• Manitobans to pay some of the highest income tax rates again in 2009

• 2010 personal income tax cuts cancelled

• Spending to increase above inflation rate again

WINNIPEG:  The Canadian Taxpayers Federation (CTF) expressed disappointed today after reviewing the provincial government's 2009 budget.  Spending is once again expected to increase faster than the combined rate of inflation and population growth in 2009.  Further, Manitobans will continue to pay some of the highest income tax rates in Canada.

“Given the economic slowdown, no one was expecting massive tax relief,” said CTF Manitoba director Colin Craig.  “However, at the very least we should have seen some kind of plan to bring our tax rates in-line with other provinces.”

Spending will increase by 4.3% in 2009.  Since 1999, spending has increased by over 69% - more than double the combined rate of inflation and population growth.  The CTF will continue to push for a serious review of government spending to identify areas for savings.

• Business tax rate reduced from 13% to 12% as of July 1, 2009
• Previously announced personal income tax relief for 2010 has been cancelled
• No movement on 'bracket creep' - Manitobans will continue to be secretly taxed as our province is one of three provinces that has yet to adjust the tax system for inflatation
• $110-million will be withdrawn from the 'rainy day fund'
• $20-million will be applied to the province's $6.3-billion core government debt instead of the legislated requirement of $110-million
• Farmland school tax rebate increased to 75%
• Education property tax credit increased by $50 to $650

"While it was nice to see the business tax reduction still on track, Manitoba needs a long term vision to address our high tax rates and high levels of government spending.  Hopefully these problems will be addressed later on in the year." added Craig.