In response to Winnipeg Press Article see below.

by Victor Vrsnik,
BC Director,
Canadian Taxpayers Federation

Dear Mr. Doer:

When the Premier of Manitoba launches an unprovoked attack on the Canadian Taxpayers Federation and other well-regarded organizations in Manitoba, he should at least get his facts straight. Contrary to what you say in the Winnipeg Free Press article - "More tax cuts not high on NDP agenda, Doer says," December 2, 2002 - the CTF is supported by not 1000 but 4,000 members in Manitoba alone. And our supporter base is growing.

Personal attacks on the credibility of the directors of the Canadian Federation of Independent Business, the Manitoba Chamber of Commerce and the Canadian Taxpayers Federation is unbecoming of the Premier and demonstrates disrespect also for the Manitoba individuals and businesses who support these groups.

It is remarkable that you would single out for a tongue lashing organizations that refuse government funding but then have nothing to say for any of the groups that line up outside the Premier's office for a handout. It was recently reported that your government rewarded the left-wing Canadian Centre for Policy Alternatives by buying a $15,000 subscription and a $250 government membership. Apparently, the Premier's respect is earned by groups calling for more handouts and the higher taxes that support them.

The Canadian Taxpayers Federation however cannot be bought. We pride ourselves on a policy-independence that can only be maintained by refusing government funding.

If the Premier's wrath is reserved for groups calling for an end to handouts and fewer taxes, then the Canadian Taxpayers Federation knows it's doing a good job.

---

Premier Gary Doer has a message for all those lobbyists who have pursued him over the last three years in the hopes the NDP would cut taxes as low or lower than neighbouring provinces.Don't hold your breath.

"I don't see tax cuts as the only virtue in a budget," Doer said in an interview. "We don't believe you can run up massive debt to pay for a tax cut. We just won't do that. We don't think Manitobans want us to do that."There was no mention of tax cuts in last week's speech from the throne, save for a reminder of tax cuts introduced over the last three years. There is building anticipation among opposition MLAs and lobbyists the NDP might introduce deeper tax cuts in the next provincial budget and use them as a
springboard to a second majority government.

It's a wonderful theory, except that when you listen very carefully to Doer, he doesn't say or do anything that would lead you to believe he is going to cut taxes deeper.

When asked about the likelihood of additional tax reductions, Doer instead talks about plans for an expanded floodway, more money for education and health care, and less sexy expenditures such as debt repayment and a massive injection of cash to fund a civil servants' pension plan liability. "Pollsters will tell you that (tax cuts) are not top-of-mind for Canadians. A couple of years ago, when it was top-of-mind, we tried to reduce taxes, and now that it isn't on people's minds, we're still trying to reduce taxes. But there are provinces who believe so much in tax cuts, they're running a deficit and avoiding debt repayment. We don't think that's sustainable."

Although politicians will debate the merit, the NDP has in fact lowered taxes. Over the first three years of their mandate, the NDP claims to have introduced about $240 million in cuts to income, corporate income, business and property taxes.

But thanks to inflation and Canada Pension Plan payroll deductions, all visible signs of federal and provincial tax cuts are obscured. Property tax credits paid by the province are enveloped in the dog's breakfast of a municipal tax bill.

Still, the NDP case for tax cuts involves some big numbers. Manitoba Finance reports that by the end of the 2002-03 fiscal year, the NDP will have cut personal income taxes by $196 million, the education support levy has been cut by 10 per cent and the property tax credit has been increased to $400.

The tax cuts have had a number of effects. For the typical family of four earning $60,000, the NDP will argue that personal income taxes have fallen by almost $900 annually. The tax cuts have also removed 24,000 Manitobans from the tax rolls.

For business, the NDP has increased the threshold on taxable income, allowing more businesses to qualify for the small business rate. That threshold will continue to rise until 2004, when it will have doubled. The NDP has also announced a 0.5 per cent decrease in the corporate income tax rate in each of the three years between 2003 and 2005. When this plan finally unfolds, the corporate income tax rate will have fallen to 15 per cent from 16.5 per cent.

That doesn't mean that Doer has been labelled a tax cutter. On the contrary, he is taunted by the Tories from the opposition benches in the legislature and is hounded by tax-cut lobbyists almost year round.As he approaches his fourth provincial budget, the premier said he has in particular lost patience for lobbyists who see tax cuts as the means and end to good government.

"Shelly Wiseman (of the Canadian Federation of Independent Business) has never run a business in her life," Doer said. "She's a spokeswoman. What does she own The hallways of the legislature are full of people who will never own their own companies. What company did (Manitoba Chamber of Commerce president) Graham Starmer ever run Victor Vrsnik (of the Canadian Taxpayers' Federation), what has he ever done He represents a thousand people -- a thousand people, for heaven's sake!

"You can't make a budget based on this sort of Pavlov's-dog kind of response to the stuff they say."