Spending control, income tax relief and innovative government reform top recommendations

The Canadian Taxpayers Federation (CTF) released its 2011-12 Saskatchewan pre-budget report today, following a meeting with Minister Krawetz on Thursday afternoon. Controlling spending, providing income tax relief and moving forward with innovative government reform were among the CTF’s top recommendations.

“The government has made some good progress over the past several years in providing tax relief,” said CTF Prairie Director Colin Craig. “However, had spending been kept in check, the government’s general debt could have been paid off, education property taxes eliminated and they still could have increased support for health care services.”

The CTF calculates that had spending been capped at inflation and population growth since 2006-07, it would have been $8.9 billion for 2010-11; approximately $1.7 billion lower than expected. The CTF recommends capping expenditures at the combined rate of inflation and population growth and using the savings to pay off the debt and reduce education property taxes, personal income taxes and business taxes.

Innovative government reform ideas included:

• Managed competition - encourage bureaucrats and the private sector to bid for providing government services. This approach saved the City of Indianapolis millions
• Gainsharing – create an incentive so that bureaucrats can keep part of the savings from cost reductions (while maintaining or improving results for taxpayers)
• Open up health care – maintain public health system, but allow licensed private health firms to provide the same health services. This would reduce waiting lists and, keep “health vacation” dollars in Saskatchewan
• Citizen Driven Culture and Commerce – replace grants to arts groups, businesses and other special interest groups with tax relief, empowering citizens to decide which organizations receive their support

“The Wall government seems open to innovative ideas like charging criminals for their phone calls in jails and working with the private sector on health reform,” said Craig. “We’re hopeful they’ll consider some significant government reform measures to change the way government operates.”

To view the report, click here.