Thursday, August 28, 2008

Sask needs $350 million in school tax relief

Saskatchewan relies on school property taxes more heavily than any other jursidiction in Canada. The province provides just 50.8 percent of school funding and puts the remaining 49.2 percent on property taxes.

The problem? Property taxes are regressive and place a higher burden on low-income earners and farmers than their incomes call for. The Boughen Commission in 2003 (p. 18 on this pdf) found that property taxes represented 2 percent of incomes for those making $100,000 or more, steadily increasing to 10 percent of income at the lowest bracket of under $20,000.

It's high time that Saskatchewan's provincial government increased its share of school funding and lowered its property taxes. It's also a good time to facilitate school choice as Alberta did by funding charter and private schools.

Read all about it in a newly released CTF report "Solving the Problem".

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