PST-on-insurance divides leadership hopefuls
But Sask. Party candidates know that change is needed, writes Todd MacKay.
Some Saskatchewan Party leadership candidates will take the PST off insurance premiums, and some will review the issue.
The PST-on-insurance issue is now a dividing line in the campaign to replace Premier Brad Wall.
This is a definitively doorstep issue. The PST is adding hundreds of dollars of costs for individuals who protect their homes and families with insurance. It’s adding thousands of dollars, or tens of thousands of dollars, in costs for businesses providing health insurance for their employees and farmers managing unavoidable risks of drought and hail. People want to know what the next premier will do with their insurance bills.
The Canadian Taxpayers Federation asked each of the Sask. Party candidates for their policies on the PST-oninsurance issue. The answers fall into two basic categories: Those who will take the PST off insurance and those who will review it. Here’s where they stand.
Tina Beaudry-Mellor is clear: She would take the PST off all insurance premiums.
“We should encourage responsible behaviour, not discourage it,” states Beaudry-Mellor. “Insurance products are forms of savings, taken out to protect oneself and one’s family from hardship. Pushing individuals and families into making less responsible financial security decisions because of rising costs is not helpful in keeping overall government expenditures in our human services ministries down.”
What Beaudry-Mellor doesn’t have is a clear plan to balance the budget on schedule. Deficits are delayed taxes. So, while she would take the PST off insurance, she would increase the provincial debt and the risk of future tax hikes.
Scott Moe would take the PST off most insurance.
“I am committed to reinstate the PST exemption on crop, life, accident and health insurance,” states Moe. “My campaign also provided a framework on how we will recover the revenues lost through reinstating these PST exemptions.”
Moe calculates his policy would save Saskatchewanians more than $120 million on their insurance bills, and he says he’ll stay on track to balance the budget on schedule by reducing the size of the bureaucracy by five per cent and delaying the promised business tax cut.
Gord Wyant occupies a kind of middle ground. He promises to take the PST off insurance premiums, but he’ll put other taxes on investments and insurance premiums.
“We will recoup approximately $120 million by slightly increasing the pre-existing Insurance Premium Tax and charging PST on Management Expense Ratios on mutual funds,” states Wyant.
Ken Cheveldayoff would seek advice before establishing a policy.
“We will commit to establishing an expert panel to examine Saskatchewan’s sales tax base within 60 days of the leadership vote,” stated Cheveldayoff. “The mandate of that committee will pay particular attention to the issue of tax on insurance in Saskatchewan.”
Alanna Koch is also taking a studied approach.
“I have heard significant concern about PST on insurance premiums,” she stated. “If I am fortunate to be chosen as premier, I have committed to conducting a review of the PST on insurance.”
Whether they’re promising to reverse the decision to slap the PST on insurance premiums or promising to study the issue, none of the people hoping to become premier are defending the decision. It was clearly a mistake. The only question is how, and how soon, that mistake will be corrected.
For Saskatchewanians paying insurance bills that are hundreds or thousands of dollars higher than last year, the policies offered regarding the PST-on-insurance issue will be key when they decide who should be the next premier.