Moldy Peaches

Federal Finance Minister and Saskatchewan's only Liberal MP Ralph Goodale is all teeth after delivering the 2005 Economic and Fiscal Update. Goodale's goodies include:

An immediate $500 increase in the basic personal exemption, which leaves more money in the pocket of every Canadian taxpayer.

An immediate drop of one percentage point in the lowest personal income tax rate, from 16 per cent to 15 per cent.

A plan to restore corporate tax cuts dropped last spring as the price of NDP support in the House of Commons.

A $2.75-billion boost in post-secondary education aid over the next five years, as well as a $1-billion higher education innovation fund and $2.1 billion more for university research funding.

$3.5 billion more for workplace training programs - this includes money for individuals with disabilities and First Nations Canadians.

A promise of $1.3 billion more over five years to help immigrants settle in Canada.

Just more than $1 billion over five years for trade supports.

An extra $100 million over five years to help bring broadband internet service to remote communities across Canada.

All of this money is coming from the overtaxed Canadian and the fact that the federal government is taking too much of your money.

It is a little sad that Goodale didn’t take time to address the blatant injustice of resource revenues and equalization. Apparently making gains in Saskatchewan isn’t a priority. Under the current Equalization formula, a sizeable chunk of Saskatchewan’s energy revenue is taken away by Ottawa. Often, more oil and gas royalty revenues are clawed back than are retained. However, if Saskatchewan’s oil and gas revenues were exempt from the formula, as is now the case with Newfoundland and Nova Scotia (and Alberta), Saskatchewan would have received $4 billion over the past 10 years of its own money.

Oil and gas are non-renewable so energy revenue is one-time money. It is not an ongoing source of revenue that can be counted on, like income tax or sales tax. If, and when, the price of oil drops, revenue streams plummet.

The Government of Saskatchewan has a great awareness campaign going on right now to draw attention to this matter. It is a parody of the flag debacle on the rock last year. It is well worth a look.