There is a
sketch at the back of the provincial budget that shows how a family fairs in Manitoba as compared to other provinces. It’s a family with two kids and both parents working to earn a combined $76,000 per year. Let’s call this family the Reimers.
The Reimers’ combined provincial income tax bill in Manitoba is $5,405. They’ll pay another $1,834 in provincial sales tax. That’s a total of $7,239.
If the Reimers move to Ontario, their provincial income tax bill will drop to $3,152, but the provincial sales tax will hit them harder at $2,574. The Ontario total is $5,726. That means the Reimers’ provincial tax bill comes down by $1,513 if they move to Ontario.
If the Reimers move west to Saskatchewan, they’ll pay $3,064 in provincial income tax. The provincial sales tax will cost them $1,007. Their total provincial tax bill in Saskatchewan is $4,071. That’s $3,168 that the Reimer family can keep in their pockets if they move to Saskatchewan.
Picture those savings for moment. If the Reimers move to Ontario it will be like finding $30 in their mailbox every Friday. If they move to Saskatchewan, that weekly welcome bonus doubles to $60. That’s money they could use for a family night out or a few extra mortgage payments every year.
It’s important to remember that these are the Manitoba government’s own numbers. This isn’t propaganda produced by Ontario or Saskatchewan. The facts are simple: the Reimer family pays more tax in Manitoba.
Now, the Manitoba budget goes on to blur the picture by adding factors such as mortgage costs and car insurance. But families have many options when choosing homes and cars. The Reimers could choose a riverfront two-story in Winnipeg with a Lexus in the driveway or a bungalow in Morris and a used minivan – it’s up to them. But taxes are not optional.
The Manitoba government does have a point when it comes to utility costs. The Reimers’ utility bill in Manitoba would be $2,742. In Ontario it’s $3,684 and in Saskatchewan it’s $3,515. Those numbers are hard to confirm, but a similar household sketch in the Saskatchewan budget suggests cheap Manitoba Hydro accounts for about
$500 of the difference.
That’s almost certain to change. Hydro is currently asking for a
rate increase of 3.95 per cent. In fact, Hydro plans to increase rates by 3.95 per cent every year until 2024. By that time, rates will have increased by
42 per cent, but even then Hydro says it will still lose money. Bottom line: the Reimers shouldn’t count on low power bills.
Then there are the deferred taxes. The Manitoba government is borrowing hundreds of thousands of dollars every day. There is only one source of revenue the government can use to pay it back: taxes. The reality is that today’s government debts are tomorrow’s deferred taxes. When those debts eventually become taxes the Reimers and their kids need to be prepared to carry that added burden for decades.
The provincial economists have painted a picture of the Reimer’s financial future in Manitoba. Now they have to make some choices. They can’t turn a blind eye to heavy taxes and soaring debt, but living here is about more than money. It’s home. Home is a place worth fighting for, but they have to decide to stand up and demand better in Manitoba.
Todd MacKay is the Prairie Director for the Canadian Taxpayers Federation
