The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Effective Jan. 1, Manitoba families and businesses will receive a $51 million income tax break while offenders will assume a greater responsibility for paying for the administration of justice, Finance Minister Greg Selinger has announced. "Despite a challenging budget, we are continuing to take steps to keep Manitoba's taxes affordable, fair and transparent," Selinger said. "Manitoba is one of only two provinces to be reducing taxes, balancing the budget and paying down the debt." Tax cuts effective Jan. 1 include: a $39 million reduction in personal income taxes; and a $12 million income tax reduction for Manitoba business. In total, Manitobans will save $302 million annually in personal income and property taxes since 1999-$220 million in personal income tax reductions introduced in the 2000 to 2003 budgets plus $82 million in tax savings as a result of the $150 increase to the Education Property Tax Credit and reductions in the Education Support Levy. On Jan. 1, the middle bracket tax rate will be reduced from 14.9 per cent to 14 per cent. For businesses, there will be $12 million in additional tax relief in 2004. The decrease in the general Corporation Income Tax rate from 16 per cent to 15.5 per cent is the third of four planned decreases that will result in a rate of 15 per cent by 2005. This reduction will save Manitoba businesses $11.6 million in 2004 and $46.4 million annually when fully implemented. Changes to small business taxes include another increase to the Corporation Income Tax small business threshold, from $320,000 to $360,000. Effective Jan. 1, a new $30 Justice Services Surcharge will be applied to convictions for all provincial offences, municipal bylaws and federal tickets. This surcharge is expected to generate approximately $6.7 million annually beginning in 2004-05. It will not apply to parking tickets. "By realigning service fees in the department of justice and increasing some provincial fines, a greater responsibility for paying for justice is placed on offenders, not average law abiding taxpayers," Selinger said. "The alternative is to follow the route taken by other provinces and cancel tax cuts. We are going to keep our promises and keep our tax cuts." In Manitoba, justice revenue from fines and fees have not kept pace with the level of services provided by the department. Currently, the department of justice recovers only 10 per cent of its costs through fines and fees. To improve deterrence, provincial fines and fees will also be increased and are expected to generate approximately $1.7 million in revenue. "Deterrence is an effective way to encourage safe behaviour, and this will help save lives," said Attorney General Gord Mackintosh. "In the last five years, we have significantly increased services to victims, prosecutions and police," said Mackintosh. "However, we need to maintain the balance between the portion of these services funded by taxpayers and the portion funded by those who do not abide by the law." "Those who break the law should be responsible for paying more for the administration of the law. Obey the law, and you won't pay."
