Business tax hearing says:

Taxes are needed, should not be cut

By GREG NIKKEL of the Weyburn Review

A citizens' budget commission has begun a round of hearings in the province to counter the message of big business that taxes need to be cut, saying that taxes are needed in order for government to maintain the services residents need.

The hearing, held in Weyburn on Monday by the Canadian Centre of Policy Alternatives to coincide with the upcoming release by the provincial government's Business Tax Commission on Thursday, heard from low-income and youth-oriented organizations, which both say the government is not doing enough to fund the very poorest of Saskatchewan residents.

Dr. Philip Hansen, a professor from the University of Regina, chaired the day-long hearing in Weyburn along with Lynn Gidluck, director of the Saskatchewan office for the Canadian Centre of Policy, and Dr. Jack Warnock, retired professor from the U of R.

Hansen said they were interested at looking into the role and nature of business taxes, particularly in light of the upcoming release of the report from the Business Tax Commission.

He said in the hearings held by that commission, "a lot of us are concerned that the debate was monopolized by business groups. We want to challenge the view that tax cuts are necessary for growth."

Gidluck agreed, noting that much of the input to the commission was from business lobby groups who just want lower taxes.

"The argument we're trying to get people to think about is if there are less taxes, there's less revenue coming in to the government. We'd like to have a more rational debate around the issue," she said.

The first speaker the commission heard from was Fred Sandeski of the Community Low Income Centre in Weyburn.

He spoke of the work his group is attempting to do in the city, and noted he isn't asking to cut taxes, but to redistribute the burden of those taxes to those who can better afford to pay them.

"We need to help the smaller businesses to grow. A lot of the jobs that are out there are created by the smaller businesses. We have to promote and invest in these businesses," said Sandeski, noting that large corporations take advantage of tax loopholes to the extent they are paying very little in taxes.

"We need to change that so low and middle income earners are getting the advantage," he added.

Sandeski said he works with low income people who have good ideas for starting up a new small business, but they have no resources with which to start, and suggested the possibility of making some of these new small businesses tax exempt at the start to help them get off the ground.

"I really do believe the system is warped so the high income sector is getting the tax breaks. We have to warp it so middle income areas are developed a little stronger," said Sandeski. "We have to put more money into the low and middle income sectors to develop the province."

He also suggested to the commission that part of the problem in this province is the government has no long-term plan for economic development.

Asked how those on social assistance are faring in Weyburn, Sandeski replied the government makes it very difficult for them, with benefits reduced by 10 to 15 per cent to encourage people to get off social assistance and find work.

"They're using employment like a big stick. There has to be some income security, to provide security for the future. A lot of the job markets are changing so quickly, a lot of people I'm dealing with don't have the tools to move into the labour market," Sandeski explained.

A lot of people need proper job training in order to be employed, but when they're on social assistance, it's impossible to afford the fees to get that job training, he added.

Asked when the last increase was in social assistance, Sandeski said there was a recent increase of $10, which "doesn't even cover the inflation rate", and before that the last increase was back in 1985.

Sandeski also explained that part of his work with the Low Income Centre is helping people find housing, and with the housing allowance given by the government being so low, he's finding that next to impossible.

Another speaker to come forward was Brian Hopfe, executive director of the Weyburn Youth Centre, who noted the government provides almost nothing at all in support of youth."I'm disappointed, there's nothing. We get zero financing from the federal or provincial governments, which really has been a shock to me. The government says they want to reach out and help our youth, but I don't see it," said Hopfe.

He explained that as the director of the youth centre, they are trying to provide a safe place for youth in Weyburn to hang out at, with volunteers who help mentor youth and be a friend to them. As far as funds, Hopfe notes he has to raise his own salary from supporters, as does any paid staff of the centre.

"I'm not looking at making any large amount of money, I'm in it to help the youth. The government claims they're out there to help, but they don't," he said.

He told the commission he knows of homeless youth in Weyburn who shift from friend's house to friend's house, with no help available for them, and told of a recent example where they provided a meal to a girl who hadn't eaten in a week.

Later, Gerald Borrowman, a board member for the Low Income Centre, said in his dealings with the poor in Weyburn he had never heard that there were homeless youth in Weyburn, and suspected three-quarters of city residents don't know about it.

Hopfe said besides providing the drop-in centre and, most recently, a skateboard park for city youth, they also provide a tutorial program to help kids who need help with their studies, and even teach basic life skills to an all-girls' group. He estimates the centre sees between 4-600 youths a week.

"This is the other side of the taxation issue. Taxes potentially pay for services, and if we reduce government revenues it makes it even less likely they'll pay for services like yours," commented Prof. Hansen, acknowledging the government "are not even providing the services they should be."

Asked what message he would want the government to hear, Hopfe replied, "It's important the government sees there are organizations like this out here."

He noted that there is funding available if their group deals with aboriginal youth, but as Weyburn doesn't have a significant aboriginal population, that funding is not provided.

He said he has nothing against First Nations people, but noted they are not the only ones who need help in this province.

"The government needs to wake up. There are all kinds of programs that are there to help individuals, and somehow we need to get funding to these programs. I think it's pretty ridiculous that the top dogs hardly pay anything for taxes while the lower and middle class pay out their nose," said Hopfe.

Borrowman, who is also involved in the union movement, said he's faced the same kind of trials in trying to find government support for the Low Income Centre, and was told by high-level union people that this is where the NDP government is at: "They're not listening. We're basically ignored by the highest levels of government."

He added they're "not even being politely ignored" but are shuffled off to bureaucrats who basically throw out any letters of request they've sent in for help, and they have never even received a reply to any request they've made.

The citizens' budget commission will travel to six other centres between now and Dec. 16 before passing on their findings.

 


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