Unless we remain vigilant for ways to keep Manitoba attractive and competitive, our children and grandchildren will leave, and that is not acceptable. In presenting the government's fifth straight balanced budget, Gilleshammer announced across the board personal income tax cuts on top of reductions announced in the last provincial budget and those announced in the recent federal budget. For 1999, Manitoba's personal income tax, as a percentage of federal tax, will drop to 48.5 per cent. Gilleshammer announced a further cut to 47 per cent, effective Jan. 1, 2000. With these reductions, Manitoba's personal income tax rate will have been slashed by five points in just three years.
Tax cuts create jobs and keep our young people at home.
These reductions are part of a longer term plan to ensure Manitoba remains competitive as the world around us changes. We face new challenges and these tax cuts are part of our plan to meet these new challenges. The government has also struck a Lower Tax Commission to consult with Manitobans on how to make the province's tax system fairer, simpler and more competitive. As a further measure to create jobs, it also introduces the Manitoba Equity Tax Credit to provide incentives for Manitoba investors to purchase qualifying securities newly issued by Manitoba companies through the Winnipeg Stock Exchange. Gilleshammer noted making the province competitive and attractive is not just about tax relief.