Saskatchewan taxpayers can rest easier over the holidays knowing that real progress was made toward lightening our tax load. In many respects, 2006 was a remarkable year for the province.

The good news actually began in 2005 with the establishment of the Business Tax Review Committee (BTRC). The very existence of the committee was a small victory in that the government finally succumbed to pressure from the Canadian Taxpayers Federation (CTF and others) by acknowledging there is a problem with Saskatchewan's business tax structure.

Saskatchewan's business taxes were among the highest in North America. The result is predictable: For the past 60 years, Saskatchewan has been outperformed by virtually every other economy in Canada - even those in Atlantic Canada.

Getting government to admit it had a problem seemed impossible just four years ago. Any suggestion that business taxes may be too high would be met with government accusations of selfishness and elitism. In fact, during the last province election the Saskatchewan Party's pledge to cut business taxes to stimulate job growth led to NDP accusations that the Saskatchewan Party wanted only to help their "corporate buddies" at the expense of the rest of us.

Perhaps due to sinking poll results, or perhaps due to a belated realization that all Saskatchewan residents pay business taxes through their pension plans, the prices of goods and services and through their wages, the government made an abrupt about-face.

When the BTRC released its report calling for dramatic corporate tax reductions, many were surprised. The extent of the recommendations was the first surprise. The rather warm response it got from government was the second.

The government started the fiscal year off by implementing the key BTRC recommendations: Eliminating the capital tax by 2008, increasing the small business threshold from $300,000 to $500,000 and cutting the corporate income tax rate from 17 to 12 per cent by 2008. Saskatchewan went from having one of the worst corporate tax structures in North America to having one of the best. That's no small feat.

The province's most recent throne speech also contained welcome gifts for taxpayers. First, the government announced a policy of dedicating 100 per cent of provincial fuel tax dollars to roads. This could potentially double the provincial budget for highway construction and maintenance. But the big win here is for transparency. The CTF has been recommending for years that government treat fuel tax revenues as a user fee and put badly-needed dollars directly into roads.

However, the biggest announcement of the year was a two point reduction in the PST which should give an average family earning $50,000 per year $300 in annual tax savings.

You have to give credit where credit is due. Saskatchewan taxpayers are better off than they were a year ago, thanks to some sensible policies implemented by the Calvert government. Yet there is still a long way to go.

In 2007, the government needs to focus on three priorities: controlling spending, meaningful income tax relief and permanent school tax reform.

It's a tall order to be certain, but a government awash in tax dollars can make it happen.

2006 was a good year for taxpayers. Here's to making 2007 even better!