Property Taxes
Any provincial income tax cut would be an exercise in futility if property taxes continue to rise in Manitoba. Even with the announcement of a reduction to the ESL, it will amount in paltry savings for homeowners. Since every penny the ESL is reduced will be offset by increases in school taxes, this so-called tax cut amounts to nothing more than tax redistribution.

Let's look at school taxes on farmland for example. With rates set to go even higher, there are significant discrepancies that still exist from one RM to another regarding the portion of school taxes generated from farmland. Fifty-eight out of 116 municipalities depend on farmland to support over 50% of the school division tax base. Not once in the ESL announcement was this concern addressed.

Again to make the government's job easier, the CTF offers the following:

• The provincial government should eliminate or phase out the school division taxes levied on farmland; and
  
• Conduct a comprehensive review of the school tax system to explore alternative education funding mechanisms.

Privatization
The age of government ownership and control of the economy has come to an end in many parts of North America, but still exists in Manitoba. Potential crown priviatizations, namely the MLCC and MPI would generate revenues that could be applied toward debt retirement.

Most of the services provided by the crowns could easily be delivered by a competitive private sector. The private sector would be equally capable of running tourist resorts, selling liquor and auto insurance as they do for any other industry where competition prevails. Therefore, the CTF recommends introducing competition, privatization and alternative service delivery to government departments and agencies.

Business Subsidies
The CTF has long supported the elimination of business grants, loans and other special concessions to individual businesses in order to pave the way for greater tax relief and debt repayment.

When governments decide to play investment banker for a select few business it puts them into the habit of picking winners and losers, thereby creating an unlevel playing field. These practices also distort the market place - government assistance can entice businesses to invest in areas they would otherwise avoid due to market conditions. It was Ontario's Enterprise Minister Jim Flaherty that recently said "if the service is offered in the Yellow Pages, government shouldn't be in the business."

Accountable government
At the beginning of 2003, Manitoba's Auditor General called on the provincial government to use normal accounting rules when communicating the province's finances with citizens. Mr. Singleton stated that "as long as the government continues to focus on a budget prepared on a basis different than most other governments in Canada, the Legislature and the citizens of Manitoba will be hindered in their ability to hold the government of the day accountable for its management of public monies."

Recommendations to the province to implement the Summary Budget as the primary budget for Manitoba will put us in line with many other governments across Canada. The Summary Budget would allow the Legislature and the public understand the government's true financial position, including the crown corporations.

The Taxpayers budget. . . one can only dream!