The Canadian Press
WINNIPEG—Manitoba Premier Greg Selinger is considering a surtax on high-income earners and feels he no longer is bound by a provincial law that would require a referendum on major tax changes.
Selinger said no final decision has been made, but he’s been “looking at” high-income tax rates that have been implemented in Alberta, Ontario, and federally under Prime Minister Justin Trudeau.
“I note many jurisdictions have implemented a surtax already across the country—both east and west of us,” Selinger said in a year-end interview with The Canadian Press.
“There’s different options that have been started to be proposed,” he added.
“We’re working our way through this consideration right now.”
Alberta’s NDP government has replaced the province’s flat 10 percent income tax rate with a series of higher-income tax brackets for people earning more than $125,000 annually.
As of next year, the top bracket—for those earning more than $300,000—will reach 15 percent.
Manitoba’s current top tax rate is 17 percent and kicks in at $67,000.
Selinger said it’s too early to discuss details, such as at what level a surtax might apply and the rate.
He also suggested that if a surtax is implemented, it would be at least partially offset by cuts to middle and lower income taxes.
Selinger ran into public anger in 2013 when he raised the provincial sales tax to eight percent from seven.
He suspended a section of the province’s balanced budget law that required a referendum on any increase to sales, income, or corporate payroll taxes.
The opposition Progressive Conservatives took the issue to court and argued Selinger was not allowed to sidestep the referendum.
A Court of Queen’s Bench judge rejected the Tory argument.
“The courts ruled that the way the [balanced-budget] law was written was illegal and unconstitutional . . . but we do believe people need to have a chance to have input into things,” Selinger reasoned.
He said people would have their say via legislature committee hearings—Manitoba is one of two provinces in which every legislature bill must undergo public hearings.
He also hinted a surtax could be an issue for the provincial election set for April 19.
