Daily BrewHigher sales tax driving Manitobans to move next door to Saskatchewan
God bless the Canadian Taxpayers Federation for keeping us on our toes about governments' continued claim on our wallets, but I'm dubious about their latest pronouncement sales taxes are driving Manitobans to move next door to Saskatchewan.
According to the tax watchdog group, Manitoba has had a net loss of almost 1,000 people who've moved west across the line due to the two percentage-point difference in the two provinces' sales taxes, The Canadian Press reports.
Saskatchewan's PST is set at five per cent (plus, of course, five per cent GST), while Manitoba's provincial bite at the cash register is seven per cent. And it's poised to rise to eight per cent at the beginning of July after the NDP's most recent budget was tabled in April.
[ Related: Manitoba Tories call PST increase a 'punishment' ]
The taxpayers federation has set up a petition urging the government to cancel the increase and organized a rally in front of the legislature in Winnipeg on May 2 that attracted hundreds of people, according to CBC News.
Colin Craig, the federation's Prairie director, accused Premier Greg Selinger of breaking a campaign promise.
“The premier promised during the election that he wouldn’t raise taxes," he said in a post on the federation's web site before the rally. "We have to stand up and hold him accountable for that commitment.”
Now Craig says the reason for the net migration of a thousand people from Manitoba to Saskatchewan in the last five years is that people want to save money.
“Saskatchewan has to be loving these numbers,” Craig, told Metro News last week, referring to Statistics Canada figures showing the flow reached a five-year high in 2011-12 with 495 Manitobans leaving for Saskatchewan's ostensibly greener pastures.
“Talented Manitobans are taking their money out of the Manitoba economy, and plunking it down in Saskatchewan.”
Manitobans pay more in personal income taxes, he added.
Saskatchewan Finance Minister Ken Krawetz piled on last month, suggesting his province is open to new residents or businesses seeking lower taxes.
“If people in Manitoba are unhappy with the amount of taxation they’re paying and there are job opportunities here, maybe there will be a positive reaction to that,” he told Metro News.
I don't doubt higher taxes are a factor in some decisions to move home and/or business. They may even be the deciding factor.
[ Related: Albertans would overwhelmingly oppose sales tax in referendum ]
But the main attraction is probably Saskatchewan's vibrant economy, which the Conference Board of Canada predicts could overtake Alberta as the fastest-growing in the country this year.
According to the board's forecast, Saskatchewan's economy, fuelled by potash mining and energy development, could grow by three per cent in 2013-14, compared with Manitoba's projected growth of about two per cent.
This Statistics Canada chart shows Saskatchewan was the only province that experienced a net in-migration from other provinces in 2011-12.
Boosting sales taxes won't endear the government to those contemplating a move but getting a three per cent break at the till hardly seems enough reason to up sticks.
Here's a chart of sales taxes across the country (not including Manitoba's planned increase).
