• Taxpayers Federation meets with Finance Minister to present 2006/07 budget recommendations

CTF Pre-budget Submission

WINNIPEG: The Canadian Taxpayers Federation's Manitoba Director Adrienne Batra met with Finance Minister Greg Selinger to present the CTF's findings and recommendations for the 2006/07 Manitoba Budget.

The theme of this year's pre-budget submission is Fiscally Friendly Manitoba. "Manitobans remain some of the highest taxed citizens west of Ontario and the provincial government can no longer ignore that fact," stated Batra. "The CTF recommends the government's fiscal strategy must be built on the pillars of debt reduction and tax relief.."

The CTF maintains that Manitoba's tax system be straight forward and understandable. Further, the tax system should promote economic prosperity for all Manitobans and not discourage the incentive to work, save or invest. "Manitoba's current tax rates do not promote this in spite of marginally reduced personal and business tax burdens over the past three budgets," added Batra. "In addition to tax relief, the provincial government must index tax brackets to the rate of inflation, thereby ending the insidious stealth taxation known as bracket creep."

While Manitoba's debt situation has improved marginally over the past few years, the province must focus on debt reduction, not debt management. "There is no greater loss to taxpayers than $269 million in public debt servicing costs," said Batra. "Every day Manitoba's debt costs taxpayers $736,986 or $30,707 an hour. These do not add to services for Manitobans and are the result of irresponsible spending patterns which exceeded revenues. "

The CTF proposes the adoption of a mandated debt retirement payment based on 2.5 percent of own source revenues (total revenues less any federal transfers). "Taking an aggressive approach to the debt today, will pay off dividends in the future," said Batra.

The next provincial budget must control spending in the area of health care where 42 cents of every tax dollar collected goes to paying for a system that is not working. "Pouring more tax dollars into a sick health care system is wholly irresponsible, the province must allow for private delivery of services and competitive contracting with the private sector."

Allowing a choice of private service delivery is not an option, but a necessity as is evidence by a growing number of polls, patients seeking private alternatives and the Supreme Court ruling deeming government wait lists a violation of human rights.

"With the measures the CTF has proposed, Manitobans will keep more of their hard earned money, allowing them to make choices for themselves and their families, not the government," concluded Batra.


The CTF's 14 Recommendations for the 2006/07 Budget are:

1. Set provincial income tax rates as follows - first rate from 10.9 percent to 10 percent, middle rate from 14 percent to 12.5 percent and third rate from 17.4 percent to 14.5 percent. Phasing in the last two reductions over five years.

2. Raise the Basic Personal Exemption in the 2006 tax year to $9,000.

3. Fully index Manitoba's tax brackets, BPE and spousal exemption to the rate of inflation and end bracket creep.

4. Reduce the size and costs of the public service. Re-examine salaries paid to the public service, contractual relationships, as well as the total number of employees currently on the government payroll. Public sector wages must be reviewed in all sectors.

5. Eliminate business subsidy programs which would result in $11.5 million in annual savings.

6. In conjunction with the next provincial election, hold a provincial referendum on the question of opening up Manitoba Public Insurance to competition.

7. Privatize Manitoba Liquor Control Commission and use the proceeds of the sale to pay down debt.

8. Introduce competitive tendering for services within the health system. The government should further consider public-private partnerships for all health services - including ownership and operation of hospitals. Further, the province should place no impediments to market forces in the form of a parallel public/private system.

9. Establish a long-term solution to increase the provincial share of education funding to 75 percent in order to curb school board taxes to fund education.

10. Expand the scope of the Balanced Budget, Taxpayers Protection and Debt Retirement Act to school boards and municipalities.

11. Continue to phase out school taxes on farmland.

12. Continue to phase out the Education Support Levy.

13. The CTF recommends the adoption of a mandated debt retirement payment based on 2.5 percent of own source revenues (total revenues less any federal transfers).

14. increase the budget for Manitoba's Provincial Auditor by $500,000

A full copy of the report, "Fiscally Friendly Manitoba" is available > by clicking here.