• Saskatchewan still beating Manitoba in middle tax bracket
  
• Bracket creep continues unabated
  
• Festering school tax problem not addressed

WINNIPEG: The Canadian Taxpayers Federation (CTF) reacted today to the provincial government's Speech from the Throne. With little to nothing offered up for Manitoba taxpayers, the NDP Government has hit the snooze button.

"It was simply a matter of time before the NDP government showed their true colours that they are not interested in giving taxpayers in Manitoba meaningful tax relief," stated Provincial Director Adrienne Batra. "There was no economic plan presented today and no mention of addressing the already onerous tax burden Manitobans have to contend with."

Saskatchewan still beating Manitoba in middle tax bracket, bracket creep continues unabated
On the personal income tax front, the NDP government renewed their election commitment to reduce taxes by January 2004 when the middle tax bracket will fall from 14.9% to 14%, but even with that minor reduction Manitoba is still behind Saskatchewan's middle tax rate of 13%. "To put this into perspective if you earn $35,000 by January 2004 that will amount to a paltry $40 in savings. Had the NDP government indexed the tax brackets to the rate of inflation, savings could have been higher. Until this stealth form of taxation known as bracket creep is done away with, incremental tax cuts are meaningless," Batra added.

Festering school tax problem not addressed
In 2001 when the school division merger mania began, the CTF warned that amalgamation of the metro-school divisions would lead to higher taxes for all homeowners. Harmonized collective bargaining agreements have driven up salaries and benefits to the highest common denominator.

"Earlier this year we saw a number of Winnipeg school divisions increase taxes by over 13%, yet this government continues to sit on its hands. Our rural communities are being gouged by the disproportionate amount of school taxes paid on farmland," continued Batra. "This government appears to have forgotten that there is life beyond the Perimeter Highway, they have done a great disservice to all Manitobans by not conducting a comprehensive review of the school tax system to explore alternative education funding mechanisms."

"Today's Throne Speech has done little to address the major economic shortfalls that Manitoba is facing, yet (for the umpteenth time) promised 'action', 'strategies', 'investments' not to mention innovative-this and inclusive-that. Even with all of these feel good buzz words, Manitobans continue to face the highest income tax burden in Western Canada while the NDP government pats themselves on the backs for a job not done," concluded Batra.