WINNIPEG: The Canadian Taxpayers Federation (CTF) is disappointed the city of Winnipeg's preliminary operating budget announced today is not offering any business tax relief for 2008. Property taxes are to remain frozen for the 11th year in a row, the city's revenue and expenditures have both increased by $26 million.

"The one glimmer of hope in this preliminary budget is homeowners will not be punished on their property tax bills for civic politicians' inability to find alternative revenue streams such as contracting out some civic services," said CTF Manitoba Director Adrienne Batra. "Those that are being punished are business owners with no tax reduction and hotel owners with a new 5 percent hotel tax."

The CTF does credit the city for reducing spending in some non-core service areas such as grants and arts funding. "The budget has a $400,000 reduction in discretionary spending, and the CTF applauds the city for reducing spending in an area that is best left to the private sector," Batra added.

The biggest disappointment in the preliminary budget was the lack of any action on reducing the business tax, as per the mayor's written promise from four years ago. "The Economic Opportunities Commission provided the mayor with an entire report full of realistic recommendations on how to eliminate the job-killing business tax," said Batra.

The CTF will be focusing in on presenting yet another list of options for the city in order for a one point reduction in the business tax.