Corporate Income Tax Rates (Western Canada) by cut16095


									             CFIB                                 NEWS RELEASE
101-2400 College Avenue, Regina, SK S4P 1C8 (306) 757-0000 FAX: (306) 359-7623

FOR IMMEDIATE RELEASE: Tuesday, March 15th, 2005


Regina – In preparation for the upcoming March 23rd provincial budget, the Canadian
Federation of Independent Business (CFIB) released today its small business budget
recommendations for 2005. Saskatchewan’s small- and medium-sized business community will
be watching closely to determine whether their priorities are addressed.

“Over the past year, the Saskatchewan economy has again faced some significant challenges
that are impacting small- and medium sized business owners. From increases in the provincial
sales tax (PST), property taxes, continued fallout from the discovery of BSE, high insurance
rates, utility rate increases, and another tough year in agriculture, it is difficult for Saskatchewan
business owners to succeed,” said Marilyn Braun-Pollon, CFIB’s director of provincial affairs for
Saskatchewan. “It is imperative for tax relief to be included in the upcoming provincial budget to
allow small- and medium-sized firms to not only hold their own, but grow and prosper, creating
employment and investment in Saskatchewan’s communities.”

CFIB presented its 2005 pre-budget recommendations to Finance Minister Harry Van Mulligen,
which were based on survey data collected from CFIB’s 5,250 Saskatchewan members. Among
the short-term recommendations, CFIB called for the following:

•   Corporate Income Tax Relief: Given the recent B.C. and Manitoba budgets which
    continued to address their corporate income tax levels, CFIB said the province cannot ignore
    the fact that Saskatchewan’s corporate tax rates are falling behind other more competitive
    jurisdictions. CFIB recommended the government live up to its election commitment to raise
    the small business threshold from $300,000 to $400,000, as well as embark on a three-year
    strategy to reduce the small business rate from 5 to 2 per cent.
                   Corporate Income Tax Rates (Western Canada)
                                  (upon full implementation)

          Corporate         Saskatchewan          Manitoba           Alberta              BC

         Under $300K               5.0                4.0               3.0              4.5

         $300 -$400K              17.0                4.0               3.0              4.5

          Over $400K              17.0               14.0              11.5              13.5

                                                - more -

•   Property Tax Relief: While the government’s $110 million in property tax relief is a small
    step in the right direction, CFIB recommended the government introduce a long-term plan to
    reduce Saskatchewan’s high level of education taxes. CFIB reminded the government that,
    on average, Saskatchewan businesses already pay two times more in school taxes than
    similarly assessed residential properties.

•   Personal Income Tax Relief: CFIB recommended the government introduce a plan to
    further increase basic and spousal tax credits over time to reduce the burden on low-income
    families as an alternative method to increasing the minimum wage, as well as automatically
    index Saskatchewan’s personal income tax brackets to inflation.

•   Provincial Sales Tax Rollback: CFIB told the Minister of Finance that the one point
    increase in the PST had a direct negative impact on business confidence. Given the
    government’s improved financial picture, small business owners are even more convinced
    that the PST increase was not necessary. CFIB recommended the government rollback the
    PST increase that was announced in the 2004 provincial budget.

•   Low Cost Regulatory Reform Initiatives: CFIB recommended a number of low budget
    initiatives such as eliminating the $50 corporate filing fee, and re-introducing the PST rebate
    on livestock and horticulture building supplies and make permanent the program.

•   Spending Restraint: CFIB recommended government review all departmental spending to
    assist in balancing the budget by re-allocating existing resources to priority areas (health,
    education, highways and agriculture). For example, a 3 per cent reduction in all
    departmental budgets (other than priority areas) would save the province approximately

“In order for the province to have the financial resources to pay for important priorities like
health care, education and highways, you need a vibrant economy. CFIB hopes the upcoming
provincial budget will include the much needed tax relief that will help grow Saskatchewan’s
economy and tax base,” concluded Braun-Pollon.

                                              - 30 -

         CFIB’s pre-budget submission is available at
         For further information please contact Marilyn Braun-Pollon at (306) 757-0000

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