WINNIPEG, MB: Today the Canadian Taxpayers Federation (CTF) presented recommendations to the provincial government's budget consultations. The CTF is calling on the province not to raise taxes; hold the line on spending; and, reform the MLA pension plan.
"Manitobans can't afford to pay more taxes so the government can't fix its financial problems by reaching deeper into taxpayers' pockets," said Todd MacKay, Prairie Director for the CTF. "With an operational deficit of nearly a billion dollars, the government simply cannot afford to increase spending--at minimum it needs to hold the line.
"Multi-billion-dollar pension liabilities need to be addressed and the first step is for MLAs to lead by example and reform their own pension fund so that payouts reflect contributions."
First, the CTF is recommending that the provincial government should not increase taxes. The average family in Manitoba already pays about $3,300 more in provincial taxes than they would if they lived in Saskatchewan. Even the advantage of low-cost electricity is being quickly eroded by rising rates. Raising taxes would make the province increasingly uncompetitive.
Second, the CTF is recommending that the provincial government hold the line on spending. If Manitoba holds spending flat for a year while the economy continues to grow at a modest pace, the CTF calculates the operational deficit will be cut in half to $454 million.
Third, the CTF is recommending that MLAs reform their own pension plan. For most Manitobans, the amount the can take out of a retirement fund is directly related to the amount they save, but MLAs receive defined benefits regardless of how much money is in the fund and taxpayers are liable for any shortfalls. The CTF is calling on MLAs to establish a defined-contribution pension plan for themselves.
The CTF's full budget recommendation is available here: http://www.taxpayer.com/media/MBBudSub10-16.pdf.
