-- CTF Applauds Tax Cut Theme But Questions Omission of Ending Bracket Creep --

SASKATOON: The Canadian Taxpayers Federation (CTF) today reacted to the recommendations contained in the House of Commons Finance Committee pre-budget report, Budget 2000: New Era - New Plan tabled in Parliament today.

"We applaud the Committee for the general direction and tone of its recommendations when it comes to tax relief," stated CTF federal director Walter Robinson. "However, we are perplexed that the Finance Committee has abandoned its calls to end 'bracket creep.' In its previous two reports, the Committee has been most eloquent on the need to re-index the tax system to inflation."

Robinson added, "this must just be an innocent oversight. We anxiously await the tabling of an addendum to correct this mistake and inclusion of a recommendation to re-index the tax system to inflation." Mr. Robinson noted that almost every major group (from taxpayers to businesses to unions) that pressed for tax relief during the pre-budget consultations recommended re-indexation of the tax system to put an end to 'bracket creep.'

"An unprecedented national consensus emerged day after day and night after night during the committee's cross-country deliberations. Time and again, the committee was told that bracket creep has got to go," stressed Robinson. "I hope and pray that this is simply a case of lost notes or accidental deletion during the drafting of this report as opposed to a deliberate omission."

The CTF also pointed out that federal government plans to index program spending to inflation.

Page 81 of the November 2nd Economic Statement notes that "direct program spending - is assumed to grow in line with the growth in population and inflation."

"To index spending to inflation but not the tax system in the same manner is wrong," said Robinson.

"Ending bracket creep continues to be our number one priority for tax relief and our national billboard campaign, launched yesterday, continues to generate thousands of electronic signatures in our 'Billion Byte March' for tax cuts," concluded Robinson. "Ending bracket creep represents the ideal intersection of great fiscal and good social policy. This is a message we will continue to convey directly to the Finance Minister right up until budget day next February."