Doer Government should Seize Initiative and Overtake Sask. in Tax Cut Derby

WINNIPEG: The Doer government is in the enviable position to deflect some criticism of noncompetitive income taxes by announcing a tax cut package on budget day that will launch Manitoba ahead of Saskatchewan in the tax cut derby. A stay-the-course budget announced today in Saskatchewan creates a window of opportunity for the Doer government to up the tax cut ante with our western neighbour.

"There is no denying that the three western NDP governments are hoping to avoid the distinction of the highest taxed province," said Victor Vrsnik, CTF provincial director. "The latest pillow fight between Premiers Doer and Dosanjh over an alleged error in a BC budget tax comparison chart shows that a high tax ranking is about as popular as the plague."

Finance Minister Greg Selinger should announce the following tax cut measures at a minimum on budget day to nudge Manitoba ahead of Saskatchewan in the tax cut race:

Step 1: Like Saskatchewan, announce the elimination of bracket creep by restoring full-indexation of tax brackets and credits;
Step 2: Lower Manitoba's second tax bracket rate of 16.2% below Saskatchewan's 13.5%;
Step 3: Lower Manitoba's third tax bracket rate of 17.5% below Saskatchewan's 16%; and
Step 4: Raise Manitoba's $7,361 basic personal exemption and the $6,251 spousal exemption higher than Saskatchewan's $8,000 basic personal exemption and $8,000 spousal exemption.

"These tax cuts will not stem the brain drain and business drain to Alberta, Ontario and the US but it will restore some confidence in Manitoba's ability to remain competitive with other provinces," noted Vrsnik. "And the indignity of playing second fiddle to Saskatchewan will be erased."