Winnipeg, MB - The Canadian Taxpayers Federation (CTF) was appalled today after carefully reviewing the NDP government's 2008 budget. Spending has increased by 6.2 per cent, income taxes remain the highest in western Canada, support from other provinces has passed $2 billion for the first time in history, and bracket creep continues unabated.
"Never in Manitoba's history has our province relied so heavily on handouts from other provinces," stated CTF Manitoba Director Adrienne Batra. "Worse yet, the government decided to increase expenditures on politicians and their staff by almost $4 million."
The provincial government has increased the Basic Personal Exemption by $100, reduced the lowest income tax bracket from 10.9 to 10.8 per cent, which adds up to little more than the $20 increase Manitobans will pay to register their vehicle. "We caution taxpayers not to spend all of these savings in one place since fees and levies are also on the rise," added Batra.
Once again, the NDP government has not indexed tax brackets to the rate of inflation, thereby allowing bracket creep to continue unabated. However, there were some changes in school tax credits which could help our rural communities. "An increase to the school tax credit on farmland and $75 more for the property tax credit will marginally help homeowners, as long as the school boards keep their hands out of our pockets."
Other highlights from the 2008 budget included:
- Increase in the province's net debt from $10.4B to $10.9B
- $806 million wasted on debt servicing costs as debt repayment continues to be ignored
- Fees and other forms of backdoor taxation have increased from $2 billion in 2003 to $3.3 billion in
this year's budget
- Overall spending has increased 6.2 per cent since 2007, well above population and inflation growth
- Increase in spending on politicians and their staff of $4 million since 2007
"The NDP government erroneously claims that it has saved Manitobans $1 billion in taxes since it took office. But, increase to back door fees and levies have sucked out an extra $1.3 billion out of our pockets this year alone," concluded Batra.