Can Saskatchewan afford to cut taxes Government ministers and some editorialists say NO. They say we need a "balanced approach", which is probably code for doing nothing. For example, if your kid's room is a disaster area, he or she is taking a "balanced approach" to housework.

Not that I'm comparing Saskatchewan's finances to a messy room. Most messy rooms don't cost $724 million per year to service. The high cost of Saskatchewan's $11 billion debt is the excuse being waved most vigorously by those who oppose tax cuts. Because this is more-or-less a fixed cost (or so the argument goes) tax cuts would either balloon the deficit, or require big cuts to healthcare and education.

Those are good arguments if you want to shut down the tax cut debate. However, they don't hold water for three reasons:

The first reason is that over the medium and long term, tax cuts help pay for themselves by creating a stronger economy that generates more (not less) tax revenue. This is being demonstrated time and gain in provinces where taxes have been cut. Cutting taxes is like igniting a pinwheel firework. Once the rocket of lower taxes is lit, the wheel of prosperity starts to spinning round and round, generating new jobs, increased business activity, and more tax revenue government needs to pay its bills and provide services.

The second reason we can afford tax cuts is that we can reduce debt costs by selling surplus government assets. The government's empire of Crown-owned enterprises is worth billions of dollars. Cash from the sale of some of these assets would pay down the debt and vastly improve out fiscal situation. Furthermore, the influx of private investment into the government-dominated Saskatchewan economy would stimulate job creation, economic growth, and (you guessed it!) more tax revenue.

The third reason we can afford to cut taxes is that we must become more competitive with our neighbors. We all know that Alberta is planning to lower taxes, but so is Manitoba. By next year, Manitoba will have the third-lowest income taxes in Canada, after Alberta and Ontario. Can Saskatchewan, sandwiched among the lowest tax regimes in Canada, truly afford to be a high-tax province

Some say the tax cutting of our provincial neighbors is an irresponsible and even cruel example that we must not follow. What horrible places these provinces must be! We should look at our own high tax bills with pride, and congratulate the Saskatchewan government for resisting such folly! Well, while we're patting the government on the back with one hand, the other hand will be waving goodbye to our sons and daughters as they pull out of the driveway for Calgary, Brandon, and Toronto.

Saskatchewan has been exporting people for so long that some think out-migration and "brain drain" are inevitable. But we shouldn't waste any more time on this defeatism. It's time to break the cycle and change the future for the better - by giving our families and businesses a tax break.

Can we afford a tax cut Yes. Can we afford to not cut taxes No.