CTF launches petitions calling for lower personal and business taxes in Saskatchewan 

Click here for income tax petition / Click here for petition to lower small business tax

REGINA: The Saskatchewan office of the Canadian Taxpayers Federation (CTF) launched two new petitions today. One petition backs the call by EnterpriseSaskatchewan for a single tax rate of 10 per cent on personal and general business income in the province. Another petition calls for the province to reduce its 4.5 per cent tax on small business to 2.5 per cent.

“These tax reductions will attract new people to the province and they will leave more income for existing residents to invest in education, savings, and business ventures,” said Lee Harding, Saskatchewan Director for the CTF. “In other words, lower taxes, and not deficit spending, will create a real economic stimulus.”

Saskatchewan’s tax rates compare poorly with its western neighbours. Alberta taxes personal income at 10 per cent, while BC and Ontario have even lower rates at most income levels. Meanwhile,

Saskatchewan’s tax brackets are 11, 13, and 15 per cent.

Manitoba recently reduced its general business tax rate to 12 per cent, matching Saskatchewan’s rate. British Columbia has an 11 per cent rate, but will match Alberta’s 10 per cent rate by 2011.

On the small business side, Saskatchewan’s 4.5 per cent rate compares poorly with Alberta (3), British Columbia (2.5), and Manitoba (1). Manitoba will eliminate small business taxes entirely by December 2010, while BC intends to do the same by April 2012.

“The Saskatchewan Labour Market Commission expects the province will need 10,000 new workers every year from now until 2020,” Harding said. “Unless provincial tax rates are lowered, the province cannot hope to attract enough labour for its growing economy and aging demographic,” Harding said. “We saw what high taxes did to send our best and brightest elsewhere in past years and that cannot be allowed to happen again.”