Response
to Report
“The critical issue is to begin the process now,” said Saskatchewan Real Estate Association executive vice-president Bill Madder. “We need a commitment in principle, and a timetable for action. With Mr. Boughen’s report in hand, the government has the opportunity to make curbing the property tax one of the key “change” milestones in its term of office.”
SREA says the property tax is not adequate to fund the
strong, well-financed school system
“The property tax is a regressive burden on families, and a tax on capital that inhibits investment and retards job creation. Changing it will create a large net benefit.”
The SREA warned the government of two pitfalls in pursuing the Boughen recommendations.
One pitfall is the risk that school taxes could creep back up after the Boughen reduction is implemented.
“The report proposes a $300 million injection of provincial money to cut school taxes 43%, but it does not address the issue of how to keep the benefit into the future. We must accompany the reduction with a cap on school taxes,” Mr. Madder stated.
The second pitfall is the idea that a reduction in one tax must be matched by an increase in another.
“REALTORS will not endorse an increase in sales tax, or any other tax, in connection with tackling the school costs issue”, said SREA executive vice-president Bill Madder. “The supposed need to shuffle taxes is a red herring.The record of our own province in the last decade demonstrates this fact.
Mr. Madder noted that over the last 10 years, the provincial personal income tax has been cut substantially, and so have the sales tax, the corporate capital tax, and the business income tax – yet revenue has actually increased.
“Tax is not a zero-sum game. Reducing taxes can be stimulative. We call on the province to phase in the property tax cuts and allow the economy to respond”, Mr. Madder said.
The SREA letter also called on Mr. Van Mulligen to
“recognize the needs of
“