EDMONTON: B.C. is poised to have lower income tax rates than Alberta in 2002 for single individuals earning less than $61,000 per year. According to yesterday's B.C. Finance Ministry announcement, B.C. personal income tax rates in 2002 will be reduced to 6.05% and 9.15% for the two lowest income brackets, lower than Alberta's 10% single rate. Alberta families will still pay less income tax than B.C. families, because Alberta's spousal exemption is $12,900 compared to $6,850 for B.C.

"Alberta should increase the basic personal income tax exemption from $12,900 to $16,500, or reduce the single rate from 10% down to 8%," stated Canadian Taxpayers Federation (CTF) Alberta director John Carpay. "Either way, Alberta can keep the lowest income tax rates for single individuals in 2002, and preserve the Alberta Advantage."

After adjusting for inflation and population growth, Alberta government spending for 2001-02 is 34% higher than 5 years ago. Spending is at its highest level in nine years. All of the spending cuts made in the mid-1990s have been virtually erased.

"Alberta government spending is back in the same range it was 10 years ago under Don Getty. Spending this year is way up, but without announcements for new tax cuts for 2002," noted Carpay.

"B.C.'s positive steps underscore the need for a clear and definitive plan to control spending, and to put a portion of oil and gas revenues into the Heritage Fund for the sake of future generations."