Tax cut is good news, but Manitobans need full relief now
The Canadian Taxpayers Federation supports the income tax cut announced in Budget 2023 but is calling on the government to speed up its timeline and immediately provide the full relief.
“Today’s tax relief is good news and will let Manitobans keep more of their money when it’s needed the most,” said Gage Haubrich, Prairie Director of the CTF. “But families are struggling to afford groceries today, so why is the government waiting until after the election to provide the full tax cut?”
This year, the government is increasing the tax-free portion of income from $10,145 to $15,000. This will save taxpayers up to $524.
In 2024, the government is providing further tax relief by adjusting income tax brackets. The lowest tax rate will then apply to the first $47,000 of income, and the second rate will apply to income between $47,000 and $100,000. That means more of Manitobans’ money will be taxed at lower rates.
Combined, both income tax changes will save an individual taxpayer up to $1,399 in 2024.
The deficit is expected to be $363 million in 2023. The debt is projected to be $31 billion by the end of the year. Debt interest charges will be $1.3 billion this year, costing $906 per Manitoban.
“The government needs to balance the budget and stop throwing more debt on the backs of future Manitobans,” said Haubrich. “More than $1 billion can’t be used to improve services or lower taxes this year because it’s going to the bond fund managers on Bay Street to pay interest charges on the government credit card.”
Spending is increasing from $19.9 billion last budget to $21.9 billion this year. Budget 2023 includes millions spent on corporate welfare, including $50 million to a venture capital fund, $35 million through so-called economic development loans and $10 million to the Manitoba Mineral Development Fund.
“Politicians shouldn’t be playing investment banker with taxpayers’ money,” said Haubrich. “Instead of wasting money on corporate welfare, the government should balance the budget and provide the full tax relief immediately.”