Pre-budget submission (178 KB)

EDMONTON: The Canadian Taxpayers Federation (CTF) today presented Alberta Finance Minister Pat Nelson with its submission for Budget 2004-05, called "Time for tax cuts!" The ten recommendations are as follows:

1. Abolish the health care premium tax.
   The Alberta Government, taking in more than $25 billion in revenues, should stop gouging Alberta families for an additional $1,056 per year in health care premium taxes, all of which go into General Revenues and do not pay for health care any more (or less) than other taxes.
2. Abolish the 3% tax on car insurance.
   Eliminating this 3% tax would be a small but positive step towards reducing the price of car insurance for Albertans - immediately and permanently.
3. Limit growth in public sector salaries.
   Public sector workers - including doctors, MLAs, nurses and teachers - have received double-digit wage increases, which are far greater than wage increases received by workers in the private sector. In contrast to large public sector wage increases which help only one group of Albertans, tax cuts would help all Albertans, including doctors, MLAs, nurses and teachers.
4. Freeze program spending
   at $20 billion for Budget 2004-05.
5. Protect taxpayers with legislation.
   The Alberta Taxpayer Protection Act requires that a referendum be held prior to the introduction of a general provincial sales tax. All other new taxes and tax increases can be imposed at any time for any reason - even when this violates an unequivocal election promise.
6. Control spending with legislation.
   A 71% program spending increase in just seven years, together with tax increases in 2002, underscore the need for spending control legislation. Alberta's current legislation, and Alberta's new Sustainability Fund, do not protect taxpayers from tax increases or from their cause, which is massive program spending increases.
7. Reform the health care system.
   The CTF supports policy changes towards more accountability and more choice in the health care system.
8. Don't go back into debt.
   Premier Klein's legacy of debt repayment will be destroyed - slowly but surely - by the decision in 2002 to allow government ministries to borrow money for capital projects.
9. Penalize ministers
   who fail to meet their budgets, as British Columbia's Balanced Budget and Ministerial Accountability Act does.
10. Reduce the size of cabinet
    back to 17 members. In 1992, Premier Klein launched a revolution by reducing cabinet from 26 down to 17 members. It is no coincidence that the 71% program spending increase since 1996 took place at the same time that cabinet has grown back up to 24 members.

This submission is available from the CTF's web site at www.taxpayer.com, and from the Edmonton office.