CTF-Sask's Prebudget Submission 1999

New Release

The upcoming provincial budget can mark the road to a better future, or put a roadblock in the way. (Or, the provincial government might do what it has often done, and pull over to the side and sit there.)

So how do we go forward The future growth and prosperity of Saskatchewan can be achieved through meaningful, broad-based tax cuts that put more money into the pockets of the people.

The Canadian Taxpayers Federation is calling for $250 million in tax relief in the provincial budget as part of an ambitious program of tax reform, spending reduction, and taxpayer protection legislation.

Specifically, we are calling for 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.

There is a growing body of evidence, both internationally and here in Canada, that tax cuts work. Lower taxes will stimulate growth, unearth the underground economy, create more jobs, and ultimately generate more revenues to dedicate towards debt reduction and social programs.

But serious tax relief is possible only if the government takes serious steps to control its spending. So we are also calling on the government to hold the line on spending over the next two years, and to undertake a complete program review in order to trim 5% (about $225 million) out of current spending. The government should also consider the sale of some Crown assets to pay down the debt and reduce interest charges.

Saskatchewan also needs real tax reform, and a provincial tax system that is simpler, fairer, more in tune with our province's needs, and more conducive to economic growth. A Tax Review Committee should be established to examine tax reform options.

The CTF recommends separating the provincial tax rate from the federal tax rate (an idea also being explored in Manitoba and Alberta), moving to a flat tax rate with much larger personal exemptions, and fully indexing taxes to inflation to stop "stealth tax increases" through bracket creep.

Finally, the taxpayers of Saskatchewan need to be protected from over-spending, over-taxing governments now and in the future. We are repeating our call for stronger Taxpayer Protection Legislation, which would require yearly balanced budgets, a debt elimination schedule, referendum approval for tax increases, and serious financial penalties for Cabinet Ministers who fail to comply.

We need to keep more of our hard-earned money in our own pockets and stop the erosion of incomes through over-taxation. We need our income to support our families better, to run our businesses better, and to create new opportunities.

The CTF's proposals for the provincial budget help mark the road to a better and more prosperous future. The taxpayers of Saskatchewan are eager to get on that road, and we encourage the government to take the first steps with us.