Manitoba government should not gamble taxpayers’ money on venture capital funds
The Canadian Taxpayers Federation (CTF) is calling on the Manitoba government to focus on broad-based tax relief rather than gambling taxpayers’ money on a venture capital fund. The province issued a release announcing its search for fund managers on Feb 08.
“It’s wrong for the government gamble taxpayers’ money on investment schemes,” said Todd MacKay, Prairie Director CTF. “It’s wrong because the government might lose the money like it did with the Crocus Fund debacle. It’s also wrong because the government inevitably sets up rules dictating who qualifies and who doesn’t, which is just another way of unfairly picking winners and losers.
“The best way for the government to encourage investment and create jobs is to cut taxes.”
The government is unclear as to whether it would funnel taxpayers’ money directly into the investment fund or indirectly subsidized it with tax credits, but, in either case, such a fund would put tax dollars at risk and distort the market.
The last time the Manitoba government embarked on this type of project Manitobans lost millions when the Crocus Investment Fund collapsed.
“The Manitoba government needs to focus on its cornerstone platform promise: cutting the PST,” said MacKay. “Whether the government pours tax dollars directly into an investment fund or props it up with boutique tax credits, it’ll leave less room in the budget to cut the PST. Cutting the PST will help every family and business in Manitoba.”
Source:Canadian Taxpayers Federation
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