NDP should raise tax, get out of the way

Hey there, time traveller!
This article was published 02/06/2012 (5193 days ago), so information in it may no longer be current.

A few years ago I was invited to speak to the Winnipeg Chamber of Commerce and used the opportunity to talk about provincial infrastructure in the context of how we tackle big public-policy issues.

I made note of the fact that as a province everyone seems to agree — on all fronts — that we are falling further and further behind in fixing the things that need to be fixed. Furthermore, that we all want the fixes to happen.

This is actually an excellent starting point — to have virtually everyone seeing the same problem and agreeing it needs to be solved.

The big sticking point seems to be on how this issue should be paid for.

I argued the provincial government should add two points to the provincial sales tax in order to establish an aggressive infrastructure program and to accelerate the process.

At the end of my address, I was shocked to receive a standing ovation from the audience.

My call, however, wasn’t just for a tax increase. It was based on the idea the increase would be designated specifically as an infrastructure levy such that the proceeds of the tax could be transparently traced both on the way into government as well as how, when and where it went out.

It was also premised on the condition the special levy would have a sunset clause such that the tax would automatically end after a specified period of time unless the provincial legislature, on the basis of a super-majority vote, decided to extend the levy.

In other words, the government of the day alone couldn’t continue the tax without the support of the opposition parties. The possibility of a referendum in this regard was also raised as a means of allowing Manitobans at large to make the decision.

Finally, the idea was that an independent infrastructure commission be established to receive the new money, determine the list of infrastructure projects to be undertaken, allocate money according to the priority of those jobs and report quarterly to Manitobans on its progress.

It seems after a few more years slipping by and further degradation of our provincial capital assets and infrastructure, the coalition of supporters for an increased sales tax is growing.

Joining the business community now is the Manitoba Federation of Labour, and this ought to be a clear signal to government that the people at large want something done.

Taxpayer advocates argue the government has plenty of money to accomplish the infrastructure fix if it only spent its revenue more wisely.

This may very well be a legitimate perspective. But the reality is this government seems content with the way it’s currently operating and it is going to be the government for the next three years or so.

In other words, it’s unlikely the government is going to suddenly quit spending approximately $200 million where it’s already been allocated to various activities and shift that money to infrastructure.

We can’t afford to wait to see if Manitobans decide to change the government in the next election to start tackling a problem that gets worse by the day.

What we need to do is keep prodding Premier Greg Selinger to take a bold step.

It’s always risky for a government to raise taxes. I’m astonished that I find myself in agreement with the very idea of tax increases.

But at some point we have to collectively decide either we want infrastructure fixed in a comprehensive way or, if not, then we have to stop griping about it and suffer the consequences.

I want it fixed, and like it or not, we have to pay for it. The levy I and others including this newspaper are proposing is a consumption rather than an income tax which, at least for discretionary spending, allows taxpayers to effectively choose whether to make a purchase or not and pay the tax.

Taxpayers would also feel a lot better about doing this if such a plan also included the transparency and accountability I suggested at the chamber of commerce because we’d have the certainty of knowing the dollars are being spent for their intended purpose and not disappearing into general revenues.

I’d like to add my voice to the messages the premier is getting: It’s action time, and while there will be the usual grumbling, this is when Manitoba requires a bold initiative.

 

David Asper is a Winnipeg businessman and a professor of law at the University of Manitoba.