• CTF says Finance Minister's tax cut musings are "categorically disingenuous" in the aftermath of historic spending spree budget
  
• Budget figures reveal Canada's tax burden is still to high
  
• Taxpayers challenge Manley to raise Basic Personal Exemption to $15,000 over five years - calling it the next "bracket creep" battle

OTTAWA: The Canadian Taxpayers Federation (CTF) has reacted to news that federal Finance Minister John Manley is now focusing on reducing Canada's tax burden to levels below those paid by our American neighbours. Mr. Manley's comments were made before a business audience yesterday in Toronto as the Finance Minister jets across the country to sell his budget.

Finance Minister's comments "disingenuous"
" Minister Manley's comments cannot be interpreted as anything but categorically disingenuous after Tuesday's record breaking spending spree, also known as Budget 2003," stated CTF federal director Walter Robinson. "If Mr. Manley believes our tax levels are too high then the logical question follows: Why did he squander his golden moment on Tuesday do something about them The Finance Minister has some explaining to do."

Canada's tax levels: The real story

The CTF pointed out the following facts drawn from Tuesday's budget:

• In 1993, federal personal income tax collections represented 6.9% of GDP, today they represent 7.4%;
  
• In 1993, federal personal income tax collections accounted for 42.3% of total federal revenues, today they account for 47.1% of all federal revenues; and
  
• Even though EI premiums will decrease in 2004, the total payroll tax burden is up 40% in a dozen years.

The next bracket creep: Stop taxing poor Canadians
" If the Finance Minister is serious about cutting taxes he should take up our challenge to raise Canada's basic personal exemption (BPE) from its paltry level of $7,756 to $15,000 over five years along with an equivalent increase in the spousal exemption," concluded Robinson. "This would permanently remove 2.1 million Canadians from the income tax rolls. It represents the perfect marriage of great social policy and good fiscal policy. In effect, this is the next bracket creep battle and we are prepared to lead the charge."