Pre-budget submission

SASKATOON: In its 2006 pre-budget submission to the Saskatchewan government, the Canadian Taxpayers Federation (CTF) calls for spending restraint, tax relief for businesses and individuals and accountability reforms.

CTF Saskatchewan director David MacLean launched the report before an audience of University of Saskatchewan commerce students. The report, entitled "Choosing a new path," calls on the government to implement reforms aimed at creating a sustainable and prosperous future.

"With each passing year, signals that Saskatchewan is falling behind become more pronounced," said MacLean. "In a time where the rest of western Canada is growing faster than could have been imagined a decade ago, Saskatchewan lags. Our economy is among the slowest growing in Canada and, as a result, our best and brightest are leaving for Alberta and British Columbia."

The report points out that the size of government is no longer sustainable. Statistics Canada data indicates that there are 7,000 more provincial public servants than there was just five years ago. Over that same period of time, Saskatchewan has lost nearly 23,000 people.

"It's clear that the province is not on a sustainable path. Government policies of high taxes and direct investment into the economy have failed," added MacLean. "Now it is time to choose a new path."

The report calls on the government to implement recommendations from the Business Tax Review committee, which was chaired by Jack Vicq. Specifically, the CTF recommends reducing the corporate income tax rate, eliminating the corporate capital tax, increasing the small business threshold and removing the PST from business inputs.

The CTF also recommends establishing fixed election dates, requiring a referendum before raising taxes, and imposing financial penalties on cabinet ministers if they do not stay within their approved budget allocation.

-30-

Summary of Recommendations

Recommendation 1
Reduce government spending and enact 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.

Recommendation 3
Privatize Saskatchewan Transportation Corporation and abandon plans to construct an $18 million bus depot in Regina.

Recommendation 4
Stop spending public money to support the Meadow Lake pulp mill.

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

Recommendation 6
Establish a timetable for increasing the provincial share of education funding to 75 per cent in five years.

Recommendation 7
Increase the Basic Personal Exemption to $15,000 over five years.

Recommendation 8
1) Phase out the corporate capital tax by July 1, 2008
2) Reduce the corporate income tax rate to 12 per cent by July 1, 2008
3) Increase the small business limit to $500,000 by July 1, 2008.
4) Remove the PST from business inputs.

Recommendation 9
Adopt fixed election and budget dates.

Recommendation 10
Require approval from the electorate before raising taxes

Recommendation 11
Legislate financial penalties for Cabinet Ministers who exceed approved budgets.

Recommendation 12
Legislate an all-party committee to review and approve crown and agency heads