Sask Needs "R&R"- tax Relief and tax Reform
Author:
Richard Truscott
2000/02/09
REGINA: The Canadian Taxpayers Federation (CTF) today sent a letter to Finance Minister Eric Cline encouraging the government to adopt the recommendations of the Saskatchewan Personal Income Tax Review Committee in the upcoming provincial budget.
"Saskatchewan people desperately need some R&R - tax Relief and tax Reform," says CTF Saskatchewan Director Richard Truscott in a letter to Mr. Cline. "Saskatchewan must move aggressively to reduce and reform taxes, or our people and businesses risk being left behind as other Canadians move forward," says Truscott.
He noted that other provinces are moving to reduce taxes and reform tax systems. He called for reduced spending in non-priority areas to pay for tax cuts.
"Tax relief and tax reform go hand in hand to help taxpayers and produce a healthier, job-producing economy," says Truscott.
The Saskatchewan Personal Income Tax Review Committee endorsed several CTF proposals, including de-coupling from federal income tax rates, indexing taxes to inflation to end "bracket creep," increasing basic family exemptions, and lowering the PST to 5%. The Committee also recommended a $430 million cut in income taxes over four years.
Truscott said that the CTF is calling for deeper and faster tax cuts ($400 million over two years), a single income tax rate, and opposes broadening the PST base if the purpose is to increase revenue. "Any broadening of the PST base should be revenue-neutral, to make the tax simpler and fairer, not a better cash cow," says Truscott.
But he adds, "The positive aspects of the Tax Committee report outweigh its shortcomings. If the government adopt the Tax Committee recommendations in the budget it would be a big step in the right direction."