WINNIPEG: The move to an independently-calculated income tax system will rob Manitobans of expected federal tax relief on provincial finances, warned the Canadian Taxpayers Federation.

"Whatever tax relief Ottawa returns to Manitobans in this month's federal budget, the provincial government will claw a part of it back," said Victor Vrsnik, CTF provincial director. "The new policy will cripple Manitoba's standing with other provinces in competitive taxation."

The move from a tax on tax to a tax on income system makes sense if the province links tax brackets and credits to inflation in order to erase the bracket creep tax grab. This year alone, Manitoba will net an extra $113 million in bracket creep taxes. Over the past ten years, the provincial government collected over $800 million in bracket creep taxes.

"Manitobans are twice ripped-off by the new tax system," said Vrsnik. " Not only has the NDP government disregarded the bracket creep tax grab, but now they are raiding from Manitobans the impact of expected federal tax relief."

"NDP ideology is creeping back into its tax policy," noted Vrsnik. "Finance Minister Selinger first raised the phantom of a deficit and now he's raiding federal tax cuts long over due for Manitobans."