REGINA: The Canadian Taxpayers Federation (CTF) is calling on the Saskatchewan government to explore major tax reforms, and is presenting Finance Minister Ernie Cline with a petition of 17,000 names demanding tax cuts.

The CTF wants the government to announce a Tax Reform Committee in the upcoming budget to examine tax reform. Saskatchewan Director Richard Truscott referred to the tax innovations in yesterday's Alberta budget. Alberta is separating the provincial tax rate from the federal tax rate, moving to a single-rate tax with much larger personal exemptions, and fully indexing taxes to inflation. Manitoba has also announced it is looking to set up its own income tax system by the year 2001.

"It's time for our government and our tax system to move out of the 1970s and into the 21st century with a made in Saskatchewan income tax system that meets the needs of Saskatchewan's taxpayers," says Truscott. "Our government cannot afford to sleepwalk through another fiscal innovation."

"De-linking provincial tax system from federal rates would make our tax system more flexible, simpler, fairer, and more conducive to economic growth. It will also make our government more accountable for their tax policies because taxpayers will have a better understanding of the actual rate of tax they pay to each level of government," adds Truscott.

"Most importantly, a de-linked system of tax on income, as opposed to tax on tax, would allow Saskatchewan to fully index its tax brackets and credits to inflation and stop the stealth tax increases of bracket creep," says Truscott.

The CTF is also presenting provincial Finance Minister Eric Cline with a petition of over 17,000 names demanding immediate meaningful tax relief in the March 26 budget. The CTF is calling for $250 million in tax cuts that includes the elimination of the Deficit Reduction Surtax, a four point reduction in the provincial income tax rate, and a two point reduction over two years in the provincial sales tax rate.

Truscott says, "Saskatchewan needs tax cuts right now and major tax reform as soon as possible. Let's get on the road."