Will taxpayers take it
Author:
David Maclean
2003/12/02
The province's mid-year fiscal update showing the province is running another $500 million deficit was a warning shot across the bow of taxpayers. The next shot could come in the form of a tax increase.
Here are the only facts that matter: Since 1999, provincial government spending has grown 22 per cent faster than revenues. This splurge continues while the population declines. Per capita government spending has increased by 16 per cent even after you adjust for inflation.
What stings even worse is that if government spending had been tied to inflation since 1998 (the last year of any semblance of fiscal sanity), we would currently be sitting on a $888 million surplus, or a rainy day fund worth $5.6 billion.
Instead we have more civil servants earning higher wages. We have empty $28 million potato storage sheds, $6 million in electronic bingo equipment collecting dust, a stake in a bankrupt film company, a PR company in Vancouver, a brewery, a money losing internet company, and an over-budget political advertising campaign aimed at making us feel good about these disasters.
The writing is on the wall. Something has to give. Current spending levels are unsustainable.
There are three options for the government: They can re-balance the budget by cutting spending or raising taxes, or a combination of the two. Which road do you think the NDP will choose
A wise man once said the best predictor of future behaviour is past behaviour. With that in mind, take a look at how this government has behaved for the past four years. When was the last time you heard this government announce a hiring or spending freeze The events of September 11 didn't trigger any austerity measures. Neither did the worst drought in memory or the BSE crisis. Pigs will sprout wings and fly before this government does anything that might impact their beloved bureaucracy or the coalition of special interests that support them.
This writer stood in front of Finance Minister Harry Van Mulligan and asked him if he would rule out a tax increase. He stared abjectly at his shoes and muttered "well, that's something we'll have to look at." That's all we need to hear.
We must be louder, smarter and more diligent. Our message has to be simple and consistent: The government MUST balance the budget within the next four years, and they have to do it by controlling spending, and NOT by raising taxes.
In the coming weeks, the Canadian Taxpayers Federation will be circulating a petition calling for a balanced budget over four years and demanding the government rule out tax increases. Please sign it, and encourage friends and neighbours to do the same.
Write letters to your MLA telling him or her that we're not going to stand for a tax increase. Even better, next time you are in Regina, visit Finance Minister Van Mulligan's office and respectfully tell him in person. Don't leave until he speaks with you. Call in to radio shows and write letters to your local newspaper. Let's be heard.
The mid-year update was a warning shot. Consider yourself warned.