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Grading the NDP - 10 Year Economic Report Card

Author: Colin Craig 2008/05/04
No doubt you've seen the NDP government's advertisements that tell us about how wonderful the economy is and what a great job they're doing with our tax dollars. Of course the neutrality of those ads is a little like asking participants in a beauty pageant to score themselves. That's why the Canadian Taxpayers Federation prepared an economic "report card" on the province of Manitoba over past ten years.

Using data from neutral sources such as Ernst and Young, Statistics Canada and the Conference Board of Canada, the province was evaluated in seven "subjects". Economic growth, the unemployment rate, personal income taxes, corporate income taxes, debt, dependency on handouts and spending were evaluated.

Unfortunately, our economy hasn't performed as well as the government ads (that we have to pay for) suggest. Over the last ten years, the province of Manitoba has grown below the provincial average. Although our economy is doing fairly well right now, the ten year track record is quite disappointing. A "C-" was earned.

The outlook brightens as we turn to unemployment. The low levels of unemployment that were achieved during the 90's have continued on under the NDP regime. However, artificially keeping the rate low is the fact that over 50,000 Manitobans left for other provinces between 2001-06 alone. Regardless, the province earned an "A".

Perhaps the biggest surprise in the report was in the area of personal income taxes. Although the NDP claims to be the party for lower income individuals, a Canadian in the $20,000-30,000 a year income bracket will pay more income taxes in Manitoba than anywhere else in the country. Needless to say, the high tax trend continues as income rises. No question about it, "F" for failure.

Oddly enough, the provincial government has a better track record when it comes to small businesses. Small business tax rates are the lowest in the country. However, tax rates for medium and large sized businesses are generally higher than our provincial neighbours. The existence of Manitoba's payroll tax contributed to their "C+" grade in this category.

In terms of debt, according to Statistics Canada, net provincial debt has grown faster than any other province over the past ten years. The other key debt figure, core debt, has only come down slightly. Either way you look at it, debt repayment does not seem to be a priority for the NDP government. "D" for dragging its feet.

Spending is spiraling out of control. Including a 6.2% spending increase this year, provincial spending has increased by almost $2 billion above inflation since the 2003 budget.

Even more troublesome is the fact that more of the province's funds come from other provinces and the federal government. Unfortunately we can no longer joke about Saskatchewan being the "gap" province. Without provinces like them, the provincial government would be bankrupt. So much for fiscal responsibility, two "D's" for spending and dependency.

So what's the solution Cut the fat. Cut taxes. Cut the intrusion in our lives.

The NDP government increased spending on politicians and their staff by $3 million this year. They continually justify our high taxes and are even creating a new board to tell us what types of cars to drive.

Hopefully the report card hasn't fallen on deaf ears. We need the next ten years to be better than the last ten.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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