REGINA: The Canadian Taxpayers Federation (CTF) welcomes the long-overdue business tax reform in Budget 2006, but is raising alarm bells about government spending.

The budget includes sweeping changes to Saskatchewan's business tax structure, including eliminating the corporate capital tax by 2008, reducing the corporate income tax rate from 17 to 12 per cent and increasing the small business tax threshold to $500,000.

All three were recommendations made by the CTF to the Business Tax Review Committee.

"It's great to see the government implementing that will help Saskatchewan businesses compete," said CTF Saskatchewan director David MacLean. "But, it has taken way too long for this to happen. Does the government deserve praise for finally doing the right thing on business taxes Had they acted 10 years ago Saskatchewan would be in a much better position today."

Budget 2007 is one of the biggest in Saskatchewan history and includes millions for ethanol programs, film tax credits, and the meat industry. At $3.2 billion, the health care budget is equivalent to the total amount collected from PST, personal income tax, and the tobacco taxes combined.

"There isn't one word in this budget spared for health care reform," said MacLean. "Health spending amounts to half of government program spending and it's growing by 10 per cent a year. Why is the government not tackling this issue."

"The level of spending is not sustainable. Government spending is rising twice as fast as the incomes of average taxpayers. If oil prices swing lower, Saskatchewan is unnecessarily at risk," concluded MacLean.