Manitoba Votes 2016 - Tax structure

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Published on Friday, April 8, 2016

By Banner Staff

The Neepawa Banner

Question: This election, taxation seems to be a larger issue for voters. What is your opinion on the current 

structure, do you think any modifications should be made?

Name: Eileen Clarke

Home: Gladstone

Party: Progressive 

Conservative

Answer: Manitobans today pay among the highest taxes in Canada. With the Selinger NDP, Manitobans are paying more and getting less. Manitobans are taxed to the max.

Manitobans are trusting people.  We give our trust and we expect it to be given back through open, clean government.  

Sadly, that is not what we have today. What we have today in Manitoba is broken trust from a broken government. Promise after promise has been broken by this government. 

First, it lost its integrity and now, it has lost its way. This premier looked you in the eye and vowed he would not raise the PST.  He then did the exact opposite and took $1 billion from Manitoba families.  

First, he broke his promise not to raise the PST. Then, he and his NDP MLAs took away your right to vote on it.

Manitobans know the premier and his government have repeatedly broken their promises to balance the books. A string of broken promises that have doubled the debt of our province in just eight years and resulted in the first downgrade in Manitoba’s credit rating in three decades. This means more money for bankers in Toronto and less for services here in Manitoba.

What Greg Selinger is not telling you is that today’s debt is tomorrow’s taxes. Reining in wasteful government spending helps keep taxes low for Manitoba families. Keeping government affordable means we can focus spending on where it matters most.

Under the Selinger NDP, the average Manitoba family has paid more than $3,300 in additional income taxes when compared to our neighbours in Saskatchewan

The Selinger NDP is the only government west of the Maritimes that has refused to increase its tax brackets every year to match the rate of inflation.

This means many hard-working Manitobans find themselves automatically bumped into higher tax brackets and forced to pay higher rates of income tax.

We need a new government based on Manitoba values.  A government that reflects those values in everything it does. Values like trust, compassion, common sense, inclusion and teamwork.

A new Progressive Conservative government will eliminate ‘bracket creep’ to leave more money in the hands of working families.

We will begin to raise the personal exemption to provide real and immediate tax relief for all Manitobans.

The Selinger NDP believes that Manitobans should work harder for government; we believe that government should work harder for Manitobans.

That is the difference between our new Progressive Conservative team and the tired Selinger NDP government.

We will lower the tax burden on Manitoba families. This is part of our better plan for a better Manitoba.

Name: Damian Dempsey

Home: Arden

Party: Independent

Answer: Let’s start at the beginning: Taxation should be used by government to fund essential programs like health care, education and infrastructure. Its duty is only to levy the minimum amount to fund essential programs and ensure that taxpayers get value for their money. Also, tax structure needs to encourage enterprise, hard work and initiative. 

Unfortunately, many governments – the current Selinger administration a case in point – squander taxes collected from the public on unwise uses, such as subsidies for political parties and severance packages for political cronies, as well as on ill-conceived schemes, such as road signs promoting “Sustainable Growth, Good Jobs”, costing taxpayers around $2 million of their hard-earned money. This government has neglected the core programs that should be targeted for spending. They have also consistently spent more than they have taken in through tax and other revenues; for 2015-16 debt servicing alone costs $842 million—enough to build eight new hospitals!

An independent audit should be done of all government spending, with recommendations for savings, efficiencies and improvement in delivery of public services.  In terms of tax structure, let’s look at the education tax, payroll tax, basic personal exemption, the proposed carbon tax and “bracket creep”.  

The current way of funding education– through a tax on homes, businesses and farmland– is unfair, inefficient and levied regardless of ability to pay. We all know that property and land values are rising, but property owners are paying higher taxes because of those values without benefitting from them unless they are selling. That puts increasing stress on homeowners, farmers and small businesses. It would make more sense and be fairer if it were based more on income. When education is adequately and wisely funded, every individual benefits from a well-educated population. It should not be funded by land or property owned.

The payroll tax, at 4.3 per cent, is rightfully hated by small businesses in Manitoba. It should be eliminated, as it discourages business owners from hiring and penalizes employers for paying higher wages. As other aspects of a revised tax structure begin to encourage small businesses to flourish, income can be generated off growing number of employees and profits, better for all involved.

The basic personal amount before tax is paid is currently just over $9,000 in Manitoba. That compares unfavorably with other provinces—it is $15,843 in Sask. and $18,451 in Alta. It should be adjusted upward. 

I would oppose a carbon tax, as it would adversely affect farming and business and all residents of Agassiz. There are proven ways to remove carbon from the atmosphere, but a carbon tax is not one of them. 

“Bracket creep” occurs when wages rise due to inflation and people are pushed into a higher tax bracket even though they are not really getting any richer. Government should have an index-linked tax structure that clarifies what real income rise is as opposed to the artificial hike caused by general inflation.

In conclusion, as MLA, I would support making the tax system simpler and fairer, while also ensuring adequate funding for essential services such as health care, education and infrastructure.