WINNIPEG: The Canadian Taxpayers Federation today announced an income tax relief plan for Election '99. The campaign is supported by print and billboard advertising throughout the province.

The CTF's Election '99 message is: Need a raise Vote for income tax cuts. "The answer to the growing frustration over shrinking disposable incomes, brain drain and tax cut brinkmanship with other provinces is to dramatically cut and reform personal income taxes," said Victor Vrsnik, CTF provincial director.

"A cut in the provincial personal income tax rate is better than a salary raise of the same amount because a raise is taxable. The impact of bracket creep waters down the value of a raise even more."

The CTF income tax relief plan:

That provincial personal income tax be calculated as a percentage of income, not federal tax;

That a single rate of taxation competitive with other provinces be introduced;

That a generous basic personal exemption - in the $11,000 range set by Alberta - be set to insulate low income earners from the tax roles;

That the basic personal exemption be fully indexed to inflation to offset the effect of bracket creep;

That no new tax credits be introduced;

In the meantime, the CTF calls for a seven-point income tax cut for 1999 equal to this year's extra $166 million in income tax revenue over 1998, and a commitment by the province to apply the fiscal surplus against debt retirement.
The CTF's tax reform plan including the seven-point personal income tax cut would return to Manitoba taxpayers the wealth they created in the first place, restore confidence in badly needed labour pools and financiers, close the inter-provincial tax gap, and create jobs.

According to Deloitte & Touche calculations, an average $40,000 income earner in Manitoba will pay $10,774 in income taxes in 1999 - the third highest in the land. At 48.5% in 1999, Manitoba's personal income tax rate trails 4.5 points behind Alberta and 9 points behind Ontario. By 2004, Ontario will breeze 14.5 points ahead of Manitoba.

"Election '99 must make income tax cuts and tax reform priority number one. All other election promises of renewed spending hinge on Manitoba's ability to develop a competitive tax system first," said Vrsnik.