EN FR

Dreaming of a Taxpayers Budget: Part 1

Author: 2003/04/10
Wouldn't it be refreshing to live in a province where taxes were lowered so that we could compete with other jurisdictions Well, our Minister of Finance has the opportunity to do just that with the upcoming provincial budget. Budget speeches are littered with rhetoric like "accountability" this, "balanced approach" that - terms which are usually code for doing nothing, but maybe Selinger will surprise us and re-invest in the hard working men and women in this province.

Maybe he will recognize that opinions put forth by his cabinet colleague Mary Ann Mihychuk that low taxes don't have anything to do with job growth is socialist rhetoric that has put the Province of Manitoba in the perpetual "have not" category.

Well, one can only dream.

To make the Minister's job easier, the CTF offers the following as a way to put Manitoba back on the economic map:

  • Eliminate bracket creep by indexing tax brackets and credits to inflation - bracket creep is a stealth form of taxation. This pesky tax has collected over $15 million in additional revenue in the past few years.
  • 2003 individual income tax levels should surpass those in Saskatchewan, drop rates from 10.9% to 10%, 14.9% to 12.5% and 17.4% to 14.5%. According to a provincial government document the Manitoba Advantage (or Disadvantage), in 2002 a single income family of four in Manitoba earning $40,000 will pay $2,291 provincial income tax, in Alberta that same family will pay $1,079 - that is a 53% higher tax burden for Manitobans.
  • Set the 2003 basic personal exemption (BPE) and spousal exemption (SE) to $8,000 - currently Alberta's rate is $13,525, Saskatchewan's boasts an $8,000 exemption and Manitoba sits at $7,34 for the BPE and $6,482 SE. There is a very simple rationale for raising the BPE, it will take thousands of low-income earners off the tax rolls. Rather than goofy income redistribution programs that the government loves to tout, lowering the BPE would afford the opportunity for lower income families to provide a decent living to their children without depending on monthly and quarterly government cheques.
  • No new tax credits to Manitoba's income tax system - the principals of taxation tell us that the tax system should be simple. The accountability of government is enhanced when citizens are able to understand their tax system. The multitude of tax credits already in effect and annual additions to this tally only serve to further complicate the tax system.

Our current tax system acts as a disincentive to work, save and invest. It has put government in the driver's seat and relegated taxpayers to go along for the ride.

The nightmare of high taxation in Manitoba needs to end, and the first place to start is the upcoming provincial budget.

To be continued . . .

Tax fact: An inter-provincial survey comparing the impact of provincial and federal income taxes shows that Manitobans pay the eighth highest income taxes among the ten provinces.


A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<