Provincial Budget must Plug Brain Drain to Alberta

WINNIPEG: The Canadian Taxpayers Federation calls on the Doer government to announce a taxpayer-friendly budget on Monday that will reverse the brain drain to Alberta.

The Manitoba Bureau of Statistics recently reported that Manitoba suffered a net interprovincial migration loss of over 4,500 people in 2001, up by nearly 1000 emigrants from the previous year. In 2001, over 3,000 net Manitoba refugees relocated to Alberta.

"A comparatively high tax structure in Manitoba has stunted not only the provincial economy but population growth as well," said Victor Vrsnik, CTF Manitoba Director. "For many young Manitobans starting their careers, Manitoba has been viewed from the rear view mirror."

The Alberta Tax Advantage explains the tug but not the shove that is sending off a convoy of Manitoba moving vans toward a western sunset. In 2001, Manitoba posted the highest income taxes and property taxes in Western Canada.

"The Doer government should not stand on ceremony as the young and the restless look for better opportunities outside the province. They need to create the 'Manitoba Advantage' to compete with anything Alberta has to offer," concluded Vrsnik.

• To close the tax gap with Alberta, the CTF makes the following recommendations:
  
• Like Alberta, eliminate bracket creep and fully index tax brackets and credits to inflation.
  
• Set individual income tax rates that surpass those in Saskatchewan. The middle rate should fall from 15.4% to 12.5% and the top rate should fall from 17.4% to 14.5%.
  
• Set the basic personal exemption and spousal deduction to Saskatchewan's level of $8,000.
  
• Freeze overall government spending with the possible exception of health care.
  
• Eliminate the provincial education support levy.
  
• Eliminate school division taxes levied on farmland.
  
• Balance the budget and pay down the debt in accordance with the debt repayment schedule.