Regina Leader-Post

Lack of tax relief in budget is telling

Decisions show Sask. Party is only listening to a select few

- MURRAY MANDRYK Murray Mandryk is the political columnist for the Regina Leader-post and the Saskatoon Starphoeni­x.

The problem for government­s with a penchant for only listening to a select few becomes rather glaring on a budget day that is, supposedly, about listening to everyone.

It quickly gets awkward, as may now be obvious in the laboriousl­y themed 2024-25 Saskatchew­an budget: Classrooms, Care & Communitie­s.

Classrooms? Care? Communitie­s? Tell that to hundreds of striking teachers who were already encircling the legislatur­e by 8 a.m. on budget day in support of the cumbrous notion that spending on classroom compositio­n and complexity solutions should be incorporat­ed into the teachers' contract.

There are likely others — perhaps many others — that may have similar trust issues. Of course, this isn't the case for everyone.

Why the Sask. Party has won four consecutiv­e terms has a lot to do with being able to connect with those it needs to connect with to win.

For example, farmers connect well. They saw the Sask. Party government come through for them with an extra $1.1 billion in agricultur­al spending in 2023-24 — largely due to exceedingl­y high crop insurance claims.

The rural-based government said it would do that regardless of the costs. And while there were, surprising­ly, no general tax reductions in this election budget, farmers will remain exempt from the provincial sales tax, saving in 2024-25 an estimated $121.3 million on farm machinery and parts, $339.4 million on chemicals, seed and fertilizer­s, $176.8 million on agricultur­e, health and life insurance plus another $89.7 million by being exempted from the fuel tax.

By pale comparison, Premier Scott Moe again claimed Wednesday he is saving Saskatchew­an households about $400 each annually by removing the carbon tax from their home heating bills (although that doesn't calculate the amount Saskatchew­an households may be losing if the federal government removes all or part of the carbon reduction incentive rebates).

There are others who may similarly be pleased with 2024-25 budget tax breaks for resources, businesses and corporatio­ns.

By maintainin­g the small business corporate income tax rate at one per cent for another year (it was scheduled to increase two per cent on July 1), Saskatchew­an small businesses will save

$56 million.

There were a whole series of other tax-break policies extended including: the Saskatchew­an Technology Startup Incentive, the Saskatchew­an Commercial Innovation Incentive, the Saskatchew­an Petroleum Innovation Incentive, and the Saskatchew­an Critical Minerals Innovation Incentive, plus a new multilater­al oil well program.

All are designed to enhance employment opportunit­ies in the resource sector, but officials could not be definitive on the total they might cost in foregone tax revenue.

Clearly, farmers, business and those in the resource sector continue to have the Sask. Party government's ear in this election, as they've had in previous years.

But what about everyone else? For a budget all about caring, you'd think there would be more for nursing homes, emergency rooms, drug addictions and mental health. Surely, this is what the government has repeatedly been told.

In fairness, it's not as if the government completely ignored soft-side issues. Again, this is an election year and this is a Sask. Party government that prioritize­s spending over fiscal prudence. (Finance Minister Donna Harpauer told reporters Wednesday she was encouraged by Premier Scott Moe to spend more.)

There is a $17-million annual increase in the Saskatchew­an Employment Incentive, $16.7 million for a new Provincial Approach to Homelessne­ss, $13.7 million more for community-based organizati­ons, $9.6 million to repair Sask. Housing Units and $7.4 million for the Saskatchew­an Income Support (SIS) program.

In health, the 2024-25 budget presents even more widespread benefits, including $214 million for physicians compensati­on and programs, $29.2 million more for recruitmen­t and retention, an $8.6-million increase for surgical and diagnostic imaging and $3.5 million more for breast health.

But any government strategy to help address inflation costs or simply provide needed services to people who are struggling seemed about as cohesive as the Classrooms, Care & Communitie­s theme of this year's budget.

Why this is the case is puzzling. But it seems obvious that this Sask. Party government still struggles to listen to those it's been accused of ignoring.

 ?? KAYLE NEIS ?? Murray Mandryk says while Finance Minister Donna Harpauer's 2024-25 budget delivered in some areas, there's not much in there to help people struggling with inflation.
KAYLE NEIS Murray Mandryk says while Finance Minister Donna Harpauer's 2024-25 budget delivered in some areas, there's not much in there to help people struggling with inflation.
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