Now that the economic statement hoopla has subsided, only one question remains. Will Paul Martin deliver on his tax cut promises Or will the Prime Minister take hold of the reigns and return us to the 1970s with a massive government-shopping spree

Since the Liberals returned to power in 1993, an uneasy entente has existed between these two men at the Cabinet table. But with billions of extra tax dollars pouring into Ottawa - some $95 billion over the next five years -- the differences between Chretien and Martin have surfaced.

At a fundraising dinner in Ottawa, Mr. Chretien solidified his anti-tax cut position by telling those who seek massive relief in the tax burden that Canada is not for them. On the other hand, Mr. Martin has been more conciliatory and respectful of those who wish to see their hard-earned money transferred from Ottawa's coffers back to their own bank accounts.

"Mr. Chairman, for this government, the need for tax relief is not a matter of debate," Martin stated before the House of Commons Finance Committee. "It is not just one option among many. It is not secondary. It is not something to be considered only once the list of spending proposals is exhausted. Tax reduction is essential to secure strong sustained economic growth." Martin went on to say "-there are many reasons for reducing taxes. Most are well known and do not need repeating here. However, there is one I would like to mention because it is too frequently overlooked - it is quite simply that Canadians are entitled to keep more of the money they earn. After all they worked for it. It's theirs."

So where should Mr. Martin begin to cut taxes We believe that our three-part plan for tax cuts fits the bill. To begin, Mr. Martin must re-index the tax system to inflation. This would be the most fundamental change to our tax system in over a decade.

Eliminating "bracket creep" (the non-indexation of tax brackets) represents a legacy initiative that would erase the punitive, mean-spirited and insidious feature in our tax system which penalizes taxpayers whose incomes merely keep pace with inflation.

The OECD estimates that 20% of Canadian taxpayers have been pushed onto the tax rolls or into higher tax brackets due to bracket creep. And CTF calculations reveal that over $10 billion of the $75 billion in personal income taxes that Ottawa collects is courtesy of the decade long effects of bracket creep.

Fully re-indexing the tax system to inflation represents the intersection of good fiscal policy and good social policy. Moreover, such a move would be applauded by a plethora of advocacy groups across the political spectrum. It would be a measure that benefits all taxpayers but a disproportionate and long-overdue olive branch to beleaguered low-income and lower middle-income Canadians.

Second, the5% federal surtax must be eliminated. Deficit surtaxes (3% and 5%) were instituted by the Mulroney government to help eliminate the deficit. The deficit has been vanquished, the 3% surtax eliminated, so why is the 5% surtax still applied to income earners at $65,000 and above

Finally, Mr. Martin should provide across-the-board tax relief through a 10% cut in income taxes. Such a cut could be accomplished by reducing the federal tax rates of 17, 26 and 29% to 15, 24 and 27%.

But make no mistake about it, putting an end to bracket creep and re-indexing the tax system is priority number one when it comes to tax relief in the millennium budget. If you want to learn more, surf by the CTF web site and join our "billion byte march" for tax cuts. We can only hope the Prime Minister allows Mr. Martin to back his tax cut talk with a tax cut walk!