WhatFinger

Provincial elections, debt, taxes

Grill Your Local Candidate


By Canadian Taxpayers Federation Colin Craig——--October 13, 2011

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If a candidate in the provincial election knocks on your door tonight, have you thought about what you might ask him or her?
If you haven’t, here are some questions you might consider asking. Think of the process as like hiring someone for a job. First, why not ask a big picture question – what do they think is the role of government? Should the government just deliver core services like health care, education, and policing? Or should it branch off into more questionable activities such as funding riske arts exhibits, subsidizing businesses and building football domes? And when it comes to providing services for the public, does your candidate support tendering the work out if it can save taxpayers money? Or does he or she believe the government’s role is to run major sectors of the economy?

This is an important one to ask, because governments across the world have shown they can save taxpayers money and improve results by partnering with the private sector. So why would it cost the government more? Because not only are salaries often higher in government, but governments benefits are often much higher too. Consider Statistics Canada data that shows in 1977 approximately 71 per cent of government employees in Saskatchewan had workplace pensions versus 26 per cent for everyone else. Today, approximately 100 per cent of government employees in Saskatchewan are now covered while coverage for everyone else remains at 26 per cent. Perhaps ask your local candidate what they will do about the growing pay gap between government workers and everyone else? Let’s not forget about taxation. While tax rates are much better now than a decade ago, there is still work to do. For example, Saskatchewan’s personal income tax rates of 11, 13 and 15 per cent are still higher than Alberta’s 10 per cent single rate. Beyond the actual tax rates, Saskatchewan taxpayers also start paying income taxes before Albertans do. In Alberta, taxpayers pay provincial income taxes on earnings over $16,977. Yet in Saskatchewan, taxpayers start paying provincial income taxes once their earnings hit $14,535. It’s true the government has done a really good job at closing that gap over the past few years, but will it continue to be a priority? Further, Saskatchewan’s school taxes are much higher than Alberta’s and Sask’s small business tax rate (2 per cent) is higher than Manitoba’s rate of 0 per cent; yes, Manitoba recently eliminated its small business tax altogether. What does your candidate think of these gaps? Finally, be sure to grill your candidate about general revenue fund (GRF) debt. This is debt for services delivered years ago - just like putting a dinner on your credit card debt. This debt has been going down, but does your candidate support paying it off as a priority? It should be. After all, paying off the debt will allow the government to free up $420 million in annual interest costs; nearly enough savings to wipe out school taxes ($580 million in 2011.) The barbecue may be put away for the season, but if you do one last grilling this year, reserve it for the candidate that knocks on your door. Now is the time to hold them accountable. Colin Craig is the Prairie Director for the Canadian Taxpayers Federation

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Canadian Taxpayers Federation——

Canadian Taxpayers Federation


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