CTF Gets Together With Finance Minister in Pre-Budget Meeting Tomorrow

Ottawa - The Canadian Taxpayers Federation (CTF) welcomes the news, reported over the weekend, of possible tax savings for Canadians that will be announced in the 2005/06 budget. Federal Director John Williamson will meet with Finance Minister Ralph Goodale on Tuesday morning in Ottawa to discuss this issue as well as other CTF budget priorities.

"The CTF will take this opportunity to discuss the need to provide broadly based personal income tax relief, particularly when Ottawa is over-taxing Canadians and running multi-year billion dollar surpluses," said Mr. Williamson. "It appears two signature CTF issues are on the budget drawing board, namely a gas tax transfer to cities on a per capita basis, and a tax cut in the form of either a higher basic personal exemption or lower rates. We also want to discuss the need to control government spending, and pay down Canada's $500-billion debt.".

The CTF's top budget priorities include:

• Raising both the Basic Personal Exemption (BPE) and Spousal Exemption to $15,000 within five years to provide tax relief for all Canadians. This change will remove 1.8 million Canadians from the tax rolls and benefit the remaining 13.8 million taxpayers.
• Adopting the CTF's Municipal Roadway Trust as the most expedient and equitable way to return gas tax revenues to roads in Canadian cities.
• Limiting expenditure growth to a maximum annual amount of inflation and population growth.
• Redressing inequalities in the Employment Insurance payroll tax regime by lowering and harmonizing employer premiums with those of employees.
• Abandoning proposals to subsidize institutional daycare and instead introduce a per child tax credit that is available to all Canadian families. Public policy bias on this issue must be neutral as parents are best able to decide what type of child care arrangements most suits their family.
• Instituting a legislated debt repayment schedule with annual payment of 5 per cent of revenues.

"Hopefully, Minister Goodale will give taxpayers reason to believe the government is preparing a more balanced approach to budgeting by offsetting spending increases with debt repayment and tax relief," concluded Williamson.