-- CTF Reacts to Martin's Conversion to Tax Cuts on the Road to Budget 2000 --

OTTAWA: The Canadian Taxpayers Federation (CTF) today responded to Finance Minister Paul Martin's comments on the need "to bring our taxes down as quickly as possible" as published in the June 28th Canadian edition of Time magazine.

"Mr. Martin's words are encouraging and this is a complete 180 degree turnaround from where he was just a few months ago," said CTF federal director Walter Robinson in reference to Mr. Martin's earlier comments that taxes would be reduced slowly over the next 25 years. "It's clear that Mr. Martin finally understands that there is a national constituency for immediate, broad-based and substantive tax cuts that continues to grow. Hopefully his colleagues are not blind to this reality."

The CTF also commended Mr. Martin for his order of priorities for tax reduction. In the Time article the Finance Minister notes that personal income tax cuts are priority number one, to be followed closely by reductions in capital gains taxes and corporate taxes.

"The challenge for Mr. Martin is not only to bring personal income taxes down, he must re-index income tax brackets to inflation and eliminate the remaining 5% federal surtax," added Robinson. "If he's looking for the roadmap for tax cuts, we'll gladly furnish him with another copy of our 1999, 1998, 1997 or 1996 pre-budget submissions."

However, Robinson also signaled a note of caution in analyzing Mr. Martin's remarks. "We are excited at the prospect of real tax relief for Canadians, but we must be cautious. The federal budget is still eight months away and the Prime Minister has many tax-and-spend friends that want to get their hands on the burgeoning surplus for all sorts of crazy schemes. From pro hockey subsidies to corporate welfare to stupid millennium parties to make-work projects in individual ridings. "

"The road to the Taxpayers Budget in February 2000 is still fraught with many obstacles and spending temptations. Mr. Martin must remain focussed to ensure that, as he said, we get more money into people's pockets. If Mr. Martin is truly serious about this, and not just floating a trial balloon, then we will do everything we can to support him in this endeavour," concluded Robinson.