Real Tax Relief Must Accompany Tax Reform
Author:
Richard Truscott
1999/11/18
REGINA: Richard Truscott, Saskatchewan Director of the Canadian Taxpayers Federation, is applauding many of the recommendations of the Personal Income Tax Review Committee, but is disappointed that the Committee isn't recommending a more substantial tax cut in the short term.
"Proposals to de-couple from federal income taxes, end bracket creep, increase family exemptions, and cut the PST all build on CTF recommendations," says Truscott.
Truscott is disappointed that the Committee didn't recommend a single income tax rate. "The three-rate system is unnecessarily complicated, and punishes economic success. One single flat rate is simpler, would encourage income growth, and would be fair to low-income earners because of much larger personal exemptions," says Truscott
Truscott is also disappointed, however, that the Committee did not recommend more substantial tax cuts. At the last provincial budget, the CTF had recommended a $250 million tax cut over two years. The Committee recommends a $240 million tax cut over four years.
"Taxpayers will be looking for a substantial commitment to tax relief in the provincial budget," says Truscott. "Saskatchewan's high tax burden remains the most fundamental roadblock to more jobs, greater prosperity, and steady growth."
"Tax reform is important, but it won't mean much to taxpayers if their overall tax burden doesn't get lighter."
He concludes, "This report is a big step in the right direction. Both the government and committee members should be commended for the initiative. But without meaningful tax relief, tax reform will just put a more efficient yoke on the taxpayer's shoulders."