• Reveals hidden bracket creep 

REGINA: The Canadian Taxpayers Federation (CTF) is blowing the whistle on a double standard that allows Saskatchewan MLAs raises to be calculated at a higher inflation rate than used for hiking their citizens’ tax brackets.

Saskatchewan MLAs are getting a 3.3 percent increase this year, while the province’s tax brackets on income only rose by 2.5 percent.

“The difference is due to the fact that MLA wages rise by the provincial rate of inflation, whereas Saskatchewan tax brackets rise to the national rate of inflation,” said Lee Harding, CTF-Saskatchewan director. “Because of Saskatchewan’s economic boom, our cost of living rose higher here than in the rest of the country. This difference meant higher wages for politicians, but inadequate tax relief for citizens.”

If provincial tax brackets increased as fast as provincial inflation, our basic exemption would be $103 higher this year, which alone would save taxpayers $11 each. As well, the second bracket would be $313 higher, and the highest bracket $894 higher, meaning even more tax breaks for those with middle and higher incomes.

“It was deceptive for the province to advertise on January 6 that it was giving Saskatchewan citizens a $22.7-million tax break. In fact, it was probably ripping them off by about $7-million,” continued Harding.
On the other hand, if MLA wages only rose at the national rate of inflation (2.5 percent) instead of the provincial rate (3.3 percent), every MLA would make $676 less. Every cabinet minister would earn $1,019 less, every deputy minister $1,068 less, and Premier Wall $1,166 less.

“It would be preferable if tax rates were increased by the provincial rate of inflation. However, if this change is not made in the upcoming budget, then the government should decrease its wage hikes to 2.5 percent.”