EN FR

Same as the old boss

Author: David Maclean 2006/02/09
Premier Lorne Calvert shuffled his cabinet and put new faces in a number of important portfolios. Newly-minted Finance Minister Andrew Thomson has some tough decisions to make in the coming months - especially when it comes to school and business taxes.

Former Finance Minister Harry Van Mulligen's tenure was at best unremarkable and, at worst, bad for the province. In his time as treasurer, Van Mulligen oversaw an increase in the PST which was in direct contravention of the NDP's campaign promise to "continue lowering taxes." Spending under his watch ballooned by nearly $600 million in two years. He also completely ignored the recommendations of the Boughen Commission on K-12 Funding which would have dramatically reduced school taxes.

So the old "big shoes to fill" cliché doesn't exactly apply here. Thomson does, however, have much unfinished business to contend with. On the school tax front, the Premier has committed to cutting school taxes, saying recently to the media that "our work is not done."

Yes, this is just another promise coming from a government that seems capable of accomplishing everything except cutting school taxes. There are, however, indications that things might change.

Fighting for school tax relief isn't as lonely as it once was. The Saskatchewan Urban Municipalities Association and the Saskatchewan Association of Rural Municipalities are leading a big push for returning the provincial share of school funding to 60 per cent. It stands at around 40 per cent right now. There is almost universal consensus that school taxes need to be addressed. Even the government doesn't dispute that anymore.

Every time Premier Calvert says something like "the status quo is not on," or "our work on school taxes is not done" he ratchets up the pressure on his government to deliver. When the Canadian Taxpayers Federation dropped off 20,000 signatures calling for school tax relief at the legislature, Government Relations Minister Len Taylor hinted that some relief might come in the next budget.

All these hints, tips and acknowledgments add up to a commitment. With an election likely coming next year, Premier Calvert does not need another broken promise on his record. He has gone too far to turn back.

There is only one way to cut school taxes on property. The government has to fund education like nearly every other province in the country. Cutting school taxes by one third requires finding more than $200 million in the General Revenue Fund. Finding money in an already bloated budget is now Minister Thomson's job.

The Business Tax Review Committee's recommendations, which would make Saskatchewan a much more competitive jurisdiction in which to run a business, needs to be addressed this year.
Long gone are the days when the government actually defended its business tax system. The committee's report told it like it is - Saskatchewan has the highest business taxes in Canada and we're hurting because of it. Implementing the recommendations is only a matter of setting priorities.

We wish the new minister well in his endeavours as finance minister. We shall soon learn whether the new boss is the same as the old boss.



A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<