CTF group wary of tax increases in Saskatchewan
REGINA The Canadian Taxpayers Federation says higher taxes are the last thing Saskatchewan needs in the provincial budget to be tabled Wednesday.
But Premier Brad Wall has said they will be there as part of the government’s three-year plan to balance the books.
Todd MacKay, the federation’s prairie director, says revenue is down from income, business and consumption taxes, and raising them doesn’t necessarily mean more money coming in.
“The reason for that is pretty clear — folks have less money,” MacKay said Tuesday.
“So just increasing the tax burden on Saskatchewanians, when they’re already down, is a pretty hazardous way to fix a deficit problem. It’s not taxpayers’ fault for paying too little tax.”
The Saskatchewan government is facing about a $1.3-billion deficit.
Wall said Monday that some of the shortfall will be made up with tax increases. He said there will be a shift away from income taxes and toward consumption taxes. The government is also looking at the education portion of property taxes, provincial sales tax exemptions and the PST in general.
MacKay said the government should focus on spending.
“Families and businesses started trimming spending in Saskatchewan a couple of years ago,” he said.
“The government hasn’t done that yet. In fact, spending has continued to go up. They’ve got to recognize the reality: there’s less money in Saskatchewan. You’ve got to spend less money.”