CTF Responds to June 26 Provincial Tax Freedom Day

WINNIPEG: Most provinces outperformed Manitoba in the Fraser Institute's Tax Freedom Day (TFD) calculation. With Tax Freedom Day falling yesterday on June 26th, Manitoba placed seventh last out of all the provinces in the race to post the earliest day when individuals stop working for government and start to work for themselves. Manitoba's ranking fell one day from last year when Tax Freedom Day came on June 25th.

According to Fraser calculations (www.fraserinstitute.ca), Canadians will work until tomorrow, June 28th, to pay the total tax bill imposed upon them by all three layers of government. This is two days later than last year when Tax Freedom Day fell on June 26th.

"The Tax Freedom Day calculator is an excellent measure of the total tax burden imposed on Canadians," said Vrsnik. "This year's drop on the tax freedom index should clear up any misconceptions that overall taxes are falling. On the contrary, they're back on the rise."

Manitoba fell one day from last year on account of a series of provincial tax hikes. Although income taxes were marginally down in 2002, the average Manitoba family paid more property taxes, sales taxes, liquor and tobacco taxes, vehicle registration fees, social security taxes.

"For every dollar the province managed to trim off income taxes, they had no trouble recouping their losses through higher tax returns and fee increases," noted Vrsnik.

"From January 1st to April 12th, Manitobans toiled through the cold winter months for the Prime Minister's government. Spring service to Premier Gary Doer was paid in full between April 13th to June 13th. Then, Manitobans made their final payment to Mayor Glen Murray from June 14th to yesterday, June 26th before they were free to spend the wealth they created."