Mayor's tax cuts to create new jobs and growth
20 per cent business tax cut key to core area renewal

WINNIPEG - MARCH 17, 2005 - Committed to bringing a new approach to downtown development, Winnipeg Mayor Sam Katz today outlined his commitment to cutting business taxes in the core area of the city to create economic growth and jobs.

“The business tax kills jobs – it’s that simple,” said Katz. “If we want to see this city move ahead, we have to give businesses a reason to move here, to invest here. Making a move on the business tax is an essential first step to making Winnipeg truly ‘Open for Business’, and downtown is the best place to start.”

If city council approves the 2005 budget, businesses located in the downtown area will see a 20 per cent cut to their business taxes. This represents the first step in the Mayor’s long term plan to completely eliminate the tax, and the first-ever reduction of the tax in Winnipeg.

“Reducing taxes is not easy with tight city budgets, but the status quo cannot go on,” said Katz. “It’s a question of priorities. We have to pick the right ones for the future of our city.”

The downtown business tax cut, together with plans to support a pedestrian mall at the University of Winnipeg, new infill housing and renovation reward programs are all designed to bring a fresh approach to downtown development, which sees the city creating the right environment for the private sector to sustain downtown’s new growth.

Councillors will vote on the 2005 operating budget at a special meeting of city council on March 22nd.

Background – Business Tax Cuts:

• 1,929 businesses will have their business taxes cut by 20 per cent, saving them $2.1 million dollar to reinvest in jobs, equipment and better services
• The 1,382 members of the downtown BIZ alone will save some $1.7 million
• 1,545 businesses will save an average of $343
• 888 business will save an average of $2,190
• 79 businesses will save an average of $13,298
• Cutting business taxes are essential to preserve Winnipeg’s competitive position
• The Federal Liberal government is making tax cuts
• The Provincial NDP government is making tax cuts
• Jurisdictions across Canada have moved to eliminate the business tax