Manitoba Progressive Conservative Leader Brian Pallister is promising more tax relief for voters, if they elect him April 19th.
Pallister has already pledged to lower the PST back to seven per cent. Today he announced a plan to eliminate “bracket creep” and work to raise the basic personal tax exemption.
Bracket creep is a term for government’s failing to automatically raise income tax brackets each year by the rate of inflation. Analysts and the Canadian Taxpayers Federation have long said it’s a sort of back door tax.
Most other provinces automatically raise their brackets to account for inflation. Pallister says he would start the process here within his first budget year.
“Bracket creep is kind of a nefarious way to over tax people, sneaking more money off the kitchen tables of Manitoba families,” he says.
Pallister says his government would also raise the basic personal exemption to get in line with inflation. He’s promising to work to bring it closer to the national average within his first term.
The basic personal exemption is the level where the government begins taxing income. In Manitoba, it’s just over $9,000.
“The Canadian average is approximately 2,000 higher,” says Pallister. “By comparison, Saskatchewan doesn’t start until 16,000 dollars.”
Pallister is not providing a cost for the promises, saying he’ll unveil a detailed financial plan on Friday morning.