REGINA: The Canadian Taxpayers Federation CTF) today applauded Premier Wall's announcement of substantial income tax relief and debt repayment.
"Not since the provincial tax reforms of 2000 have Saskatchewan taxpayers had so much to celebrate," said CTF Saskatchewan Director Lee Harding. "For years, the CTF has pressed for aggressive debt repayment and a substantial rise in the basic personal exemption. This summer, CTF supporters were especially vocal, since Premier Wall had asked for input regarding what to do with windfall revenues. This announcement is a victory for CTF supporters and a victory for all Saskatchewan taxpayers."
On October 21, the province announced that the basic personal exemption and spousal exemption would rise from $8,945 to $12,945. As well, the province has earmarked an additional $1 billion toward the provincial debt. By March 31 of next year, the provincial debt will have dropped from $6.8 billion to $4.2 billion, the lowest level since 1988.
The province will also increase its child tax credit by $2000 per child. This means that a working family with two children can earn $41,300 without paying provincial income tax. This is best in the country. PST rebates for lower income individuals is increased to $216, while eligible families could receive up to $600 per year.
"Broad-based tax relief is preferable to targeted tax relief. This means our applause is greater for the increased basic exemption and the debt repayment than for the other initiatives. Raising the basic exemption means every taxpayer will save $440. As well, paying off the provincial debt will lower its interest payments by $900 million over the next five years. This will leave more money available for tax relief or priority program spending," Harding explained.
"For the past three years, the CTF has called for the basic personal exemption to rise to $15,000 and for the 13 and 15 percent tax brackets to be eliminated. Today's announcement is a positive step in that direction," Harding said. "Although the province anticipates $1.9 billion will remain in its Growth and Financial Security Fund at the end of the fiscal year, volatile resource prices mean keeping this reserve is acceptable for now. Some cushion is also wise given the province's intention to significantly reduce property taxes, possibly by this spring."
