2005-06 Pre-Budget Submission
VICTORIA: In its 2005/6 pre-budget submission, the Canadian Taxpayers Federation (CTF) urged the Select Standing Committee on Finance and Government Services to legislate a debt repayment schedule. The pre-budget submission can be read or downloaded at: www.taxpayer.com.
"Balancing the budget was the first step to BC's fiscal recovery, the government must now begin to tackle the $37 billion debt. The CTF has proposed a manageable debt repayment schedule that would see BC debt free by 2033, if not sooner" said Sara MacIntyre, British Columbia Director for the CTF.
"Every tax dollar that goes to debt repayment is not going to health, education or tax relief. In the past five years, it has cost taxpayers more than $8.5 billion to service the debt. Now with a forecasted surplus in reach, it is time to learn from yesterday's spendthrift decisions and begin to alleviate the debt load for future generations."
The CTF proposed a legislated debt repayment schedule of 2.5% own source revenue or 75% of the first quarter forecast surplus, whichever is greater, be applied to the debt each year. The CTF submission includes a draft amendment to The Balanced Budget and Ministerial Accountability Act.
"All the government needs to do is look at the success of Alberta's legislated debt repayment to realize the benefits of being debt free. British Columbia can retire its debt too," stated MacIntyre. "The government must continue to exercise prudence and begin to tackle the deferred tax burden-our debt."
Other CTF recommendations:
- A moratorium on tax and fee increases,
- A reversal of the 2002 sales tax increase,
- A Taxpayer Protection Act requiring all future tax increases be subject to voter approval,
- The government proceed with offshore oil and gas exploration,
- The government enact an Olympic transparency plan to track all taxpayer funded Olympic activities,
- Limit increases in health and education spending to the rate of inflation, less federal transfers,
- Increased role for the private sector in health care and
- Privatization of BC Liquor and ICBC.