Read Part II:

Read Part III:

Do you like the idea of being able to remove an unaccountable politician from office halfway through their term? What about the idea of not paying school taxes?

If you like those ideas, then you’ll probably like some of the other initiatives in the “taxpayer-friendly” provincial election platform recently released by the Canadian Taxpayers Federation.

No, we’re not running for office, we just wanted to give some constructive ideas to those who are. Of course if you happen to like any of the ideas, we urge you to call your favourite political party and tell them to consider it.

This three part series will discuss some of the policy initiatives we released in our platform; ideas ranging from taxation and spending to health care, the debt, justice matters, accountability and the environment.

In terms of easing the tax burden, we suggested moving towards a single 10 per cent income tax rate for both businesses and individuals. This would bring Saskatchewan in-line with Alberta’s straight forward 10 per cent tax system.

However, beyond simplicity, it would save Saskatchewan residents hundreds, if not thousands of dollars each year. Right now, Sask residents pay a provincial income tax rate of 11 per cent on earnings over $14,535 and below $40,919. One pays 13 per cent in provincial income taxes on their next $75,992 in earnings and 15 per cent on everything over $116,911.

This income tax measure could be supplemented by committing to a goal of increasing Saskatchewan’s basic personal exemption ($14,535) to the same rate as Alberta’s ($16,977) by the end of the next term in office. For those not familiar with the geeky term, the basic personal exemption is the amount of money you can earn before paying income taxes.

The other significant tax commitment we suggested political parties consider is to phase out school taxes all together. This would bring Saskatchewan in-line with Atlantic Provinces that don’t have school taxes. It would also help improve the province’s competitiveness with B.C. and Alberta; whose rates are much lower.

You’re probably wondering how the government could afford such measures. After all, it needs tax revenue to provide government services right?

First, one needs to remember that reducing tax rates often does not result in a reduction to government tax revenues. You see, when you leave more money in peoples’ pockets they buy more things and pay more in sales taxes. Businesses then hire more people and spend money on expanding their operations. As a result of more people working and paying taxes, and higher business profits, governments still get their share.

Consider that the Sask government has raised the basic personal exemption from $8,945 in 2008 to $14,535 in 2011; saving almost every taxpayer over $500. Those with dependent spouses saved even more.

At the same time, personal income tax revenue to the government is expected to increase from $1.844 billion in 2008-09 to an estimated $1.915 billion for 2011-12.

Another example would be Saskatchewan’s reductions to the business tax rate.

In 2005-06, the business tax rate was 17 per cent, bringing in $258 million to government coffers. After several cuts to the rate, it is now down to 12 per cent and business tax revenue is expected to bring in $1.1 billion to the government this year. 

In other words, both cases saw tax rates drop substantially, yet revenues increased. Those are numbers that all of the political parties in Saskatchewan can’t ignore.

Another way the government can afford lower tax rates is through smarter spending. Next week, we’ll explore ways the government can do a better job of spending your hard earned tax dollars.