Well, maybe that’s not totally true. They care about them – they care about robbing them and stealing their money!
We all know the NDP lies about the decisions they make – I could go on and on about the lie they spew about photo radar being for safety. Or the lies around Bipole.
But lets look at one of the items from their throne speech, shall we – the additional minimum wage increase that the government promises.
Never mind the fact that minimum wage increases do more harm than good as working poor usually earn higher than minimum wage and an increase in their wage isn’t tied to minimum wage.
Never mind that it’s widely accepted that tax reform is more of a benefit than a minimum wage increase – but A-Ha! tax reform means the government has to look at spending, but a minimum wage increase can be passed onto businesses
So lets look at some facts and numbers with respect to minimum wage and tax, shall we ( excluded QC, because their tax rates are not really that comparable)?
FACT: Manitoba’s minimum wage of $9.50 is only less than Ontario, Nova Scotia, Newfoundland, and Nunavut ( Low = $8.00 BC, High = $10.25 ON)
FACT: Manitoba’s lowest provincial tax rate of 10.8% is the second highest in the country to Saskatchewan’s 11%, but Manitoba’s increases to 12.75 on earnings over $31,000 and Saskatchewan’s only increases after $40,000 to 13% ( Low = 4%, AB has 10% flat, ON = 5.05%, BC = 5.06%)
FACT: Manitoba’s basic personal exemption of $8,134 is lowest west of Quebec, and only the 4 maritime provinces have lower rates ( High AB $16,775, low NL $6,992)
So what does this all mean?
If you make $25,000, you will pay more provincial income tax ($1,821.53) in Manitoba than anywhere else in Canada. $677.09 more than if you made the same amount in Saskatchewan. And more than double the amount you would pay if you lived in any other province west of Quebec ($818.25 to $843.60)
Now lets bring minimum wage into this.
A full-time employee in Manitoba ( 2080 hours) makes $19,760 per year. That’s highest west of Ontario.
What happens when we look at the tax effect and after tax dollars? Well, that high tax burden means Manitoba moves down in terms of net standing for after provincial tax income.
BC has a low minimum wage, but a higher minimum exemption and lower tax rate. The result: the tax effect is a 2.8% drop in income.
For other provinces west of Quebec: AB 0.84% drop, SK 2.66% drop, ON 3.09% drop. Manitoba , with a high minimum wage, low tax exemption and high tax rate means income drops 6.35% from gross to after tax. Highest in the country.
What would we have to make in terms of minimum wage IF we used SK’s rate and exemption to yield the same amount? $9.13
So remember this when you talk about any minimum wage increases.
An NDP government, that supposedly represents low-income earners better than PC or Liberals, taxes them and leaves them with less income than PCs or Liberals
And because of Manitoba’s high tax rate on low-income earners, the provincial government benefits at a proportionally higher rate from any minimum wage increase than any other provincial government in Canada.
So in essence, minimum wage increases are a backdoor business tax increase.
Wanna live up to your mantra of helping the lower class? Crank the basic personal tax exemption, and drop the lowest personal income tax rate. That will make a difference.
But that also requires either cutting spending or finding new, innovative revenue streams, neither of which our provincial government has the brains or balls to do.