sports and athletes.

According to a report in this morning's Ottawa Citizen, the Commons committee, Chaired by MP Dennis Mills, is recommending various initiatives including:

A "temporary" sports subsidy fund which would grant up to $5 million per year per team to NHL hockey franchises (and other sports franchises) which meet certain employment requirements; A Canada-U.S. reciprocal agreement for tax harmonization for sports professionals; Tax breaks of up to 150% for corporate sports sponsorship.

"These ideas are utterly ludicrous and absurd," stated CTF federal director Walter Robinson. "Professional sports is just one of many industries that is suffering because of Canada's high and punitive tax rates. Our politicians should look at dramatically lowering business and personal tax rates as a way of leveling the playing field with the U.S. for the benefit of hundreds of Canadian industries, including our beloved sports teams."

Canadians suffer under the highest personal income tax burden amongst our G-7 economic partners and Canadians businesses pay an average of 20% to 30% more in business income taxes than their American counterparts depending upon the industry in question.

"The last thing we need is more corporate welfare for any industry. As much as we all love professional sports, the answer to its competitive woes is not for taxpayers to bail out private businesses," added Robinson. "Right now, Paul Martin is thinking about expropriating the $6 billion EI surplus from Canadian workers and employers because he has said that he needs the money. If we're that broke then he has no choice but to immediately dismiss any notion of bailing out sports teams and tell Mr. Mils to stick his committee's report in the shredder. And the sooner, the better!"

The CTF acknowledges that generous levels of taxpayer support and incentives given to American sports franchises places Canadian teams at a competitive disadvantage. "The Commons committee heard from lawyers that stated such American subsidies were in violation of NAFTA. Fighting for fairness through our trade agreements is the proper role for the Canadian government, fleecing taxpayers for sports subsidies is way offside. Our MPs deserve a game misconduct for even thinking they have the right to scrimmage with taxpayers' money,"concluded Robinson.