WINNIPEG: The Filmon Government's personal income tax relief plan announced today falls short of taxpayer expectations.

"Given the hype the Tories generated in their campaign messaging over the tax gap with other provinces, it now appears that the Tory's bark is bigger than their bite," remarked Victor Vrsnik, CTF Provincial Director.

"We've been waiting for tax cuts for nearly 2000 years," said Vrsnik. "Young Manitobans will not wait around for a pittance of a tax cut that does not take effect for a couple of years."

"Election promises a few years down the road will not command the confidence of Manitoba taxpayers for meaningful tax relief. The government should reverse this announcement and deliver on the goods now," demanded Vrsnik.

The Canadian Taxpayers Federation's income tax relief plan has set the bar much higher. It calls for:

That provincial personal income tax be calculated as a percentage of income, not federal tax;

That a single rate of taxation competitive with other provinces be introduced;

That a generous basic personal exemption - in the $11,000 range set by Alberta - be set to insulate low income earners from the tax roles;

That the basic personal exemption be fully indexed to inflation to offset the effect of bracket creep;

That no new tax credits be introduced;

In the meantime, the CTF calls for a seven-point income tax cut for 1999 equal to this year's extra $166 million in income tax revenue over 1998, and a commitment by the province to apply the fiscal surplus against debt retirement.
"Election '99 must make income tax cuts and tax reform priority number one. All other election promises of renewed spending hinge on Manitoba's ability to develop a competitive tax system first," said Vrsnik.