Moving Saskatchewan from 'have-not' to 'go-to'
Author:
David Maclean
2003/02/12
When it comes to the provincial economy, the last 50 years in Saskatchewan clearly shows us what doesn't work: high taxes and government intervention. Saskatchewan continues to lag behind the rest of Canada in economic growth. Thousands of our best and brightest have left the province for more fertile economic soil.
In the fall of 2002 the province launched the Wide Open Future campaign - a multi-million dollar ad campaign aimed at selling the virtues of Saskatchewan to ex-patriates. Although it is too early to definitively deem the campaign a failure, it's possible the campaign did more to raise awareness of Saskatchewan's shortcomings than our strengths.
In a submission to Finance Minister Eric Cline, the Canadian Taxpayers Federation (CTF) forwarded seven recommendations aimed at making Saskatchewan a more competitive jurisdiction, and bringing people back to our province.
We need more than an advertising campaign -- we need fundamental change. The recommendations are aimed at changing Saskatchewan from a 'have-not' to a 'go-to' province. Implement some real economic reforms, and profound change will occur. And we're not alone in this pursuit: similar changes have occurred in Ontario, Ireland and Denmark. The similarities are remarkable, and provide a beacon of hope for young people looking for a brighter future.
Recommendation 1 and 2: Conduct a review of the property tax system, and reduce school taxes by 40 per cent over the next four years. 8,852 Saskatchewan residents signed a petition calling for a review of the property tax system and reduction of school taxes. Taxes on property are inherently unfair, and with the highest property taxes on the prairies Saskatchewan is desperately needs relief.
Recommendation 3: Increase the basic personal exemption (BPE) to $10,000 over three years. BPE is the amount a taxpayer can earn before paying tax. Saskatchewan's level currently stands $8,000, while Alberta's is $13,552. Why do we tax the working poor in Saskatchewan Increasing the BPE would put $126 million back in taxpayer's wallets.
Recommendation 4: Trim government spending in all government departments except health, education, infrastructure and agriculture to save taxpayers $92 million and offset tax cuts. Total government spending has ballooned by $800 million over the last two years. We need to stop growing government, and start making Saskatchewan a better place to do business.
Recommendation 5: Open up the commercial Crown corporations to private investment. Selling off Crown assets and paying down the debt would yield savings in debt servicing costs. These savings can then be put toward offsetting tax cuts. Selling off Crown assets would also foster innovation, flexibility, and breath life into the Saskatchewan economy.
Recommendation 6: The province must end the practice of corporate welfare and direct investment in the economy. The government has lost hundreds of million on dicey business schemes like Spudco. We should turn the page on this chapter in Saskatchewan history and never look back.
Recommendation 7: The province should adopt summary budgeting practices. Provincial budget should show business plans for all of government - not just the General Revenue Fund. Saskatchewan, PEI and Newfoundland and Labrador are the only provinces still using incomplete budgeting processes.
While there is no single way to grow Saskatchewan, it's important that we identify possible solutions. The seven recommendations submitted to Finance Minister Cline would be a great first step in creating a better province to live and work. Hopefully our leaders have the will to make these recommendations policy.