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More of everything, not enough of anything

Author: Adrienne Batra 2007/05/02
The Manitoba election has been dominated with language such as more cops, more nurses, more doctors, more green projects, more social justice, and more social services - all adding up to one thing: more spending.

Much of what is being committed (so far) by each of the parties can be paid for without bringing Manitoba's economy to its knees. That is because we are getting more money now, then ever before, through transfer payments from our rich neighbors in Alberta, Saskatchewan, Ontario and BC. In other words, it is easy to make a commitment to spend money when someone else is picking up the tab.

As for us meager taxpayers - the ones paying the bills - so far there has been little offered up. The Liberals have committed to eliminating the job-killing payroll tax and reduce income taxes "that are sustainable without risking vital social programs like health and education." Nothing too bold in that, but it is how they laid it out in their campaign platform that is worth noting.

Using information collected by Statistics Canada, Gerrrard's team points to the 28,000 people that have left Manitoba between 2000 and 2006 - that is the equivalent to losing the entire population of Portage la Prairie, twice!
The point is the average Manitoba taxpayer generates $6,416 in tax revenue so if even half were taxpayers, Manitoba's economy has been deprived of over
$103 million.

As for the provincial Tories, they seem much too pre-occupied offering credits for "going green." Everything from taking the PST off bicycles to shrinking the PST to 3 percent on the purchase of fuel efficient vehicles, the Tories have taken a page out of the NDP playbook on how to socially engineer our lives. But it's not all bad, they have committed to eliminate the inane $2/head cow tax and return those dollars to producers and arguably their boldest move on the tax front is a one-point reduction in the PST.
Taxpayers are still waiting to hear what they will do on the income tax front which is the single most punishing tax in Manitoba.

The NDP, of course, have a competitive advantage over the other two parties having just brought in a budget, re-announcing and even enhancing previously made commitments. The NDP's pronouncement to introduce legislation to meet Kyoto targets by 2012 has not been costed out and frankly, makes no sense.
In a study commissioned by the Canadian Taxpayers Federation, Dr. Ross McKitrick from the University of Guelph predicts that price increases and wage reductions needed to bring energy consumption down to Kyoto levels will reduce annual real net household income by about $225 per month. That's a
5.5 percent drop in disposable household income starting in 2010.

And don't believe the hype Doer's gang has been spreading having lowered income taxes. Because the NDP has not indexed our tax brackets to the rate of inflation, savings to the tune of $100 million has been denied Manitoba taxpayers.

Since this is only the second week of the campaign, rest assured there will be "more" - pardon the pun - to come.

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