CTF's Pre-budget Submission

SASKATOON: In its 2007 pre-budget submission to the Saskatchewan government, the Canadian Taxpayers Federation (CTF) calls for the implementation single-rate income tax, spending control legislation and accountability reforms.

CTF Saskatchewan director David MacLean launched the report before an audience of University of Saskatchewan commerce students. The report, entitled "Finishing the job," calls on the government to build on the last years' business tax relief and implement innovative new reforms.

"The business tax reforms - as well as the PST cut - signaled to the world that Saskatchewan is open for business," said MacLean. "Now it's time to finish the job by creating one of the most competitive personal income tax structures in Canada."

The CTF recommends a 11 per cent single-rate tax with a $15,000 basic personal exemption. Single rate taxes are recognized around the world for fostering economic growth, productivity and wealth creation.

"The CTF flat-rate proposal would save a minimum wage earner approximately $685 per year and thousands of low income-earners would be entirely exempt from paying any provincial income tax whatsoever," said MacLean.

The report calls for the implementation of legislated tax and expenditure limitations, noting that if government spending had been held to inflation and population growth each year, the government would be recording annual surpluses in excess of $2 billion dollars per year.

Another key recommendation in the report is to create rules governing how the Fiscal Stabilization Fund (FSF) is used with the hope of one day creating a permanent fund to support government programs.

"We need rules to ensure the "rainy day fund" is used when it's actually raining, and not just because an election is coming," concluded MacLean.

Summary of Recommendations


Recommendation 1
Pass legislation that would limit spending to inflation and population growth.

Recommendation 2
Reduce health care spending by outsourcing services such as cleaning, laundry, food preparation, maintenance, security, landscaping, information technology, property management and human resources services or through the use of P3s.

Recommendation 3
Remove all regulatory restraints in order to create a private, home-grown market for health services.

Recommendation 4
Privatize Saskatchewan Transportation Corporation.

Recommendation 5
Privatize liquor retail operations in order to save millions each year and help create hundreds of new businesses.

Recommendation 6
Amend the Balanced Budget Act so that withdrawals from the fiscal stabilization fund are only made if revenues are forecast to decline at least 5 per cent from the previous four-year, inflation-adjusted average.

Recommendation 7
Review and amend the Balanced Budget Act to require repayment of fiscal stabilization withdrawals within four years from the time of withdrawal.

Recommendation 8
Over the next two fiscal years, increase the basic personal exemption to $15,000 and implement an 11 per cent single rate tax.

Recommendation 9
Increase the provincial share of education funding to 75 per cent over five years.

Recommendation 10
Adopt fixed election and budget dates.

Recommendation 11
Require, in law, approval from the electorate before raising taxes.

Recommendation 12
Legislate financial penalties for cabinet ministers who exceed approved budgets.

Recommendation 13
Legislate an all-party committee to review and approve crown and agency heads.