A reduction in personal income taxes and no change to the PST, along with improved health care funding, are the main points Weyburn-Big Muddy MLA Brenda Bakken will be looking for in the provincial budget next week.

Finance Minister Eric Cline will bring the budget document down in the Legislature on Wednesday, March 29, a month after the federal government released their budget for 2000. This will push back the dates municipal councils, health district boards and school boards will be able to complete their budgets for the year.

The most-anticipated aspect of the provincial budget will be how the government deals with the Vicq report on the provincial income tax system. Among other things, the report from Professor Jack Vicq's tax review committee is proposing to reduce personal income taxes, and to reduce the provincial sales tax while expanding what the goods and services the tax will apply to.

"We firmly believe we need a reduction in income tax, but we do not support expanding the sales tax. What's the point of reducing the tax on one side and increasing it on the other? It would be so widespread it could be increased in the future, which has happened in the past," said Bakken.

The authors of the Vicq report say their recommendations to cut income tax would cut revenues to the government by $430 million, if the report was implemented in full. As the government has committed to a $200 million reduction in income taxes, there would be a $230 million shortfall which could be made up by broadening the base the sales tax applies to.

Among the controversial aspects of expanding the PST would be including areas not currently taxed, such as restaurant meals, car and home insurance, children's clothing, power and natural gas bills, car repairs, non-prescription medicine, tickets for entertainment events such as movies and sporting events, and funeral services.

Bakken was critical of the addition of the PST changes to the Vicq report, saying there wasn't much analysis done as to the true impact lowering and expanding the sales tax would have on the economy.

"Before the election campaign, we had (our proposal) analyzed on reducing taxes, and it can happen within a balanced budget," said the MLA, adding there will be no benefit to Saskatchewan residents to broaden the tax.

The Saskatchewan Party released the results of a poll to indicate the public backs their position. The poll showed 82 per cent of the province's residents support the proposed tax changes, but 81 per cent oppose expanding the sales tax.

"Other provinces and the federal government are lowering income taxes without increasing sales taxes. Why does the NDP government think it can't be done in Saskatchewan? Saskatchewan people are demanding cut taxes now to stem the tide of people, businesses and jobs out of the province," said party leader Elwin Hermanson in a press release.

"We're hoping there will be an income tax reduction in this budget, so there'll be an incentive to stay here or come back here, and there will be more of a level playing field with Alberta. That's the whole key to what we need, and everything else follows after that," said MLA Bakken.

Bakken, who is her party's deputy health critic, will also closely watch for health care funding. As the Saskatchewan Party has said since the election campaign, she believes there is enough money in the health care system now, but an audit is needed in order to determine how the money is being spent.

"What we need is a recognition of the problems in health care, and an honest effort to find some solutions," she said.

The Vicq committee has proposed instituting a health care premium system, similar to Alberta's, which would bring in an estimated $165 million.

Regarding income tax, the report recommends changing the income tax system to a tax-on-income instead of the current tax-on-tax system. The tax-on-income system would set a rate of 11 per cent for incomes up to $35,000 a year; 13 per cent for incomes between $35,000 and $100,000; and 15 per cent on incomes over $100,000.

The committee recommends phasing this income tax change in gradually, to be fully implemented by 2003. The non-refundable tax credits would also be increased up to $8,500 for the tax filer, up to $8,500 for spousal credit, and up to $3,000 per child.

If these credits are increased, the committee estimates that up to 58,000 people will be eliminated from the provincial tax rolls.