VICTORIA: The Canadian Taxpayers Federation (CTF) applauds the tax reductions measures included in Budget 2007. "For the first time since 2001, taxpayers have been given a notable break," said BC director Sara MacIntyre.

"Budget 2007 provides a 10 per cent reduction in personal income tax rates for British Columbians earning up to $100,000. After several years of multi-billion surpluses, the government has recognized it's time to give something back to taxpayers," said MacIntyre.

"However, the numerous tax credits announced or enhanced unnecessarily complicate the tax code. The CTF has repeatedly urged the government to move toward a simpler, lower and flatter tax system. British Columbia is one of the few provinces that has five different income tax rates. The 10 per cent reduction is certainly welcomed but simplifying the tax system would enhance transparency and set a path for further reductions," said MacIntyre.

"Taxpayers will no doubt welcome the tax reductions, but should note several red flags in this year's budget. Annual debt interest costs are expected to rise from $1.9 billion in 2006 to an estimated $2.5 billion in 2010. The government's total debt is also on the rise, estimated to hit $40 billion by 2010. Program spending or ministerial budgets have surged from $23 billion in 2003 to $29 billion for 2007. That's a 20 per cent increase in four years, definitely not prudent or sustainable."

"The CTF is urging the government to hold the line on spending, adopt a debt retirement plan and a tax plan that is simpler, lower and flatter," concluded MacIntyre.

For more information contact Sara MacIntyre at (604) 608-6770 or be mobile at (604) 999-3319.